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The Woodrow Wilson School’s Graduate Policy Workshop<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong><br />

<strong>Global</strong> <strong>Vaccine</strong> Needs<br />

Evaluation of the Merck-Wellcome Trust Hilleman Labora<strong>to</strong>ries<br />

Siddharth Chatterjee, Erica Frenkel, Gastón Gertner,<br />

Hope Glassberg, Amy Lin, Talal Mir, Chloe Poyn<strong>to</strong>n, Mark Roland,<br />

Elie Teichman, Ben Tiede<br />

Advisor: Professor Adel Mahmoud<br />

January 2011


• Dr. Neeraj Aggarwal, Group Leader,<br />

<strong>Vaccine</strong>s at Biopharmaceutical Research<br />

Centre, Panacea Biotech, New Delhi, India<br />

• Dr. Peter Agre, Nobel Laureate, Direc<strong>to</strong>r<br />

of the Johns Hopkins Malaria Research<br />

Institute<br />

• Dr. Ted Bianco, Direc<strong>to</strong>r of Technology<br />

Transfer, Wellcome Trust, London, U.K.<br />

• Dr. John Clemens, Direc<strong>to</strong>r General,<br />

International <strong>Vaccine</strong> Institute, Seoul, South<br />

Korea<br />

• Dr. Cecil Czerkinsky, Deputy Direc<strong>to</strong>r<br />

General, Labora<strong>to</strong>ry Science Division,<br />

International <strong>Vaccine</strong> Institute, Seoul, South<br />

Korea<br />

• Dr. Albinus D’Sa, Deputy Direc<strong>to</strong>r, India<br />

Office, US Food and Drug Administration<br />

Office of International Programs, New<br />

Delhi, India<br />

• Dr. Ken Earhart, Country Direc<strong>to</strong>r,<br />

Centers for Disease Control and Prevention<br />

(CDC), U.S. Embassy, New Delhi, India<br />

• Dr. Jeremy Farrar, Direc<strong>to</strong>r of the Oxford<br />

University Clinical Research Unit (OUCRU)<br />

in Ho Chi Minh City, Vietnam<br />

• Dr. Michael Favarov, Deputy Direc<strong>to</strong>r<br />

General, Translational Research Division,<br />

International <strong>Vaccine</strong> Institute, Seoul, South<br />

Korea<br />

• Dr. Mark Feinberg, Vice President<br />

for Medical Affairs and Policy in Merck<br />

<strong>Vaccine</strong>s and Infectious Diseases at Merck &<br />

Co., Inc.<br />

• Dr. N.K. Ganguly, Former Direc<strong>to</strong>r<br />

General of Indian Council of General<br />

Research, New Delhi, India<br />

Acknowledgements<br />

Members of the task force would like <strong>to</strong> express gratitude <strong>to</strong> the many experts who generously shared their<br />

insights and opinions during the preparation of this report. We thank the following individuals who found the<br />

time <strong>to</strong> meet with us in various locations across the world, including:<br />

• Dr. Julie Gerberding, President, <strong>Vaccine</strong>s,<br />

Merck & Co. Inc., West Point, PA, U.S.A.<br />

• Professor David Goldblatt, Professor of<br />

Vaccinology and Immunology and Head of<br />

the Immunobiology Unit, Institute of Child<br />

Health, University College London, U.K.<br />

• Professor Andy Hall, Chairman, UK<br />

Joint Committee on Vaccination and<br />

Immunisation, Professor of Epidemiology,<br />

London School of Hygiene and Tropical<br />

Medicine, London, U.K.<br />

• Dr. Pauline Harvey, Direc<strong>to</strong>r, CDC<br />

<strong>Global</strong> AIDS Program, New Delhi, India<br />

• Mr. Seemant Jauhari, CEO at Apollo<br />

Hospitals Education & Research, Gurgaon,<br />

India<br />

• Dr. Ajay Khera, Deputy Commissioner,<br />

MCH Ministry of Health & Family Welfare,<br />

Government of India Ministry of Foreign<br />

Affairs and Trade, New Delhi, India<br />

• Mr. Kweon Ki-hwan, Direc<strong>to</strong>r, Human<br />

Rights & Social Affairs Division, Ministry<br />

of Foreign Affairs and Trade, Republic of<br />

Korea, Seoul, South Korea<br />

• Dr. Danuta Kro<strong>to</strong>ski, Acting Health<br />

Attache, US Embassy, New Delhi, India<br />

• Dr. Anjali Kulkarni, Consultant<br />

Neona<strong>to</strong>logist, Academic Coordina<strong>to</strong>r<br />

Apollo Centre for Advanced Pediatrics, New<br />

Delhi, India<br />

• Dr. Altaf Lal, Chief Executive Officer<br />

of the Merck Wellcome Trust Hilleman<br />

Labora<strong>to</strong>ries<br />

• Dr. Renu Lal, Influenza Coordina<strong>to</strong>r,<br />

CDC, US Embassy, New Delhi, India<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


• Ms. Goan Yeoun Moon, Senior<br />

Administrative Manager, International<br />

<strong>Vaccine</strong> Institute, Seoul, South Korea<br />

• Dr. Shirshendo Mukherjee, Strategic<br />

Adviser, R&D Initiative, India Technology<br />

Transfer, Wellcome Trust, New Delhi, India<br />

• Mr. Kuldeep Negi, Assistant Manager,<br />

Corporate Communications at Panacea<br />

Biotech, New Delhi, India<br />

• Professor Sang-Dai Park, Professor<br />

Emeritus, Seoul National University, Seoul,<br />

South Korea<br />

• Dr. Vinod Paul, Chief of Pediatrics, All<br />

India Institute of Medical Science (AIIMS),<br />

New Delhi, India<br />

• Ms. Sujatha Rao, Secretary of Health<br />

and Family Welfare, Ministry of Health,<br />

Government of India, New Delhi, India<br />

• Dr. Bina Rawal, Head of Medical Affairs,<br />

Wellcome Trust, London, U.K.<br />

• Ms. Sonia Singh, Executive Assistant <strong>to</strong><br />

the CEO, Hilleman Labora<strong>to</strong>ries, New<br />

Delhi, India<br />

• Dr. Greg Smith, Production and Quality<br />

Control Coordina<strong>to</strong>r, International <strong>Vaccine</strong><br />

Institute, Seoul, South Korea<br />

• Professor Peter Smith, Professor of<br />

Tropical Epidemiology, London School of<br />

Hygiene and Tropical Medicine (Wellcome<br />

Trust Governor), London, U.K.<br />

• Dr. Jimmy Whitworth, Head of<br />

International Activities, Wellcome Trust,<br />

London, U.K.<br />

• Dr. Thomas Wierzba, Science<br />

Coordina<strong>to</strong>r, International <strong>Vaccine</strong> Institute,<br />

Seoul, South Korea<br />

Finally, we would like <strong>to</strong> especially thank Dr. Julie<br />

Gerberding, President of <strong>Vaccine</strong>s at Merck & Co.,<br />

Inc. Through this task force, she and her team have<br />

introduced us <strong>to</strong> a fascinating and tremendously important<br />

project, for which we are truly grateful.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


