GlaxoSmithKline to freeze prices on vaccines for developing nations

GlaxoSmithKline has announced that it will be freezing the prices of its vaccines for developing countries that graduate from GAVI Alliance support over the next five years.

It will mean GAVI-eligible countries will still be able to receive vaccines against pneumococcal disease, rotavirus and cervical cancer for the lowest available price, which can often be up to 90 percent lower than the products' cost in developed nations.

This will help governments in poorer nations as they make the challenging transition to financing the full cost of their own local vaccination programmes. By 2020, it is expected that 22 countries with growing economies will graduate from GAVI support. 

Since its formation in 2000, the GAVI Alliance has helped to fund the immunisation of 440 million children in some of the world's poorest countries. The graduation scheme allows the organisation to focus its support on the most underprivileged areas.

Sir Andrew Witty, chief executive officer of GlaxoSmithKline, said: "I'm pleased that we are able to offer governments a price freeze to help ensure that children continue to be protected by national immunisation programme."

The company produces vaccines for a wide range of diseases, including malaria. It strengthened its capabilities in this field through the acquisition of Okairos last year.