GSK to Freeze Vaccine Prices for Developing Countries

GlaxoSmithKline said that it will freeze vaccine prices for developing countries that advance from GAVI Alliance support for five years.

A long-standing partner of the GAVI Alliance, which supports vaccinations of children in poor countries, GSK will continue to offer its lowest prices for vaccines against pneumococcal disease, rotavirus and cervical cancer to these countries. The prices can be as low as one-tenth of those in developed countries, the company noted.

Twenty-two countries with growing economies will graduate from GAVI support by 2020, the organization said. This allows GAVI to focus resources on the poorest countries, while empowering governments to take responsibility and ownership for their vaccination programs.

GSK said it is first company to pledge its lowest prices for five years as countries take this step, which will allow developing governments to plan for funding the full cost of their immunization programs.

“The achievements of the GAVI Alliance are remarkable with 6 million lives saved since its formation in 2000,” said Sir Andrew Witty, CEO of GSK. “Successful vaccination programs have no doubt also helped countries to develop in this time.”

“For countries that are doing well and are moving out of GAVI, I’m pleased that we are able to offer governments a price freeze to help ensure that children continue to be protected by national immunization programs,” he added. “At the same time, GSK remains fully committed to supporting GAVI to expand and accelerate access to vaccines for children in the countries that still require the support of the Alliance,”

According to GAVI, 53 countries are currently eligible for support, which is based on a per capita Gross National Income below or equal to $1,570. — Kellen Owings

Subscribe to Drug Industry Daily for complete coverage of the pharmaceutical industry. Click here for more information.