Student Authors<br />

• Siddharth Chatterjee is a Master in<br />

<strong>Public</strong> Policy (MPP) candidate at Prince<strong>to</strong>n<br />

focusing on international development and<br />

global health policy. Prior <strong>to</strong> coming <strong>to</strong><br />

Prince<strong>to</strong>n, Sid served the United Nations<br />

(UN) in Bosnia-Herzegovina, Iraq, Sudan,<br />

Indonesia, Kenya and Somalia. Sid worked<br />

with governments and local partners <strong>to</strong><br />

ensure that children received immunizations<br />

and had access <strong>to</strong> clean water and sanitation,<br />

primary education, and protection.<br />

• Erica Frenkel is a second-year Master in<br />

<strong>Public</strong> Affairs (MPA) candidate at Prince<strong>to</strong>n<br />

focusing on international development and<br />

pursuing a certificate in Health and Health<br />

Policy. Prior <strong>to</strong> coming <strong>to</strong> Prince<strong>to</strong>n, Erica<br />

spent three years at the Kaiser Family<br />

Foundation working in media partnerships<br />

and trainings around global health<br />

(primarily HIV/AIDS) in Latin America,<br />

the Caribbean, and South Asia.<br />

• Gastón Gertner is a second-year<br />

MPA candidate at Prince<strong>to</strong>n focusing<br />

on international development. Prior <strong>to</strong><br />

beginning his Master’s at Prince<strong>to</strong>n, Gastón<br />

worked as a Research Analyst for Ipsos,<br />

doing survey research consulting in public<br />

opinion, policy evaluation and market<br />

research in Argentina.<br />

About the Task Force<br />

• Hope Glassberg is a second-year MPA<br />

candidate at Prince<strong>to</strong>n focusing on domestic<br />

politics and pursuing a certificate in Health<br />

and Health Policy. Prior <strong>to</strong> coming <strong>to</strong><br />

Prince<strong>to</strong>n, she worked at the Council of<br />

State Governments Justice Center, a non-<br />

profit working <strong>to</strong> improve collaboration<br />

between criminal justice and mental health<br />

agencies at the state level.<br />

• Amy Lin is a second-year MPA candidate<br />

at Prince<strong>to</strong>n focusing on international<br />

relations. Prior <strong>to</strong> beginning her Master’s at<br />

the Woodrow Wilson School, Amy worked<br />

in Washing<strong>to</strong>n D.C. for the late Sena<strong>to</strong>r<br />

Edward M. Kennedy in his Labor Policy<br />

Office on the Senate Health, Education,<br />

Labor and Pensions Committee.<br />

• Talal Mir is a second-year MPA candidate<br />

at Prince<strong>to</strong>n focusing on international<br />

development and health policy. Before<br />

coming <strong>to</strong> Prince<strong>to</strong>n he worked in the U.S.<br />

Congress where, in the office of Sena<strong>to</strong>r<br />

John McCain, he managed a legislative<br />

portfolio that included health care policy.<br />

• Chloe Poyn<strong>to</strong>n is a second-year MPA<br />

candidate at Prince<strong>to</strong>n focusing on<br />

international development. Before coming<br />

<strong>to</strong> Prince<strong>to</strong>n, Chloe worked on issues of<br />

forced migration in Burundi, Sierra Leone<br />

and Kosovo. Most recently, she worked<br />

for UNDP in Sierra Leone as an Elec<strong>to</strong>ral<br />

Advisor.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


• Mark Roland is a second-year MPA<br />

candidate at Prince<strong>to</strong>n focusing on<br />

international development and pursuing<br />

a certificate in Health and Health Policy.<br />

Prior <strong>to</strong> enrolling at the Woodrow Wilson<br />

School, Mark spent several years working<br />

for the Office of Medicaid in Massachusetts,<br />

helping <strong>to</strong> implement policies aimed at<br />

reducing health disparities.<br />

• Elie Teichman is a second-year MPA<br />

candidate at Prince<strong>to</strong>n focusing on<br />

international development. Before coming <strong>to</strong><br />

Prince<strong>to</strong>n, Elie spent three years serving with<br />

the Peace Corps in Romania and before that<br />

worked in the office of former U.S. Senate<br />

Majority Leader Bill Frist, M.D.<br />

• Ben Tiede is an MPP candidate at<br />

Prince<strong>to</strong>n. He enrolled at the Woodrow<br />

Wilson School after recently finishing<br />

a Ph.D. in Prince<strong>to</strong>n’s Department of<br />

Molecular Biology. His Ph.D. research<br />

focused on studying adult stem cells and<br />

breast cancer, particularly on trying <strong>to</strong><br />

understand the connection between breast<br />

cancer and pregnancy.<br />

Project Advisor<br />

• Adel A. F. Mahmoud, M.D., Ph.D, is a<br />

professor who is jointly appointed at the<br />

Woodrow Wilson School of <strong>Public</strong> and<br />

International Affairs and the Department of<br />

Molecular Biology at Prince<strong>to</strong>n University.<br />

Previously, Professor Mahmoud served as<br />

president of Merck <strong>Vaccine</strong>s from 1999 <strong>to</strong><br />

2005. At Merck he was responsible for the<br />

company’s vaccine program that resulted<br />

in four new vaccines for rotavirus; HPV;<br />

shingles; and a combination vaccine for<br />

measles, mumps, rubella, and varicella.<br />

Mahmoud was Chairman of Medicine<br />

and Physician-in-Chief at Case Western<br />

Reserve University and University Hospitals<br />

of Cleveland (1987-1998), and Chief of<br />

Geographic Medicine (1977-1987).<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


Executive Summary<br />

This report offers an evaluation of Merck-Wellcome Trust Hilleman Labora<strong>to</strong>ries (Hilleman Labora<strong>to</strong>ries or<br />

the labs), a public private venture launched in 2009 by the Wellcome Trust and Merck & Co., Inc. (Merck),<br />

intended <strong>to</strong> contribute <strong>to</strong> the development of high-impact, affordable vaccines for people in developing coun-<br />

tries. As a starting point, this report offers context on the global burden of infectious disease, borne dispropor-<br />

tionately by people living in the developing world, and discusses related challenges in developing, deploying,<br />

and financing vaccines <strong>to</strong> address this burden. This report reviews key findings from meetings with biomedi-<br />

cal and public health experts, stakeholders, and health practitioners about the Hilleman Labora<strong>to</strong>ries and its<br />

potential role in the vaccine development process. Using this information, members of the task force crafted<br />

a set of recommendations, reviewed below, <strong>to</strong> guide the start-up and establishment of the labs. While these<br />

recommendations may reference scientific considerations, in light of the authors’ academic emphasis, the re-<br />

port is primarily focused on policy and practices. Finally, the report calls attention <strong>to</strong> challenges the Hilleman<br />

Labora<strong>to</strong>ries’ leadership may face as the labs begin operations.<br />

Section Recommendations<br />

Hilleman Labora<strong>to</strong>ries leadership should communicate the labs’ underlying goals<br />

<strong>to</strong> the public.<br />

<strong>Public</strong> Identity Hilleman Labora<strong>to</strong>ries leadership should draw upon funders for legitimacy<br />

in certain settings, but stake out a unique position apart from project funders,<br />

particularly when working with local partners and NGOs.<br />

In the short term, the Hilleman Labora<strong>to</strong>ries should focus primarily on projects<br />

that appear <strong>to</strong> have a high likelihood for success.<br />

In the longer term, the labs should broaden their project scope <strong>to</strong> mitigate risk<br />

and moni<strong>to</strong>r down-market activities.<br />

Mission & Activities Hilleman Labora<strong>to</strong>ries should establish and adhere <strong>to</strong> a rigorous systematic<br />

scientific audit <strong>to</strong> continually assess its project portfolio.<br />

Offer technical training <strong>to</strong> both low-cost manufacturers (LCMs) and government<br />

regula<strong>to</strong>rs <strong>to</strong> bolster capacities <strong>to</strong> ensure a safe vaccine manufacturing process<br />

and marketing success.<br />

Strengthen relationships with Indian government ministries and departments<br />

that oversee vaccine production and policies <strong>to</strong> secure the Hilleman Labora<strong>to</strong>ries’<br />

long-term position in India.<br />

Hilleman Labora<strong>to</strong>ries should identify several LCMs or vaccine importers in<br />

<strong>Partnerships</strong><br />

target countries <strong>to</strong> see projects through <strong>to</strong> completion in ways that meet quality<br />

standards.<br />

Identify local and international public health experts <strong>to</strong> collect relevant<br />

epidemiological data through field surveillance.<br />

Merck and the Wellcome Trust should consider further funding of the labs <strong>to</strong><br />

ensure project completion and reduce distractions from core project development<br />

activities.<br />

Sustainability & Once products are developed, the labs should assess the potential of tiered<br />

