Pfizer and GlaxoSmithKline pledge long-term supply of pneumococcal vaccines to world's poorest countries at big discount

Two of the world's largest drugmakers, the USA's Pfizer and UK-based GlaxoSmithKline, have made pledges to supply cut-price pneumococcal vaccines to the world's developing countries, under a 10-year commitment, the Geneva, Switzerland-based public-private partnership GAVI Alliance announced yesterday.

GAVI's program to treat pneumococcal disease received initial funding of $1.5 billion from the governments of Italy, the UK, Canada, Russia, Norway and the Bill & Melinda Gates Foundation. "Today's landmark announcement promises to make new vaccines available affordably, where they are urgently needed, and faster than ever before," said GAVI chief executive Julian Lob-Levyt.

The agreement is funded by a ground-breaking mechanism called an Advance Market Commitment (AMC) and is the result of years of planning by GAVI, UNICEF, the World Bank and major donors, who recognized the potential of vaccines to prevent diseases in developing countries. The mechanism is backed by the G8 and was officially launched by the AMC partners and donors on 12 June 2009.