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Vaccines group seeks $7.5 bln as disease fight reaches peak

Thu, 22nd Jan 2015 18:17

By Ben Hirschler

DAVOS, Switzerland, Jan 22 (Reuters) - The GAVI globalvaccines alliance is seeking to raise $7.5 billion at a fundingconference in Berlin next week, as its battle to preventinfectious diseases in millions of children reaches an expectedpeak.

The non-profit organisation, launched in Davos 15 years ago,aims to immunise another 300 million children between 2016 and2020, saving an estimated 5-6 million lives.

The economic benefits of that will be some $80 billion and$100 billion, underscoring the cost-effectiveness of vaccines asa centrepiece of public health, Chief Executive Seth Berkleytold the World Economic Forum on Thursday.

Berkley said GAVI had already received extremely strongsupport from several governments but other major donors thathave backed past funding rounds, notably the United States, haveyet to show their hand ahead of the Jan. 26-27 Berlin talks.

One factor complicating the financing request is thestrength of the dollar. GAVI buys its vaccines in the U.S.currency, while some donors will face higher costs in localcurrencies.

"We made our original requests almost seven months ago andexchange rates have dramatically changed. That is a challengethat we will have in front of us and will be discussed by thedonors," Berkley said.

GAVI, which is backed by the Bill & Melinda GatesFoundation, the World Health Organisation, the World Bank,UNICEF, donor governments and others, funds immunisationprogrammes for nations that cannot afford standard prices.

The group targets common but deadly diseases such aspneumonia, diarrhoea and cervical cancer.

GAVI uses its bulk-buying power to negotiate big pricediscounts with drugmakers like GlaxoSmithKline andPfizer, although some have argued it should strike eventougher deals with companies.

A full budget will also position GAVI to intervene inemergency situations such as Ebola, where it has already pledgedto fund vaccine purchases once products are developed.

The coming 2016-20 period will be the busiest in GAVI'shistory, as it ramps up vaccine purchases to 2.7 billion dosesfrom 2.1 billion in the preceding five years.

Beyond 2020, however, GAVI's immunisation programmes are setto tail off, as many countries with growing economies become toowealthy to be eligible for its help.

"This is peak GAVI," Berkley said. "We actually discussedwhether we should consider going out of business and we lookedat 2030 as a possible date, but the challenge is that there willstill be about 20 eligible countries, assuming the modelling iscorrect, and the majority are pretty fragile states." (Reporting by Ben Hirschler. Editing by Jane Merriman)

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