Marketing<br />

pricing strategies so that markets in both lower and middle-income countries can<br />

access products.<br />

The Hilleman Labora<strong>to</strong>ries should communicate with and work closely with<br />

government and non-government partners <strong>to</strong> foster demand for its products.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


List of Acronyms in this Report<br />

• AIIMS – All India Institute of Medical Science<br />

• CDC – Centers for Disease Control and Prevention<br />

• EPI – Expanded Programme on Immunization (as determined by WHO)<br />

• GAVI – GAVI Alliance<br />

• GBD – <strong>Global</strong> Burden of Disease<br />

• GOK – Government of Korea<br />

• IAVI – International AIDS <strong>Vaccine</strong> Initiative<br />

• IVI – International <strong>Vaccine</strong> Institute<br />

• LCM – Low-Cost Manufacturer<br />

• MOFAT – Ministry of Foreign Affairs and Trade (in the Korean Government)<br />

• MVP – Meningitis <strong>Vaccine</strong> Partnership<br />

• OUCRU – Oxford University Clinical Research Unit<br />

• PAHO – Pan-American Health Organization<br />

• PDP - Product Development Partnership<br />

• PDPPP - Product Development <strong>Public</strong> <strong>Private</strong> Partnership<br />

• R&D – Research and Development<br />

• SIIL – Serum Institute of India, Ltd.<br />

• SNU – Seoul National University<br />

• UN – United Nations<br />

• UNDP – United Nations Development Program<br />

• UNICEF – United Nations Children’s Fund<br />

• WHO – World Health Organization<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


Table of Contents<br />

Introduction ................................................................................................................................................ 3<br />

About Hilleman Labora<strong>to</strong>ries ..................................................................................................................... 5<br />

Key Findings from Meetings ...................................................................................................................... 6<br />

Background: Disease Burden & Challenges .............................................................................................. 8<br />

Analysis of Two <strong>Vaccine</strong> PDPs ................................................................................................................. 13<br />

An Alternate Approach: Decentralized Operations ................................................................................. 16<br />

Recommendations.................................................................................................................................... 18<br />

Ongoing Challenges ................................................................................................................................. 33<br />

Conclusion ................................................................................................................................................ 35<br />

Appendix 1: Timeline of Meetings ........................................................................................................... 36<br />

Appendix 2 ............................................................................................................................................... 37<br />

References ............................................................................................................................................... 39<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


2<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


Aims of the Report<br />

This report provides information on the existing gap<br />

in vaccine coverage between high- income countries,<br />

where vaccines are often first developed, marketed<br />

and consumed, and low-income countries, where<br />

the need for vaccines is typically greatest and seldom<br />

sufficiently addressed. Based on this background re-<br />

search, and on information gathered by the members<br />

of the task force through interviews with relevant ex-<br />

perts and practitioners in the field, this report out-<br />

lines the task force’s independent recommendations<br />

for the Hilleman Labora<strong>to</strong>ries. These recommenda-<br />

tions advise the labs on <strong>to</strong>pics relating <strong>to</strong> structure,<br />

including key partnerships <strong>to</strong> form, short- and long-<br />

term planning for projects, and relationships with<br />

governments and non-governmental entities <strong>to</strong> foster<br />

demand for its products. The task force does not of-<br />

fer scientific guidance on project selection in light of<br />

the policy focus of the report’s authors, however, for<br />

information on current vaccine development innova-<br />

tions and areas of further need and research, see Ap-<br />

pendix 2. The report also addresses the task force’s<br />

concerns about the labora<strong>to</strong>ries’ mission and model<br />

for successfully and sustainably addressing the global<br />

vaccine gap.<br />

Introduction<br />

Methodology<br />

This task force was comprised of Masters students<br />

at the Woodrow Wilson School for <strong>Public</strong> and Inter-<br />

national Affairs at Prince<strong>to</strong>n University and was led<br />

by Professor Adel Mahmoud, Professor in the Wood-<br />

row Wilson School and the Department of Molecu-<br />

lar Biology. Under Professor Mahmoud’s leadership,<br />

the students received instruction on the science un-<br />

derlying the global infectious disease burden, public<br />

health challenges facing low-income countries, and<br />

the policy landscape affecting vaccine production<br />

and manufacturing. The students visited and inter-<br />

viewed experts at the Wellcome Trust in London and<br />

at Merck in West Point, PA. Subsequently, the group<br />

divided <strong>to</strong> conduct further interviews with stakehold-<br />

ers, experts, and other relevant players in New Delhi,<br />

India, and <strong>to</strong> learn more about the public-private<br />

partnership model for vaccines by speaking with<br />

the leadership of the International <strong>Vaccine</strong> Institute<br />

(IVI) in Seoul, South Korea.<br />

In addition <strong>to</strong> leaders at IVI, task force members also<br />

interviewed experts and practitioners from the Indi-<br />

an Ministry of Health, private health care providers<br />

in India, a biotechnology company in India, health<br />

care practitioners, and Dr. Altaf Lal, the Chief Ex-<br />

ecutive Officer of Hilleman Labora<strong>to</strong>ries. The task<br />

force also met with an academic and practicing ex-<br />

pert on vaccines, and <strong>to</strong>ured the Gardasil plant at<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

3


4<br />

Merck <strong>to</strong> view first-hand the vaccine manufacturing<br />

process. For a complete list and timeline of meetings,<br />

see Appendix 1.<br />

After synthesizing findings from academic literature<br />

on vaccines and the meetings described above, the<br />

task force crafted a core set of recommendations and<br />

associated action items for the labs, which are pre-<br />

sented in this report.<br />

Structure of the Report<br />

The report first presents key findings from the inter-<br />

views, which are divided in<strong>to</strong> the following sections:<br />

public identity, mission & activities, partnerships and<br />

sustainability & marketing. Next, the report covers<br />

background information on the current landscape<br />

of the global burden of infectious disease, product<br />

development and delivery, safety and delivery chal-<br />

lenges, limitations, as well as an evaluation of two<br />

public-private partnerships focused on vaccine devel-<br />

opment. Finally, the report offers specific recommen-<br />

dations, categorized by the same <strong>to</strong>pics as the find-<br />

ings above. Each recommendation includes specific<br />

action items <strong>to</strong> help the labs’ leaders meet overarch-<br />

ing goals.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


In September 2009, representatives from Merck, the<br />

Wellcome Trust, and the Hilleman Labora<strong>to</strong>ries an-<br />

nounced their vision <strong>to</strong> establish the labs <strong>to</strong> develop<br />

vaccines that will address diseases prevalent in low-<br />

income countries. The partners plan <strong>to</strong> use the labs<br />

both <strong>to</strong> develop new vaccines and <strong>to</strong> optimize exist-<br />

ing vaccines for better delivery in developing country<br />

contexts. The Hilleman Labora<strong>to</strong>ries represent the<br />

first time a research charity and a pharmaceutical<br />

company have partnered <strong>to</strong> form a separate joint<br />

venture with equally shared funding and decision-<br />

making rights. This venture will benefit from the<br />

ability <strong>to</strong> leverage Merck’s expertise in developing<br />

vaccines alongside the Wellcome Trust’s experience<br />

in high-quality, global biomedical research. Hille-<br />

man Labora<strong>to</strong>ries will not engage in discovery re-<br />

search but will focus specifically on Phases I and II<br />

of product development and transfer work <strong>to</strong> other<br />

manufacturing partners <strong>to</strong> complete the product de-<br />

velopment process and ensure product affordability.<br />

In various situations, Merck will have preferred op-<br />

portunity <strong>to</strong> be a commercial partner once products<br />

are developed.<br />

About Hilleman Labora<strong>to</strong>ries<br />

The labs will operate as a not-for-profit entity, with a<br />

strong emphasis on attaining a sustainable business<br />

model. Funding of the Hilleman Labora<strong>to</strong>ries opera-<br />

tions will come from a combination of core funding<br />

from the founders, third-party grants, and other rev-<br />

enue flows. Merck and the Wellcome Trust’s initial<br />

<strong>to</strong>tal contribution will be 90 million British Pounds<br />

over seven years. Hilleman Labora<strong>to</strong>ries leaders<br />

hope that, over time, the labs will receive revenue<br />

from products and that such revenue will be sufficient<br />

<strong>to</strong> sustain operations. Merck and the Wellcome Trust<br />

have agreed that any compensation received by the<br />

Hilleman Labora<strong>to</strong>ries will be reinvested in support<br />

of its overall mission.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

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6<br />

In Fall 2010, members of the task force conducted a<br />

variety of meetings in Prince<strong>to</strong>n, London, New Del-<br />

hi, and Seoul <strong>to</strong> discuss the Hilleman Labora<strong>to</strong>ries<br />

