By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    UV damage to eyes
    Warning Signs of Long-Term UV Damage to Your Eyes
    December 9, 2021
    degree for healthcare job
    The Ultimate Healthcare Recruiting and Staffing Guidebook
    March 21, 2022
    medicare part d benefits
    Everything that You Need to Know About Medicare Part D
    August 15, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    health navigators
    What Is a “Navigator”?
    July 17, 2013
    “Stunning Progress” but OOPs! in Afghanistan
    December 23, 2011
    physicians and medicare payments
    Physician Payments: The Not-So-Secret Secret
    August 9, 2013
    Latest News
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: AMCs: The Journey from Idea to Action
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Global Healthcare > AMCs: The Journey from Idea to Action
Global Healthcare

AMCs: The Journey from Idea to Action

Amanda Glassman
Last updated: November 12, 2011 10:08 am
Amanda Glassman
Share
5 Min Read
SHARE

 

This is a joint post with Kate McQueston

November 12th is fast approaching and with it comes world pneumonia day. Unfortunately, pneumococcal diseases still pose an enormous global threat–remaining the leading cause of death for children worldwide and taking the lives of 1.4 million children under five years annually. What’s more—a staggering 98% of these children live in developing countries.

 

More Read

1
6 Benefits of Becoming Accredited
The Changing Body
We Need to Measure What Counts, Not What We’re Paid to Count
Mobile Health Around the Globe: Sending the Right Message on mHealth
Paying Bills: A Novel Idea in Southern Europe

This is a joint post with Kate McQueston

November 12th is fast approaching and with it comes world pneumonia day. Unfortunately, pneumococcal diseases still pose an enormous global threat–remaining the leading cause of death for children worldwide and taking the lives of 1.4 million children under five years annually. What’s more—a staggering 98% of these children live in developing countries.

But November 12th doesn’t only bring bad news—it provides an opportunity to reflect on “what works” for new vaccine development and access. At least in some ways, the case of pneumonia has been a success story.

Over six years ago the CGD launched a report outlining how incentive structures could be designed to encourage pharmaceutical and biotechnology manufactures to invest in research and development of vaccines for global diseases. This report, Making Markets for Vaccines: Ideas to Action was based on a concept by Michael Kremer and suggested that commitments to purchase vaccines – if they are developed – might provide needed incentives to accelerate the creation of new vaccines for the developing world.

Luckily for many children around the world, the ideas from these reports aren’t just ideas any longer. I was more than happy last year (read my post here), when this method—termed an Advanced Market Commitment (AMC)—helped make new pneumococcal vaccines available to an initial set of 19 countries. GAVI reports that the roll-out will continue to cover a total of 40 countries by 2015—averting as many as 650,000 deaths within the next four years.

A further benefit of the AMC is that it reduced the lag-time that normally occurs between the introduction of a new vaccine in developed countries and when it reaches low-income countries. This is particularly important for pneumonia, as a child in Nicaragua (the first country to receive the vaccine from the AMC) is more than two-hundred-thousand times (yes two-hundred-thousand) more likely to die from the infection than a child in the United States. The quick roll-out is making substantial impact on saving saves.

There are many other advantages too–for example, the World Bank and GAVI indicate that the AMC:

1) Mitigates market failures: As I have argued before, the reduction of unpredictability and volatility has had a large effect on encouraging private investment. Not only does this provide a guaranteed market for introduced vaccines, but it also allows country governments to plan and budget appropriately for their immunization programs with the knowledge that the vaccines will become available at reasonable price.

2) Encourages competition: AMCs are open to any company or organization—motivating a wide variety of originations to participate in the creation of innovative and cost-effective treatments.

3) Pushes down vaccine prices: By providing a long term contract which pre-establishes market volumes following vaccine development, vaccines can be sold at a price that is affordable even to low-income countries. The pneumonia vaccine, for example, costs developing countries just $3.50 a dose and may be set to fall further.

Making a vaccine available is not enough. The major barrier to roll out is not science or even effectiveness, but whether long-term, large volume funding will be committed such that manufacturers make the investments needed to produce at scale. The success of the AMC argues for further investments in this instrument as new vaccines come online.

TAGGED:Advanced Market Commitmentsvaccines
Share This Article
Facebook Copy Link Print
Share
By Amanda Glassman
As a healthcare blogger and author, I have been writing about the latest developments in the medical field for over 10 years. My work has been featured on various online publications, including Healthline and WebMD. I am passionate about educating people on how to stay healthy through proper nutrition and exercise practices. In addition to my blog posts, I have also authored several books that focus on health topics such as dieting tips, disease prevention strategies, and mental health awareness initiatives. My goal is to provide readers with reliable information so they can make informed decisions regarding their well-being.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025
How Therapy Can Improve Your Mental Health and Daily Life
How Therapy Can Improve Your Mental Health and Daily Life
Mental Health
June 18, 2025
healthcare facilities
Preventing Contamination In Healthcare Facilities Starts With Hygiene
Global Healthcare Infographics
June 15, 2025

You Might also Like

A New Call-to-Action: Strong Is the New Skinny!

January 23, 2013
healthcare app development
Global HealthcarePolicy & LawTechnology

13 Mobile App Development Tips for Healthcare Startups

May 27, 2022
medical
BusinessFinanceGlobal HealthcareHealth careHospital AdministrationTechnology

Sustainable Tips For Financial Management In Medical Practice

April 1, 2020
Global HealthcareHealth careMarketing

5 Top Digital Healthcare Marketing Strategies For 2019

November 23, 2018
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?