[e-drug] Global Fund : Deal on Mosquito Nets to yield $93 million Savings

E-DRUG: Global Fund : Deal on Mosquito Nets to yield $93 million Savings
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Dear all,

Global Fund announces -US$93 million in projected savings -equivalent to
about 40 million additional nets - for US$350 million in mosquito net
purchases over the next two years.
From this I deduct an average price of USD 2.32 per bednet.

It so happens that I have done a bit of research regarding the purchase of
impregnated bednets.

In March 2015 I found in Global Fund's Price and Quality Reporting (PQR) Tool
(http://www.theglobalfund.org/en/pqr/)
a median price of USD 3.56 and an average price of USD 3.69 (minimum price of
USD 2,34 and maximum USD 9,99) for bednets purchased in the period 2010 to
2014 with a total purchase value of USD 240 million. The price of USD 2.32
per bednet reflects a 37% decrease compared with the average price I found
for the period 2010 to 2014, which is indeed similar as to what the article
states: 'achieving sharply lower prices for nets- a 38 percent reduction
from 2013'

So far, so good. However, is this the complete story? Should we not also be
informed about the production costs of bednets and how these relate to the
prices that have been obtained?

I have the impression that suppliers have made excessive profits on bednets since their introduction more than 10 years ago and continue to do so despite the announced price reductions. I cannot imagine that it would be hard to establish the real costs of bednets
and a subsequent purchase price that would be reasonable for all.

Maybe The Global Fund could use its weight to establish the full picture related to
bednets including their manufacturing costs?

Best regards,

Rob Verhage
hera Senior Partner - Pharmaceutical systems consultant
Tawajakoerastraat 4
Paramaribo
Suriname
rob verhage <verhager@gmail.com>