(see Appendix 1 for the list of meetings). Findings<br />

from these meetings were used <strong>to</strong> craft recommenda-<br />

tions in the following areas, highlighted in the previ-<br />

ous section: public identity, mission & activities, part-<br />

nerships, and sustainability & marketing. Findings by<br />

subject area are listed below.<br />

<strong>Public</strong> Identity<br />

• Experts noted the importance of bringing ac-<br />

ademic discoveries in biotechnology <strong>to</strong>gether<br />

with industry <strong>to</strong> foster translational research<br />

and believe that the labs may fill an impor-<br />

tant niche in this area.<br />

• Several individuals interviewed for this report<br />

in India, while very interested in the labs after<br />

learning of them, were not previously aware<br />

of the labs or indicated uncertainty about the<br />

intended scope of work, particularly beyond<br />

Phase II.<br />

Key Findings from Meetings<br />

• Some experts and practitioners raised a cer-<br />

tain level of scepticism regarding Merck’s in-<br />

volvement with a not-for-profit venture.<br />

Mission & Activities<br />

• The labs should most likely not undertake<br />

projects that address the “big three” diseases<br />

(HIV, malaria, tuberculosis) because of exist-<br />

ing resources and competition.<br />

• Over multiple meetings, there was a general<br />

consensus that heat stabilization vaccine tech-<br />

nology would be a valuable contribution in<br />

developing country contexts. This innovation<br />

could even be useful in countries with cold-<br />

chain capacity, as it could offer cost-savings<br />

on the delivery side.<br />

• Experts also expressed the need for novel,<br />

needleless delivery systems.<br />

<strong>Partnerships</strong><br />

• <strong>Partnerships</strong> that bring <strong>to</strong>gether industry<br />

and academia can help refocus vaccine re-<br />

search on neglected diseases. Governments<br />

in intended markets as well as private sec<strong>to</strong>r<br />

entities must be integrated in<strong>to</strong> the process<br />

<strong>to</strong> build capacity, facilitate emergence of a<br />

sustainable market, and reduce beneficiary<br />

countries’ dependence on philanthropy.<br />

• Collaborating with international organiza-<br />

tions, like the GAVI Alliance and WHO,<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


among others, rather than competing with<br />

them, is important <strong>to</strong> establishing an interna-<br />

tional presence in vaccine development.<br />

• Having multiple low-cost manufacturers<br />

(LCMs) can insulate the vaccine supply from<br />

cross-national political tensions and ensure<br />

affordable market prices for vaccines in the<br />

developing world.<br />

• A good relationship with the Indian govern-<br />

ment can provide vital day-<strong>to</strong>-day opera-<br />

tional support and strengthen the long-term<br />

sustainability of the Hilleman Labora<strong>to</strong>ries,<br />

for example, through favorable tax incentives<br />

or government subsidies. Close partnerships<br />

with government can help uncover potential<br />

problems, like the absence of a reliable cold-<br />

chain and lack of record-keeping capacity, at<br />

an early stage and allow parties <strong>to</strong> design ef-<br />

fective interventions.<br />

• Hilleman Labora<strong>to</strong>ries leaders should con-<br />

sider partnering with local and international<br />

health experts in epidemiological surveillance<br />

<strong>to</strong> gain a more robust understanding of dis-<br />

ease prevalence.<br />

Sustainability & Marketing<br />

• Early in the process, the labs should iden-<br />

tify alternate funding sources other than the<br />

founding donors and be wary of relying <strong>to</strong>o<br />

heavily on any one donor.<br />

• Given the high rate of growth of the middle<br />

class in India, it is estimated that the private<br />

market for vaccines over the few next years<br />

will be substantial. Similar scenarios are like-<br />

ly in other markets such as Brazil, Thailand,<br />

China and others.<br />

• Tiered or differential pricing for products –<br />

selling the same product at different prices<br />

in different countries or in different markets<br />

within the same country – is a way that the<br />

labs could derive revenue and still create<br />

products for the poorest market segments.<br />

• Practitioners discussed the difficulty of get-<br />

ting included in<strong>to</strong> the recommendations of<br />

WHO Expanded Programme on Immuni-<br />

zation (EPI). The labs might find more suc-<br />

cess by pursuing projects that could be sold<br />

in both low- and middle-income countries <strong>to</strong><br />

allow time for government and international<br />

organization procurement processes.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

7


8<br />

Background: Disease Burden & Challenges<br />

<strong>Global</strong> Burden of Disease<br />

The global burden of disease (GBD) is a measure of<br />

the morbidity and mortality caused by all the diseases<br />

of the world, injuries, and risk fac<strong>to</strong>rs. While there<br />

are various measures of the GBD, all of which are<br />

somewhat imprecise (discussed further in the next<br />

section), by any account the developing world is dis-<br />

proportionately affected by infectious diseases.<br />

High-income Countries 1990<br />

2001<br />

Eurpoe and Central Asia 1990<br />

2001<br />

Latin America and Caribbean 1990<br />

2001<br />

Middle East and North Africa 1990<br />

2001<br />

East Asia and Pacific 1990<br />

2001<br />

South Asia 1990<br />

2001<br />

Sub-Saharan Africa 1990<br />

2001<br />

Fifty-six million people died in 2001 and about one-<br />

fifth of these deaths occurred in children under five<br />

years of age, almost all of whom lived in low and<br />

middle-income countries. 1 More than half of these<br />

child deaths were due <strong>to</strong> communicable diseases that<br />

could have been prevented by vaccination. 2 The fig-<br />

ure below 3 illustrates in detail how these diseases af-<br />

fect the developing world.<br />

Figure 1: Death rates by disease group and region in 1990 and 2001 for children aged 0-4 years<br />

Cause-specific death rates from 1990 estimated from Murray and Lopez might not be completely comparable <strong>to</strong> those for 2001<br />

jbecause of changes in data availablity and methods, plus some approximations in mapping in 1990 estimates <strong>to</strong> the 2001 regions<br />

East Asia and Pacific, South Asia, and Europe and Central Asia. For all geographical regions, high-income countries excluded and<br />

shown as single group at <strong>to</strong>p of graph. The geographical regions therefore refer <strong>to</strong> low-and-middle-income countries only.<br />

