Buying vaccines through a single payment as a proxy for procuring vaccines via formularies

Abstract

Abstract In this study, we evaluate the possibility of making vaccines more affordable without impacting profits by exploring the effects of selling vaccines as formularies or baskets of vaccines bundled in the same sale. Assuming that countries are grouped into market segments for tiered pricing purposes and are coordinated by a single decision-maker, we propose selling vaccines as formularies by changing their pricing scheme so that buyers make a single lump-sum payment to each vaccine producer for their vaccines. Results show that changing the pricing scheme can improve affordability.