Competition needed to curb vaccine costs

Johannesburg - A lack of competition between drug manufacturers has resulted in disproportionately expensive vaccinations, according to a report by Doctors Without Borders (MSF).

"The report... reveals this is because a handful of big pharmaceutical companies are overcharging donors and developing countries for vaccines that already earn them billions of dollars and keeping pricing information secret," said MSF spokesperson in South Africa, Julia Hill.

The report, penned by MSF’s Access campaign and titled "The Right Shot: Bringing Down Barriers to Affordable and Adapted Vaccines", was released on Tuesday.

"In South Africa, as elsewhere, adding the newest vaccines against pneumonia, diarrhoea (rotavirus or RV) and cervical cancer, all of which are disproportionately more expensive, is behind the skyrocketing costs," Hill said.

In the report a call is made for more competition in the vaccine manufacturing market to drive down prices.
"Entry of additional manufacturers to the global market will help to bring down prices and ensure adequate supply to meet global needs," the report reads.

Chinese vaccine manufacturers entering the international market could usher in a new era of competition.

"International stakeholders should do their utmost to promote this potential by creating the right legal and policy enabling environments, working to resolve any barriers to market entry, such as regulatory or patent barriers, and accelerating the entrance of these products in the international market."

In the report, deputy director general of the health department Dr Yogan Pillay comments on the implications of the status quo for South Africa.

"We introduced two new vaccines recently... and because there are only two suppliers for each vaccine, there’s no competition and we pay a premium."

A year ago, the Board of Healthcare Funders (BHF) encouraged support for proposed amendments to laws regarding medicine patents to promote access to affordable health care.

"The BHF would like to see legislative reform that allows for lower single exit price (SEP) for medicines, more generics to be used and for the private sector to be able to access medicines at the state tender price," managing director Humphrey Zokufa said at the time.

The SEP is the maximum price that can be charged for a particular medicine, excluding dispensing fees.

In the section of the Draft National Policy on Intellectual Property relating to health calls are made for the weakening of medicine patent laws. This would drive down prices for a range of medications, including anti-retrovirals and tuberculosis treatment.

Health Minister Aaron Motsoaledi last year labelled an alleged attempt to thwart the adoption of the proposed legislation as genocide.