Global Fund Enters Agreement to Save $100 Million in Drug Costs

Global Fund Enters Agreement to Save $100 Million in Drug Costs

The Global Fund to Fight AIDS, Tuberculosis and Malaria has announced a new agreement for purchasing HIV medication that is expected to save it close to $100 million over two years and enable it to provide antiretroviral drugs to an additional four hundred thousand people.

Using a pooled procurement mechanism through which the purchase of high-volume drugs is bundled with low-volume ones, the Global Fund has entered an agreement with eight suppliers that will reduce prices, accelerate delivery, and stabilize the long-term supply of the drugs. The approach also yields greater transparency, reduces risks and expenses for countries that implement programs to treat people with HIV, and delivers better HIV medication options for children. As of late 2014, the fund had provided financial support for programs that put 7.3 million people on antiretroviral medication, a 20 percent year-over-year increase.

In addition to negotiating the agreement, the fund has conducted detailed analyses of suppliers, visited manufacturers of both finished and raw materials, and built on the efforts of key partners such as the Bill & Melinda Gates Foundation, the Clinton Health Access Initiative, the Government of South Africa, Médecins Sans Frontières/Doctors Without Borders, the Pan American Health Organization, and the United States President's Emergency Plan for AIDS Relief, as well as UNICEF, UNITAID, USAID, and the World Health Organization.

"As well as expanding the supply of life-saving medicines, our new approach will provide deep and sustained savings, to the benefit of people living with HIV across the world," said Global Fund chief procurement officer Christopher Game. "Just as important, we are shaping the market for these lifesaving drugs to make them more effective, reliable, and affordable for people who really need it."

"New Approach on Buying HIV Drugs Will Save $100 Million." Global Fund to Fight AIDS, Tuberculosis and Malaria Press Release 12/11/2014.