0 5 10 15 20 25 30 35 40 45<br />

Death rate per 1000 children<br />

Malaria<br />

Diarrhoeal diseases<br />

Respira<strong>to</strong>ry infections<br />

Other infectious and parasitic diseases<br />

Perinatal causes<br />

Nutritional deficiencies<br />

Non-communicable diseases<br />

Injuries<br />

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Measurement<br />

As the figure above suggests, infectious diseases thrive<br />

where poverty and malnutrition are prevalent, sanita-<br />

tion and access <strong>to</strong> health services are poor, and vacci-<br />

nation rates for vaccine-preventable illnesses are low.<br />

These conditions are frequently prevalent in certain<br />

developing countries, including wide swaths of the<br />

African continent.<br />

Measuring the burden of infectious disease in devel-<br />

oping countries is critical for identifying appropriate<br />

and effective vaccines and other types of interven-<br />

tions, yet challenges <strong>to</strong> measurement are significant.<br />

In developing countries, epidemiological surveillance<br />

projects can be complicated by the difficulty in test-<br />

ing for a disease outside of an inpatient hospital set-<br />

ting, as well as by the availability of skilled health care<br />

workers or diagnostic <strong>to</strong>ols. 4 Additionally, gathering<br />

data primarily from hospitals can skew findings, since<br />

conducting surveillance in hospitals may result in<br />

identifying only the sickest patients and overestimat-<br />

ing the burden of certain diseases. Alternatively, if<br />

patients tend <strong>to</strong> die before being tested, disease rates<br />

could be underreported.<br />

Infectious disease burden can also vary greatly within<br />

countries and regions, a nuance that is often not cap-<br />

tured in the literature. For example, in Africa there<br />

are important, often ignored, differences across and<br />

within countries that complicate the understanding<br />

of disease prevalence. 5 Ethnic or tribal movement<br />

across national borders contributes <strong>to</strong> cases in which<br />

outbreaks reappear regularly in areas with prior lo-<br />

cal extinction. 6,7 Further, seasonality can complicate<br />

measurement efforts; measles, for example, presents<br />

at different times of year and therefore, prevalence<br />

estimates could vary significantly depending on the<br />

timing of a study. For certain diseases such as chol-<br />

era, there is also pressure <strong>to</strong> underreport cases <strong>to</strong><br />

minimize damage <strong>to</strong> international reputation and<br />

travel industries.<br />

In sum, disease burden indica<strong>to</strong>rs are often blunt<br />

measurements that can make understanding the nu-<br />

anced nature of disease burden difficult and compli-<br />

cate efforts <strong>to</strong> appropriately target interventions.<br />

Product Development & Access<br />

Although there may be uncertainty about the preva-<br />

lence of the diseases they are intended <strong>to</strong> address,<br />

immunizations are still widely regarded as among<br />

the most successful and cost-effective public health<br />

interventions. The last 30 years have seen tremen-<br />

dous successes in the development and reach of new<br />

vaccines, including the worldwide eradication of<br />

smallpox and the elimination of polio and measles in<br />

some parts of the world. In the last ten years alone,<br />

the vaccine market has nearly tripled in size. 8<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

9


10<br />

Even so, serious problems persist with global access<br />

<strong>to</strong> vaccines, particularly within developing countries,<br />

due <strong>to</strong> lack of financing and substantial delivery chal-<br />

lenges. Though precise numbers are difficult <strong>to</strong> as-<br />

certain, there are an estimated 24 million children,<br />

mostly in developing countries, whom current vac-<br />

cination programs do not reach. 9 Considering the<br />

proven efficacy and life-saving abilities of many of<br />

these vaccines, and the mortality rates of children in<br />

developing countries as a result of diseases with exist-<br />

ing vaccines, this gap in coverage has serious conse-<br />

quences.<br />

Financing Challenges<br />

The high cost of research and development, coupled<br />

with the small number of vaccine-producing firms, 10<br />

drive the prices of vaccines up <strong>to</strong> prohibitively ex-<br />

pensive levels. Markets in developing countries that<br />

critically need these vaccines simply cannot afford<br />

them. These high prices mean that aid and programs<br />

are needed <strong>to</strong> help low-income countries access vac-<br />

cines. According <strong>to</strong> UNICEF, an additional one bil-<br />

lion dollars per year is needed <strong>to</strong> provide vaccines <strong>to</strong><br />

children in the 72 poorest countries. 11 The GAVI Al-<br />

liance, launched in 2000 <strong>to</strong> expand the scope and ac-<br />

celerate the delivery of newer vaccines <strong>to</strong> children in<br />

the poorest countries, is already experiencing fund-<br />

ing shortfalls 12 and the prospect of making additional<br />

large-scale purchases of vaccines in the near future is<br />

bleak. Although differential pricing could be used <strong>to</strong><br />

make vaccines more affordable for developing coun-<br />

tries, at this time there is some reluctance among U.S.<br />

manufacturers due <strong>to</strong> political considerations. 13<br />

Another issue <strong>to</strong> be addressed is the relatively small<br />

number of donors <strong>to</strong> global vaccine programs. A re-<br />

cent study on the expenditure patterns of Product<br />

Development <strong>Partnerships</strong> (PDPs) found that 77.1<br />

percent of existing PDPs’ budgets are provided by<br />

five funders, with the Gates Foundation contributing<br />

nearly half of all funding. 14 Development agencies<br />

of industrialized countries round out the rest of the<br />

<strong>to</strong>p five funders, each providing over $20 million <strong>to</strong><br />

such efforts in 2007. Given global economic uncer-<br />

tainty, tight public budgets and failing returns on en-<br />

dowments, heavy reliance on a few funding sources<br />

should be an area of global concern. Furthermore,<br />

the Gates Foundation’s generous funding of orga-<br />

nizations in the U.K. and the U.S. may accentuate<br />

existing geographical resource asymmetries between<br />

developed and developing countries. 15<br />

Delivery Challenges<br />

In addition <strong>to</strong> access and financing challenges, care-<br />

ful consideration should be given <strong>to</strong> how vaccines<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


that do reach the developing world are delivered in<br />

real-world (and often sub-optimal) conditions. Such<br />

safety concerns extend well beyond the clinical trials<br />

that take place before a product is introduced <strong>to</strong> the<br />

market.<br />

Accidental sharps exposure<br />

Without proper precautionary measures, the<br />

vaccination process can be particularly risky for<br />

health care professionals and patients. Needle-<br />

sticks and sharps exposures can expose both pa-<br />

tients and healthcare workers <strong>to</strong> transmission of<br />

a variety of serious diseases. Empirical research<br />

from the developing world reveals a pressing<br />

need <strong>to</strong> improve knowledge among nurses and <strong>to</strong><br />

promote practices that reduce the risk of needle-<br />

based injuries <strong>to</strong> stem the spread of infectious dis-<br />

eases. Stronger training programs, provision of<br />

low-cost technologies (e.g., puncture-proof con-<br />

tainers), institutionalized systems for addressing<br />

sharps injuries in health centers, and improved<br />

preventative vaccination of health care workers<br />

and hospital staff are all associated with a re-<br />

duced risk of disease transmission, particularly in<br />

developing countries. 16,17<br />

Developing needleless delivery technologies<br />

would represent a major advance that could al-<br />

leviate the need for many of these training pro-<br />

grams.<br />

Disposal and disinfection of biowaste<br />

Improper disposal of vaccination-related bio-<br />

waste (e.g. used syringes) can also lead <strong>to</strong> unnec-<br />

essary exposure of otherwise healthy individuals<br />

<strong>to</strong> dangerous infections. Without proper materi-<br />

als, training and procedures in place, the vaccina-<br />

tion process can spread rather than staunch the<br />

transmission of disease by introducing pathogens<br />

through the water, air, soil, and direct human-<strong>to</strong>-<br />

human contact.<br />

Cold-chain limitations<br />

Parts of the developing world lack comprehensive<br />

refrigeration systems; sustained periods without<br />

refrigeration can compromise the efficacy and<br />

safety of vaccine products. Furthermore, there is<br />

evidence that weaknesses in the cold-chain lead<br />

<strong>to</strong> waste or delivery of unsafe vaccines. Research<br />

in South Africa revealed that polio outbreaks<br />

were likely a consequence of a compromised<br />

cold-chain, while a study in Hungary showed that<br />

fluctuations in temperature were rendering vac-<br />

cines useless. 18 There are also studies in India that<br />

illustrate how weaknesses in the cold-chain for<br />

oral polio vaccine in rural districts put children at<br />

risk. 19 In light of these findings, establishing heat-<br />

stable vaccines may be a critical innovation that<br />

revolutionizes the health community’s ability <strong>to</strong><br />

bring vaccines <strong>to</strong> once unreachable populations.<br />

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11


12<br />

Post-marketing surveillance.<br />

Even the largest of Phase III trials are insuffi-<br />

cient in determining all of the possible risks in-<br />

herent in vaccine delivery. The relative rarity of<br />

serious side effects, limited numbers of human<br />

test subjects, and other design limitations make<br />

post-market moni<strong>to</strong>ring crucial <strong>to</strong> ensuring vac-<br />

