International health alliance says pushes vaccine costs down

GAVI's programmes involve World Health Organisation-approved shots made by GlaxoSmithKline, Crucell, and the Indian drugmakers Shantha, owned by Sanofi-Aventis, and Panacea.

In 2006, UNICEF bought less than 50 million doses of pentavalent vaccine, it said, but this year it is projected to buy around 120 million doses -- a demand seen rising by about another 10 million doses each year until 2012.

GAVI's chief executive Julian Lob-Levyt said the price drop had come later than he had hoped but added: "This is the GAVI effect at work: encouraging and pooling growing demand from countries, attracting new manufacturers and increasing competition to drive down prices."

GAVI, which is supported by the WHO, the World Bank, UNICEF, vaccine makers and research centres and the Bill and Melinda Gates foundation, said 256 million children had now received vaccines through its programmes.

GAVI raises money by leveraging long-term aid commitments from countries through capital markets, with regular offerings of "vaccine bonds" organised by the International Finance Facility for Immunisation (IFFIm).

(Editing by Matthew Jones)