Wednesday, August 1, 2012

Differential Pricing for Vaccines

In the case of vaccines, most companies  have a three-tiered pricing structure with fully loaded market prices charged in rich countries, low prices in countries belonging to the Global Alliance for Vaccines and Immunization (GAVI), and intermediate prices in middle-income countries. However, the practice of charging higher prices in middle-income countries than in the poorest countries has been contentious. Firms argue that middle-income countries, especially upper-middle-income countries such as Brazil, have substantially greater capacity to pay for vaccines than do GAVI countries. Middle-income countries argue that their populations include many poor people and the prices they pay should be not too far from what the least-developed countries are paying.

     Prices are in $

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