cine safety. The challenge with an after-market<br />

surveillance system is that it is inherently pas-<br />

sive: reports of adverse effects are voluntarily<br />

submitted both by health providers and the pa-<br />

tients themselves. These submissions are helpful,<br />

but tend <strong>to</strong> be inconsistent and underreported. 20<br />

Equally as important, reporting rates of adverse<br />

effects should not be confused with incidence<br />

rates or with causality. Even “passive” data col-<br />

lection systems have provided valuable insight<br />

in<strong>to</strong> troubling trends caused by vaccine delivery<br />

that would otherwise have been missed. Studies<br />

have used passive data <strong>to</strong> debunk the relationship<br />

between diphtheria vaccine and sudden infant<br />

death syndrome 21 , and in other cases allowed re-<br />

searchers <strong>to</strong> compare rates of adverse reactions<br />

and make modifications <strong>to</strong> immunization recom-<br />

mendations. 22<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


The previous section outlined the myriad difficulties<br />

in developing, delivering, and financing vaccines for<br />

the developing world. Though challenges are sub-<br />

stantial, in recent years, several entities have sought<br />

<strong>to</strong> provide an infusion of resources via product devel-<br />

opment partnerships (PDPs) <strong>to</strong> jump-start efforts <strong>to</strong><br />

meet these challenges. 23 The Hilleman Labora<strong>to</strong>ries<br />

joins a small but notable group of PDPs focused spe-<br />

cifically on vaccine development. This section briefly<br />

reviews key components of, and operational hurdles<br />

associated with, two such efforts: the Meningitis Vac-<br />

cine Partnership and the International <strong>Vaccine</strong> In-<br />

stitute.<br />

Analysis of Two <strong>Vaccine</strong> PDPs<br />

Meningitis <strong>Vaccine</strong> Partnership<br />

In 2001 the Meningitis <strong>Vaccine</strong> Partnership (MVP)<br />

was initiated as a collaboration between the WHO<br />

and PATH, an international global health non-prof-<br />

it. 24 While the effort does not have one major indus-<br />

try partner like Merck, it has collaborated closely<br />

with private entities such as the Serum Institute of<br />

India Ltd (SIIL). From the start, the MVP, unlike<br />

other PDPPPs, fulfilled a coordina<strong>to</strong>r role <strong>to</strong> bring <strong>to</strong>-<br />

gether financial resources, intellectual property, and<br />

in-country distribution expertise, instead of fulfilling<br />

a pure product development role (e.g. starting a proj-<br />

ect from the very beginning). Since components of<br />

the Meningococcal A vaccine already existed, it was<br />

the conjugation technology that was needed <strong>to</strong> craft<br />

a vaccine that would best target the serotype most<br />

prevalent in Africa.<br />

Key components of the strategy:<br />

Due diligence prior <strong>to</strong> product development<br />

activities<br />

The MVP emerged following a WHO-led<br />

assessment of meningitis burden in Africa. 25<br />

This focused research sweep ensured that pri-<br />

or <strong>to</strong> beginning development, MVP leaders<br />

had a sense of existing intellectual property,<br />

clinical research, and a highly focused mis-<br />

sion, further shaped by joint resolutions that<br />

came out of the assessment. 26<br />

<strong>Partnerships</strong> with “emerging suppliers”<br />

MVP worked closely with Indian manufac-<br />

turer, the Serum Institute of India Limited<br />

(SIIL) in Pune, India, <strong>to</strong> supply tetanus <strong>to</strong>x-<br />

oid and <strong>to</strong> manufacture the Meningococcal<br />

A conjugate vaccine. 27 Specifically, SIIL, with<br />

the transferred conjugation technology in<br />

hand, developed test batches, oversaw animal<br />

testing, and completed Phase I testing. SIIL<br />

was also connected <strong>to</strong> distribution efforts by<br />

producing 25 million doses of the vaccine an-<br />

nually. 28<br />

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13


14<br />

Clear price parameters<br />

The PATH-SIIL agreement set out an ini-<br />

tial pricing of US$0.40 per dose for sales of<br />

the vaccine <strong>to</strong> countries within the African<br />

meningitis belt; this pricing will eventually in-<br />

crease <strong>to</strong> US$.50 per dose. Though this pric-<br />

ing ensured that final products were afford-<br />

able in developing countries, interviews with<br />

various sources conducted by the task force<br />

indicated that the price structure was <strong>to</strong>o rig-<br />

id and <strong>to</strong>o low.<br />

International <strong>Vaccine</strong> Institute<br />

The International <strong>Vaccine</strong> Institute (IVI) grew out<br />

of the United Nations Development Programme’s<br />

(UNDP) Child <strong>Vaccine</strong> Initiative in 1993 as a result<br />

of an agreement within the international community<br />

about the need for a public sec<strong>to</strong>r research organi-<br />

zation focused exclusively on the development of<br />

vaccines for people in developing countries. Twelve<br />

countries and the WHO signed the founding docu-<br />

ment (this number has since grown <strong>to</strong> 40). After an<br />

independent selection committee chose the Republic<br />

of Korea as host of the institute, the Korean gov-<br />

ernment (GOK) donated IVI’s building on Seoul<br />

National University’s (SNU) campus and funded the<br />

equipping of the labora<strong>to</strong>ries. 29 The GOK’s goal in<br />

welcoming a UN-sponsored international organiza-<br />

tion during the country’s period of immense growth<br />

was <strong>to</strong> attract more international institutions <strong>to</strong><br />

Seoul, both <strong>to</strong> allow the country <strong>to</strong> give back <strong>to</strong> the<br />

world for the support it received during its time as a<br />

UN-recipient country and <strong>to</strong> establish a reputation<br />

for scientific innovation. 30<br />

The Institute was founded with a clear mission: “To<br />

combat infectious diseases through innovations in<br />

vaccine design, development and introduction, ad-<br />

dressing the needs of people in developing coun-<br />

tries.” 31 To pursue this mission, IVI works in every<br />

stage of vaccine development from “bench <strong>to</strong> com-<br />

munity,” a continuum comprised of: 1) design of new<br />

routes for delivery of vaccines; 2) improvement of<br />

vaccine manufacturing processes, technology trans-<br />

fer, and regula<strong>to</strong>ry support; 3) clinical assessments<br />

of vaccine candidates; 4) collection of evidence <strong>to</strong><br />

support the introduction of under-utilized vaccines<br />

in developing countries; 5) data synthesis, analysis,<br />

and dissemination <strong>to</strong> promote vaccine availability;<br />

and 6) building capacity among vaccine profession-<br />

als in developing countries. 32 To achieve these goals<br />

IVI has its headquarters in Seoul, field presence in 29<br />

countries in Asia, Africa, and Latin America, 33 and,<br />

since 2008, offices of Policy & Economic Research<br />

and Communications & Development <strong>to</strong> help raise<br />

awareness among donors and developing country<br />

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governments of the importance of the organization’s<br />

