GlaxoSmithKline Commends $1.5 Billion Advance Market Commitment For Pneumococcal Vaccines

GlaxoSmithKline commended the governments of Canada, Italy, Norway, and the United Kingdom, as well as the World Bank, for agreeing to establish a pilot Advance Market Commitment to purchase and distribute new pneumococcal vaccines for the world's poorest children.

"This innovative financing mechanism is a huge step forward and has the potential to save millions of lives," said Jean StГ©phenne, President of GlaxoSmithKline Biologicals, the Global Vaccine Division of GlaxoSmithKline. "It sets the stage for a "win-win" situation: for donor countries, for vaccine manufacturers and, most of all, for the world's children," he added.

"This shows great vision on the part of the governments of Canada, Italy, Norway, and the United Kingdom, as well as the World Bank. We look forward to working with the World Bank and donor governments on the details of the plan."

GSK's pneumococcal vaccine candidate, which is in late-stage development, targets the most important prevailing pneumococcal strains worldwide. It includes three serotypes that are not contained in any currently available pneumococcal vaccine, and are of special importance in the developing world. And, these particular serotypes maybe associated with a higher risk of hospitalization, severe pneumonias, and meningitis outbreaks in Africa. GSK's vaccine candidate also targets a second pathogen, non-typable Haemophilus influenzae, known to be a major cause of ear infections worldwide.

Advance market commitments, or AMCs, are designed to speed the development of new vaccines and to accelerate their distribution to the world's poorest countries. They are meant to help end the 15 to 20 year delay it has traditionally taken vaccines to reach developing countries. By guaranteeing the size of the purchase commitment, AMCs are meant to give vaccine makers the confidence to develop new vaccines, and to build enough production capacity to satisfy global demand.

AMCs have moved from academic theory to the real world with remarkable speed. Last year, Scientific American magazine cited the "unprecedented creativity" of the idea, which has garnered broad support in global public health circles. The pilot AMC for pneumococcal vaccines extends the public-private engagement to the distribution of new vaccines, a trend that began in earnest with the creation of the GAVI Alliance.

Jean StГ©phenne said he hoped a successful pilot AMC for pneumococcal vaccines would pave the way for similar commitments by donors to purchase future vaccines. "In particular, the AMC mechanism would be ideal for vaccines against AIDS, malaria and TB," he said.

GlaxoSmithKline is one of the leaders in the pharmaceutical industry in R&D for diseases of the developing world. GSK is the only company developing medicines to treat, and vaccines to prevent, the WHO's three priority infectious diseases: AIDS, malaria, and TB. GSK conducts a portion of its developing country disease R&D through public-private partnerships with a range of groups supported by donor governments and such charities as the Bill & Melinda Gates Foundation.

GSK is also a leading supplier to the developing world through UNICEF and GAVI. The company pioneered tiered pricing for its vaccines, with lower pricing for the public sectors of the world's poorest countries

Background on Pneumococcus

Pneumococcus is a bacterium that causes meningitis, pneumonia, and ear infections. It kills 1.6 million people every year, including a million children under the age of five, according to WHO. In clinical trials, GSK's vaccine candidate appears to be effective against pneumococcal diseases with greatest incidence in the developing world. It is expected that further studies will confirm the protection potential of GSK's vaccine candidate against acute otitis media caused by non-typable Haemophilus influenzae. GSK expects to file its vaccine to regulatory authorities by end 2007.

About GSK Biologicals

GSK is one of the world's leading vaccine manufacturers. The majority of GSK's activities in the field of vaccine research, development and production are conducted at its Biologicals headquarters in Rixensart, Belgium. GSK employs more than 1,500 research scientists devoted to discovering new vaccines and developing more cost-effective and convenient combination products to prevent infections that cause serious medical problems worldwide.

In 2005, GSK distributed more than 1.2 billion doses of vaccines to 165 countries in both the developed and developing world, more than 3 million doses per day.

GlaxoSmithKline is one of the world's leading research-based pharmaceutical and health care companies. GlaxoSmithKline is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For company information visit http://www.gsk.com.

The governments of Canada, Italy, Norway, and the United Kingdom, along with the World Bank, have agreed to establish a US$1.5 billion pilot Advance Market Commitment (AMC) to stimulate the development of new pneumococcal vaccines for the world's poorest countries. The formal announcement will be made in Rome on Friday, 9 February.

Pneumococcus is a bacterium that causes meningitis, pneumonia, and ear infections. It kills 1.6 million people every year, including a million children under the age of five, according to the World Health Organisation.

What follows is a reaction statement from GSK Biologicals, the Global Vaccine Division of GlaxoSmithKline PLC. GSK is one of the world's largest makers and developers of vaccines and is developing a new vaccine against pneumococcal disease and non-typable Haemophilus influenzae infection.

GlaxoSmithKline
http://www.gsk.com