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Blog Examines ‘Advanced Market Commitment’ Funding Mechanism

Writing in the Center for Global Development’s (CGD) “Global Health Policy” blog, Amanda Glassman, director of global health policy and a senior fellow at the CGD, and Kate McQueston, a program coordinator to the global health policy team, examine the Advanced Market Commitment (AMC), an “innovative financing mechanism [that] aims to increase investment in vaccines for use in lower-middle income countries (LMIC) by guaranteeing a market for appropriate health products and services, reducing unpredictability or volatility that can discourage private investment, and increasing competition and innovation between companies and organizations.” They provide a timeline of the history of the initiative from conception of the program to its launch and the delivery of its first vaccines in 2010, and highlight the “pilot AMC — launched in 2009 — [which] incentivized the development of pneumococcal vaccines (PNV).” They discuss a recent evaluation of the initiative from Dalberg, contracted by the GAVI Alliance, noting, “In particular, the report explores the processes for determining prices for vaccines funded by the AMC, which is one of the most difficult steps in the design process,” and they conclude, “Getting the price right on AMCs is a delicate balance, but the lessons learned from the PNV AMC will be instrumental in informing the design of future efforts” (6/14).

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