work and policies <strong>to</strong> support vaccination efforts.<br />

Challenges:<br />

Attracting senior talent<br />

The size of the IVI staff working in each of<br />

these stages has grown considerably from<br />

a staff of 74 in 2003 <strong>to</strong> 152 in 2009, with<br />

projections of 190 in 2012, representing 18<br />

countries. However, while roughly 50 percent<br />

of its staff is not Korean, 34 the organization<br />

has had trouble attracting <strong>to</strong>p international<br />

talent <strong>to</strong> come and live in Seoul. Through its<br />

relationship with SNU, the organization has<br />

been able <strong>to</strong> work with Korean Ph.D. candi-<br />

dates and attract Korean faculty as advisors.<br />

Nevertheless, IVI’s location in Seoul remains<br />

a challenge <strong>to</strong> <strong>to</strong>p-tier recruitment.<br />

Location<br />

While the Korean government has been a fi-<br />

nancial and political asset <strong>to</strong> IVI by donating<br />

the land and equipping the facilities among<br />

other contributions, the location in Korea of<br />

an organization focused on developing coun-<br />

try diseases is a challenge, given that the bulk<br />

of the burden of many diseases is in Africa<br />

and South Asia. 35 As IVI seeks <strong>to</strong> broaden<br />

its reach in<strong>to</strong> Africa and Latin America, this<br />

challenge may become more acute.<br />

Funding<br />

IVI’s funding challenges are two-fold. First,<br />

as a purely international, non-profit institu-<br />

tion, the organization’s budget comes exclu-<br />

sively from governmental, non-profit, and<br />

private-sec<strong>to</strong>r donors. While this budget grew<br />

from $11 million in 2003 <strong>to</strong> $26 million in<br />

2009, 36 the vast majority (80 percent) is ear-<br />

marked for specific projects, leaving very little<br />

flexible money <strong>to</strong> fund the day-<strong>to</strong>-day opera-<br />

tions of the organization. 37 Second, the orga-<br />

nization’s funding is relatively uneven among<br />

donors and organizational distribution, with<br />

a disproportionate amount coming from the<br />

Gates Foundation. Out of an estimated 2007<br />

budget of $25.5 million, Gates gave $17 mil-<br />

lion. The next biggest donor, the GOK, gave<br />

$4.5 million. 38 As referenced in the financing<br />

challenges section, this reliance on one large<br />

donor has the potential both <strong>to</strong> dictate re-<br />

search efforts and <strong>to</strong> leave the organization<br />

vulnerable <strong>to</strong> the whims of funders’ interests.<br />

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The Hilleman Labora<strong>to</strong>ries has the advantage of<br />

learning from the successes and mistakes of other<br />

PDPs. One significant challenge the labs leadership<br />

face, presumably like other PDPs, is how <strong>to</strong> structure<br />

operations. Working within a single country could<br />

lead <strong>to</strong> perceptions that the labs is intended <strong>to</strong> solely<br />

address the Indian market, when in fact leaders hope<br />

<strong>to</strong> position the labs as a global presence. In addition,<br />

there are many logistical and regula<strong>to</strong>ry hurdles as-<br />

sociated with operating in the Indian context (see the<br />

Challenges section for additional details). To address<br />

these concerns, one suggestion is a decentralized<br />

operation. This could mean that the labs operate in<br />

multiple countries and/or that the labs exist more<br />

virtually rather than as a bricks and mortar initiative<br />

in one location. These multiple outfits could serve<br />

<strong>to</strong> connect existing research efforts, academics, and<br />

global health practitioners.<br />

This report carefully considers the earlier conception<br />

of the labs as a physical venture headquartered in<br />

India, however the task force wished <strong>to</strong> provide early<br />

feedback about the idea of decentralized operations,<br />

whether in lieu of or supplemental <strong>to</strong> physical labs<br />

in India.<br />

An Alternate Approach:<br />

Decentralized Operations<br />

Framing questions:<br />

To decide whether or not <strong>to</strong> pursue decentralized op-<br />

erations and a slightly reframed mission, as described<br />

above, Merck, Wellcome, and Hilleman Labora<strong>to</strong>ries<br />

leaders must consider several key questions:<br />

• What exact role would the labs play if decen-<br />

tralized: would it provide funding <strong>to</strong> clinical<br />

researchers and then transfer these discover-<br />

ies <strong>to</strong> low-cost manufacturers (LCMs) capable<br />

of conducting Phase I/II research?<br />

• Will Merck still potentially make pre-clini-<br />

cal discoveries available <strong>to</strong> decentralized lab<br />

partners, as proposed with the physical labs?<br />

• What regulations and limitations would the<br />

labs be subject <strong>to</strong> (with key contribu<strong>to</strong>rs in<br />

different locations and countries, performing<br />

various operations), and how do these help<br />

inform and dictate the optimal structure of<br />

the decentralized labs?<br />

• Will the labs’ locations accept submissions of<br />

research from individuals looking for partners<br />

beyond the initial stages?<br />

• If so, does Merck have any right <strong>to</strong> follow up/<br />

pick up the research from among the submis-<br />

sions, along the lines of the preferred com-<br />

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mercial partner status it enjoys through the<br />

labs as currently configured? What message<br />

is communicated if Merck passes on an op-<br />

portunity?<br />

Benefits of a decentralized set-up:<br />

• Signals that the intent of the labs is <strong>to</strong> develop<br />

low-cost vaccines for the developing world at-<br />

large, not just for India.<br />

• Avoids some of the regula<strong>to</strong>ry hurdles associ-<br />

ated with setting up a brick and mortar entity<br />

in India (see Challenges section for further<br />

discussion).<br />

• Enables Merck and the Wellcome Trust <strong>to</strong><br />

foster partnerships with clinical innova<strong>to</strong>rs<br />

as well as low-cost manufacturers across the<br />

globe.<br />

• Creates an independent image for the labs<br />

(distinct from Merck) by connecting the labs<br />

<strong>to</strong> multiple partners; other corporations might<br />

be more likely <strong>to</strong> partner with the labs if the<br />

research seems less closely tied <strong>to</strong> Merck.<br />

• Mitigates risk by including a more diversified<br />

project portfolio and, if pursued in conjunc-<br />

tion with a physical lab, offers a readily acces-<br />

sible network of partners <strong>to</strong> test any products<br />

developed.<br />

• Enables Merck <strong>to</strong> conduct translational re-<br />

search, possibly more efficient than if per-<br />

formed in a nascent labs setting, and then<br />

transferring products <strong>to</strong> the network.<br />

Drawbacks of a decentralized set-up:<br />

• Challenging <strong>to</strong> define the identity and spe-<br />

cific value-added of the labs with different lo-<br />

cations/partners and approaches <strong>to</strong> diseases.<br />

This includes the difficult task of addressing<br />

Merck’s involvement, and the fact that poten-<br />

tial partners could be hesitant <strong>to</strong> join for fear<br />

of pressure from such an entity.<br />

• Undermines the opportunity <strong>to</strong> make inroads<br />

in<strong>to</strong> the Indian market afforded by having a<br />

physical presence in India; similarly, it is dif-<br />

ficult <strong>to</strong> assess whether a virtual arrangement<br />

would be taken as seriously as an organiza-<br />

tion with physical location.<br />

• Places an added administrative burden on<br />

the Hilleman Labora<strong>to</strong>ries <strong>to</strong> understand a<br />

broader array of regula<strong>to</strong>ry environments<br />

where partners are based.<br />

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1. <strong>Public</strong> Identity<br />

