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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Strategic information

Price Information System

Patent Status Database

ARV Market Intelligence

Inform Local Productionof ARVs

Market Forecast

AMDS website

Regulatory Status Database

API price, capacity &quality/specification info

ARV production costing

Global ARV price reporting mechanism

http://www.who.int/3by5/amds/price/hdd/

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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

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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

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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

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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

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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

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Global price reporting mechanism

http://www.who.int/3by5/amds/price/hdd/

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Quarterly summary report

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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

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Weaknesses

The database contains only wholesale price Incoterms are inconsistently reportedSampling bias: most providers of data are

rational, cost effective procurement organizations

Data verification limited

We need country

level reporting

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2006 planning for summary report releases

Added features: guidance on how to use the information

2nd Edition 2nd Edition

Added features: characterization

of pricing behavior by

company

3rd Edition3rd Edition

Added features: PQ/ICH/PICS

regulatory status of products;

manufacturers' contacts

4th Edition4th Edition

Feb March April May Jan June Sep Aug July Oct Nov Dec

EB WHA Int Conf on AIDS

World AIDS day:

1 Dec.

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For further information please visit the AMDS website

http://www.who.int/3by5/amds/en/

or send an e-mail to AMDS@who.int