Table 2.
Approaches for vaccine distribution and pharmaceutical companies' obligations
| Description | Principles emphasised | Evaluation | Companies' obligations | |
|---|---|---|---|---|
| Tiered pricing | Pharmaceutical companies distribute vaccines on the basis of tiered pricing, charging more to wealthy nations and less or even nothing for low-income countries | Sustainability | Insufficient vaccines are produced overall or distributed to poor countries; absence of transparency and effective accountability mechanisms | Tiered pricing among bilateral contractors; publicly disclose details of bilateral contracts |
| Global public goods | Pharmaceutical companies voluntarily waive their patent rights and engage in technology transfer; vaccines are made available to all | Optimising vaccine production; fair distribution | Might not be sustainable if pharmaceutical companies are insufficiently compensated for knowledge transfer; might target the wrong bottleneck because production know-how and capacity seem to be rate limiting rather than patents; because vaccines are not true public goods and require scarce raw materials, this approach needs complementary approaches to optimise production and achieve fair distribution | Non-enforcement of patent rights; transfer of knowledge and expertise |
| Partly bilateral | Pharmaceutical companies distribute vaccines through both bilateral contracts and to an international facility (eg, COVAX) | Optimising vaccine production; fair distribution; sustainability | For fair distribution, a principled mechanism to determine how many vaccines are reserved for bilateral agreements and how many for COVAX, a schedule for fulfilling bilateral deals, and an ethical pricing policy are needed | Allocate vaccines between bilateral contracts and the international facilities, such as COVAX, concurrently and in proportion to COVID-19 need; sell to international facilities, such as COVAX, at marginal cost for participating countries; publicly disclose details of bilateral contracts, agreements with international facilities, such as COVAX, and the schedule for fulfilling both agreements |
| Fully multilateral | Pharmaceutical companies distribute all vaccines through an international facility, such as COVAX | Fair distribution; accountability | Requires levels of international coordination and trust that do not exist; positioning the international facility as the sole distributor exposes it to greater political pressures from wealthy countries; having a single purchaser can conflict with optimising production | Refrain from making bilateral deals; publicly disclose details of the agreement with the international facility |
COVAX=COVID-19 Vaccines Global Access.