Publication

The G-8 is considering an “advance market commitment” to purchase vaccines against diseases concentrated in low-income countries as a way to spur research and development on vaccines for these diseases. The authors estimate the offer size which would make revenues similar to the revenues realized from investments in typical existing commercial pharmaceutical products as well as the degree to which various model contracts and assumptions would affect the cost-effectiveness of such a commitment. They also make adjustments for lower marketing costs and the risk that a developer may have to share the market with subsequent developers.