On March 14, 2019, the vaccination company Pfizer, in partnership with Gavi, The Vaccine Alliance reduced the price of the pneumococcal vaccine (PCV) to $2.90 per dose for eligible countries. Gavi’s mission since 2000 has been to “improve access to new and underused vaccines for children living in the world’s poorest countries”. Public and private sectors fund the creation and distribution of important vaccines in 73 developing countries partnered with Gavi.
The Benefit of Price Drops
In 2017, the price of a single dose PCV was $3.30. However, as a result of negotiations between Pfizer and Gavi there have been three pneumococcal vaccine price drops since January 2017. It is expected to save developing countries $4.1 million this year. Dr. Seth Berkley, the CEO of Gavi says “pneumonia remains the single largest cause of death for children worldwide and [the] pneumococcal vaccine is one of our largest weapons against it”. The price drop comes at a pivotal time.
PCV is a Priority
PCV takes as long as 15 years to reach developing countries that need it the most. Whereas the vaccine is already easily accessible and widespread in industrialized nations. Vaccines have not been easily accessible in developing nations. They are expensive and difficult to distribute effectively in nations lacking funds and resources. The focus is on different areas. For example, the proportion of developing countries’ exports that is needed to service their overseas debt rose from 11 percent in 1970 to 18 percent in 1996, while overseas aid from the U.S. plummeted $14 billion. With the drop in PCV pricing, developing countries can invest in their public health.
The value of vaccines as a long-term investment for developing countries is leading to pneumococcal vaccine price drops. Vaccinating the youth population of developing countries, according to Gavi, creates a “virtuous cycle”.
The Cycle Follows This Order of Cause and Effect
- Children have vaccines before the age of two
- These children are likely to be healthier and live longer
- Children have fewer and less serious illnesses
- This leads to lower care costs for health systems and family
- Which means more family money available to spend or save
- Children will attend school more, fueling better outcomes
- A family’s economic outlook will strengthen based on these outcomes
- Birth rates drop and mother’s health improves
- A community becomes more economically stable and productive
- Contributing to politically and economically stable countries
By looking at the cost-benefit analyses for vaccinations, scientists are able to see this “virtuous cycle” in action. A study, conducted by the Cebu Longitudinal Health and Nutrition Survey in 1975, took data from a sample of Filipino children. Researchers compared test scores of children who received six vaccines in their first two years versus those that did not. The study reveals the association of immunization with improved IQ scores, language and mathematics tests. Untreated childhood illness can impair cognitive development.
Developing countries often have large obstacles to face such as food scarcity, a lack of widespread education and low GDPs. Investing in vaccines is a long-term solution that will benefit the economic, health, societal and governmental sectors of these nations. With the pneumococcal vaccine price drops, this seems to be an attainable reality for developing countries.
– Meredith Breda