Experts agree that a plan to providemarket incentives for pharmaceuticaland biotech companies to developvaccines against diseases that kill millionsof individuals in developingcountries annually can significantlyadvance global health. The Center forGlobal Development (CGD) workinggroup released its report, Making Marketsfor Vaccines: Ideas to Action, onWorld Health Day, April 7, 2005. Theplan calls for rich countries and otherdonors to pledge to buy new vaccinesfor diseases such as malaria andHIV/AIDS, strengthening the incentivefor companies to invest inresearch and development.
The report states that a market of $3billion is required to provide incentivesfor companies to develop a newmedicine. For instance, sponsors couldpledge to underwrite a price of $15 pertreatment for a malaria vaccine for thefirst 200 million treatments. At thisprice, the advance market commitmentwould be a bargain, comparedwith many other development costs.This plan also could speed delivery ofrecently developed vaccines.
"This approach unleashes the samemarket incentives that have been soeffective in improving the health ofpeople in rich countries," said NancyBirdsall, president of CGD. "And itensures that, once a vaccine is developed,the funds will be there to get thevaccine to the people who need it."