Advance Market Commitment (AMC)
The Advanced Market Commitment (AMC) is a legally binding fund to incentivize R&D through a guaranteed purchase commitment. Funding groups agree to help pay for the purchase of a currently unavailable vaccine at a given price if the product meets agreed technical specifications which are set with the health needs of low income countries in mind. This induces developers to complete the product’s development and scale up production to the funder’s needs. A pilot AMC has been implemented for an improved pneumococcal vaccine appropriate for the developing world. There are on-going discussions of whether an AMC could be used for products in an earlier phase of development and for non-health innovations.
Center for Global Development, Michael Kremer, UK government
Advance Market Commitments for Vaccines
Barder, Owen, Michael Kremer and Ruth Levine. Making Markets for Vaccines: Ideas to action. The report of the Center for Global Development Advance Market Commitment Working Group. Washington, D.C.: Center for Global Development, 2005. Available here.