"If you build it, they will pay"

Read the full article by Catherine Zandonellain the IAVI Report

"A novel incentive called an Advance Market Commitment could help spur private sector investment in AIDS vaccine research and development."

"What if you could order your dream house, the perfect abode that would take years to design and build to perfection, but only have to pay for it on the day you are ready to move in? Global public health experts are exploring just such a concept, only the "house" is a vaccine for a disease such as AIDS and the people buying it are international foundations and governments that want to provide the vaccine to the poorestnations on the planet. The important part is these donors only have to pay for the vaccine once biopharmaceutical companies create it.

"Under an AMC, donors would pledge to purchase a new vaccine for one of these developing-country diseases at a price that would generate revenues that match other health products in a global competitive marketplace. The donors would commit to pay a set price for a certain number of people immunized, after which the vaccine company would be obligated to sell to eligible countries at an agreed-upon lower price that is affordable in the developing world.

"'The goal is to create a market of sufficient size to encourage industry to invest in vaccine development,' says Robert Hecht, senior vice president for public policy at IAVI, one of several organizations exploring the concept.

"IAVI envisions AMCs as part of a comprehensive strategy. The commitment would "pull" on industry to engage in vaccine research and would complement existing "push" mechanisms such as funded research in academic labs and biotechnology companies. To make the concept successful, the global health community must also work on removing barriers to vaccine research across a range of issues, including clinical trials, intellectual property, and liability. "Advance market commitments are part of a menu of things that are necessary, none of which alone is sufficient," says Seth Berkley, president and CEO of IAVI."