Are World Poorest Children Losing Out On G8 Focus On Profits?

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Main Category: Aid / Disasters
Also Included In: Pharma Industry / Biotech Industry;  Immune System / Vaccines;  Pediatrics / Children's Health
Article Date: 27 Jul 2007 - 1:00 PDT


The G8 countries, the most powerful economies of the industrial world, have donated $1.5 billion towards to eradication of disease among the poor children of the world. However, only 25% of this money will be spent on vaccine costs, the other 75% will go to profits. In order to save the highest number of lives possible the G8 should really have negotiated the lowest, sustainable non-profit price, according to a Comment in The Lancet this week.

According to Prof. Donald Light, Netherlands Institute for Advanced Study, the contract the G8 countries are using follows the same business model as that used by multinational pharmaceutical companies when selling in rich nations. In the current case, the G8 is planning to purchase a pneumococcal vaccine that is already discovered, and has already been developed for the markets of the developed world. In other words, it is in effect an extra contract - icing on the cake - that should be non-profit to help fight disease among the poorest kids in the world.

"This alternative strategy could be called the Advance Maximum Benefit Commitment (AMBC)," explains Prof. Light.

As the current G8 contract stands, $5.00 to $7.50 will be shelled out for each dose. This, according to Prof. Light's estimate, is about four times the average cost, including capital and overhead costs for enlarging production facilities. With the AMBC strategy, however, 1.2 billion more children could be helped. He wonders whether developing countries will stand by silently while the G8 pay four times the average sustainable costs of these vaccines.

http://www.thelancet.com

Written by: Christian Nordqvist
Copyright: Medical News Today
Not to be reproduced without permission of Medical News Today

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