Price Reporting Mechanism (PRM): Lessons learnt and how to use the evidence from the PRM Technical Briefing Seminar for Consultants on Procurement and Supply Management for HIV, TB and Malaria 30 January 2006 Copenhagen Peter Graaff, AMDS, HIV

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3 AMDS Introduction and Purpose of the GPRM The Global Price Reporting Mechanism is a database that consolidates information (price, volume, …) of ARV drugs Information on other drugs (such as TB or malaria drugs) is included when available but is not actively sought

4 AMDS Background Procurement decision makers should know their potential suppliers and the price they should expect to pay for their products Existing information sources include: "Sources and prices" by UNICEF/WHO/MSF/UNAIDS "Untangling the web" by MSF The GFATM Price Reporting Mechanism Indicative prices announced by procurement organisations (IDA) or foundations (CHAI) With exception of the GFATM Price Reporting Mechanism these information tools record quotes by suppliers and don't record volumes transacted. The GFATM Price Reporting Mechanism has real transaction prices and volumes transacted but Suffers from serious underreporting GFATM represents only part of all transactions

5 AMDS Objectives of the GPRM Put a significant volume of developing country transaction prices of ARVs in the public domain Inform procurement decisions by characterising the different players (suppliers /buyers), their weight in the market and the price they are obtaining/charging Collect essential information to forecast the future of the developing country ARV market

6 AMDS Outcomes: 1) Process Cooperation of main partners (GFATM, UNICEF, IDA, CPS) secured Cooperation of secondary partners (MSH, JSI, Clinton Foundation CHAI, Crown Agents, CHMP) secured and growing No negative feedback from big pharmaceutical companies, positive feedback from several generic companies

7 AMDS Outcomes: 2) Products User-friendly web based searchable database developed and online since June 2005 The GPRM is the biggest database of ARVs transaction prices available in the public domain More than USD 160 million of procurement recorded, or about 1/3 of ARV transactions in developing countries FTP protocol enabling main partners to upload data automatically operational Automated report generator operational Quarterly summary report launched

8 AMDS Global price reporting mechanism

9 AMDS Quarterly summary report

10 AMDS Strengths Process Strength Consolidation of WHO's collaboration with significant partner organizations Technical strengths Size, coverage, details and volume of the database Easy access and report generation

11 AMDS Weaknesses The database contains only wholesale price Incoterms are inconsistently reported Sampling bias: most providers of data are rational, cost effective procurement organizations Data verification limited We need country level reporting

12 AMDS 2006 planning for summary report releases Added features: guidance on how to use the information 2 nd Edition Added features: characterization of pricing behavior by company 3rd Edition Added features: PQ/ICH/PICS regulatory status of products; manufacturers' contacts 4th Edition FebMarchAprilMayJanJuneSepAugJulyOctNovDec EBWHAInt Conf on AIDS World AIDS day: 1 Dec.

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