tackling a longstanding development problem
Advance Market Commitment for vaccines (AMC) is an innovative funding mechanism to incentivize vaccine makers to produce suitable and affordable vaccines needed in low-income countries. Advance Market Commitment tackles a longstanding development problem – persistent market failure to develop and produce vaccines needed in poor countries due to perceptions of insufficient demand and market uncertainty. In an AMC, donors commit funds to guarantee the price of vaccines once they have been developed. These financial commitments provide vaccine manufacturers with the incentive they need to invest in vaccine research and development, and to expand manufacturing capacity. In exchange, companies sign a legally-binding commitment to provide the vaccines at a price affordable to developing countries in the long term.