1

Post-AMC objectives

• Assurance to donors that investment in AMC will result in continued supply to meet, at a minimum, demand created during the AMC

• Predictable prices and assured supply to enable countries to make informed national decisions to introduce the pneumococcal vaccine into the health program

• Lower long-term prices to facilitate sustainable funding by national governments and partners once AMC funds are depleted

• Defined and economically feasible obligations for firms

• Mechanisms to address inflation

2

Post-AMC Price Agreement

• Each firm will be required to set their post-AMC price per dose as part of their Guarantee and Supply Agreement,

– Firms will not commit to a price 13 years in the future set by an external entity.

– The post-AMC price can be lowered but not increased.

– Force majeure mechanism established to address changed circumstances

• To further build on market forces, the post-AMC price will partially determine the country co-payment set for each vaccine.

– Thus the post-AMC price will influence demand during the AMC.

– Each firms post-AMC price becomes a competitive factor – influencing which products are demanded by countries

3

Post-AMC Supply Commitment

In the unusual situation where firms can or do not wish to fully meet demand, there will be a minimum volume obligation for those who received AMC funding. Following are possible options to determine volume commitments:

– Volume commitments starts at peak supply level as measured during the AMC and this is adjusted based on real demand (average of required amount and actual demand on rolling basis). Requirements are waived on temporary basis if force majeure.

– A firm can exit market without question if national demand is adequately met by other firms in the market.

– This post-AMC agreement sunsets after a certain number of years (e.g 10 years from the start of the post-AMC period).

– Firms will be obligated to provide a set number of years notice (e.g. 4 -6) before it can close the facility.

4

Illustration of on-going volume commitment

During AMC Post-AMC volume commitments

Minimum Demand cut-off