It is critical for the Hilleman Labora<strong>to</strong>ries’ leaders <strong>to</strong><br />

establish a clear “niche” within the existing sphere of<br />

vaccine development initiatives. This public engage-<br />

ment is especially important for ensuring ongoing<br />

funding (discussed further in a subsequent section).<br />

While the labs’ leaders have already taken important<br />

first steps <strong>to</strong> clarify its role, including a 2009 press<br />

release indicating that it will seek <strong>to</strong> move clinical dis-<br />

coveries <strong>to</strong> “proof of concept,” and optimize existing<br />

products for developing country contexts, 39 we sug-<br />

gest that the Hilleman Labora<strong>to</strong>ries’ leadership take<br />

further actions <strong>to</strong> outline the initiative’s aims.<br />

Members of the task force understand the challenge<br />

of managing public relations concurrent <strong>to</strong> launch.<br />

However, by not advancing a clear message broadly<br />

and early on, the labs run the risk of misinforma-<br />

tion spreading or undermining efforts <strong>to</strong> generate<br />

publicity at a later stage. To avoid those scenarios,<br />

we suggest that the labs proactively foster public en-<br />

gagement. In so doing, leaders will be better able <strong>to</strong><br />

recruit and retain talent, maintain relationships with<br />

government officials, and ultimately sell products.<br />

To be sure, the labs must walk a difficult public rela-<br />

tions line. Though maybe unjustified in some con-<br />

texts, it is nonetheless true that non-governmental<br />

organizations, stakeholders, and some individuals<br />

Recommendations<br />

view pharmaceutical companies’ actions in the de-<br />

veloping world with heightened suspicion. 40 In some<br />

cases, these stakeholders may be wary of motives for<br />

a pharmaceutical company’s charitable initiatives. In<br />

a different vein, stakeholders may be unsure of the<br />

Wellcome Trust’s intentions in investing in the labs,<br />

particularly given the Trust’s other activities in India<br />

focused on translational research. Hilleman Labora-<br />

<strong>to</strong>ries leadership should be aware of these percep-<br />

tions and respond accordingly. The recommenda-<br />

tions in this section are intended <strong>to</strong> offer guidance<br />

about the best ways for labs executives <strong>to</strong> craft a pub-<br />

lic identity:<br />

RECOMMENDATION 1.1: Hilleman Labo-<br />

ra<strong>to</strong>ries leadership should communicate the labs’<br />

underlying goals <strong>to</strong> the public.<br />

Action 1.1.1: Advance clear goals<br />

On the Hilleman Labora<strong>to</strong>ries website, there<br />

is information available about the operating<br />

model and answers <strong>to</strong> frequently asked ques-<br />

tions. These materials reflect the broad scope<br />

of what the labs intend address. Part of de-<br />

fining the labs’ goals should be stating clearly<br />

that the labs are being created <strong>to</strong> help the en-<br />

tire developing world so that expectations are<br />

not created for it <strong>to</strong> be an India-focused enti-<br />

ty. We believe that the labs would also benefit<br />

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from outlining overarching operational goals<br />

that drive actions or the key reasons under-<br />

pinning the need for an endeavour focused<br />

specifically on translational research (Phase<br />

I and Phase II activities) and how such ac-<br />

tivities will align with existing efforts. In short,<br />

the task force believes that more work is need-<br />

ed <strong>to</strong> communicate the mission and guiding<br />

principles driving the Hilleman Labora<strong>to</strong>ries.<br />

Action 1.1.2: Clarify the role of the labs beyond<br />

Phase II activities<br />

Hilleman Labora<strong>to</strong>ries leadership have in-<br />

dicated a desire <strong>to</strong> focus on activities around<br />

Phase I and II of vaccine development.<br />

While recognizing that resources are limited<br />

and that it is important not <strong>to</strong> take on <strong>to</strong>o<br />

much <strong>to</strong>o early, the task force also contends<br />

that the labs should take steps <strong>to</strong> establish and<br />

clarify, publicly, their role beyond Phase I and<br />

II. Even if the labs are not going <strong>to</strong> conduct<br />

Phase III trials or directly market products <strong>to</strong><br />

countries, we suggest that it is still in the labs’<br />

leadership’s best interests <strong>to</strong> (1) have a clear<br />

mission beyond taking products <strong>to</strong> the proof<br />

of concept phase (discussed further in the<br />

Mission & Activities section), (2) determine<br />

how they intend <strong>to</strong> meet this mission, and<br />

(3) take steps <strong>to</strong> communicate this mission <strong>to</strong><br />

the public. For example, the leadership could<br />

highlight publicly via press releases, websites,<br />

or joint events their collaboration with inter-<br />

national organizations and government enti-<br />

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ties<br />

Taking such actions will amount <strong>to</strong> more than<br />

just good public relations. Potential hires will<br />

have a better sense of the labs’ mission (and<br />

what is beyond their core mission), as well as<br />

other entities operating in different aspects<br />

of the vaccine product development process,<br />

like low-cost manufacturers who will be less<br />

apt <strong>to</strong> view the labs as a competi<strong>to</strong>r and more<br />

as a potential partner.<br />

RECOMMENDATION 1.2: Hilleman Labo-<br />

ra<strong>to</strong>ries leadership should draw upon funders<br />

for legitimacy in certain settings, but stake out a<br />

unique position apart from project funders, par-<br />

ticularly when working with local partners and<br />

non-governmental organizations (NGOs).<br />

Action 1.2.1: Make clear <strong>to</strong> the public how the<br />

initiative intends <strong>to</strong> retain independence<br />

Though the labs will certainly draw upon ex-<br />

pertise from Merck and the Wellcome Trust,<br />

it is also important for the public, stakehold-<br />

ers, and potential project partners <strong>to</strong> view the<br />

initiative as an entity un<strong>to</strong> itself, not simply<br />

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20<br />

an arm of either of the funders. To that end,<br />

Hilleman Labora<strong>to</strong>ries leadership should es-<br />

tablish processes for maintaining some meas-<br />

ure of independence and communicate these<br />

strategies. To achieve this goal, the labs may<br />

wish <strong>to</strong> appoint an independent advisory<br />

board without Merck/Wellcome represen-<br />

tation and/or create other communication<br />

channels with non-funder partners via regu-<br />

lar meetings or conferences. Members of the<br />

board would represent academia, interna-<br />

tional organizations and first line representa-<br />

tives from global health policy circles. Further,<br />

few public-private global health partnerships<br />

have representatives from low- and middle-<br />

income countries on their boards. 41 By bring-<br />

ing these stakeholders <strong>to</strong> the table, Hilleman<br />

Labora<strong>to</strong>ries could potentially increase legiti-<br />

macy in the eyes of future cus<strong>to</strong>mers while<br />

simultaneously strengthening public orienta-<br />

tion and commitment <strong>to</strong> targeting vaccina-<br />

tion gaps in the developing world.<br />

Action 1.2.2: Use the Merck/Wellcome brand <strong>to</strong><br />

maximize impact in certain settings<br />

Merck and Wellcome have invested signifi-<br />

cant resources in the labs and leaders should<br />

take care <strong>to</strong> publicize in certain settings the<br />

incredible breadth of experience that both<br />

partners bring <strong>to</strong> the table. In fact, CEO Dr.<br />

Altaf Lal has articulated that he envisions<br />

that the labs will bring a private sec<strong>to</strong>r strat-<br />

egy <strong>to</strong> achieve public goods. 42 When connect-<br />

ing with staff from other industry organiza-<br />

tions, for example, it is logical for the labs <strong>to</strong><br />

actively highlight Merck’s role and the influ-<br />

ence of private sec<strong>to</strong>r on the labs’ operations.<br />

For recruitment efforts, the labs’ leaders may<br />

wish <strong>to</strong> make this affiliation clear <strong>to</strong> signal the<br />

prestige, planning, and stability associated<br />

with industry buy-in. Likewise, the partner-<br />

ship with the Wellcome Trust can be use-<br />

ful in talking with global health community<br />

partners in India and beyond; the Wellcome<br />

Trust already has a substantial presence in In-<br />

dia via a partnership with the Department of<br />

Biotechnology 43 and an R&D initiative. 44<br />

2. Mission & Key Activities<br />

<strong>Vaccine</strong> development is a risky and expensive busi-<br />

ness. Even low-end projections estimate the cost of<br />

developing new vaccines <strong>to</strong> be $200 <strong>to</strong> $500 million.<br />

There are approximately 5:1 odds against a pre-clin-<br />

ical vaccine reaching the market. 45 Because of this<br />

risk, many PDPPPs have sought <strong>to</strong> diversify their<br />

project portfolios.<br />

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Taking on <strong>to</strong>o much risk <strong>to</strong>o early, however, can<br />

jeopardize long-term stability if none of the risks<br />

pan out. Conversely, focusing <strong>to</strong>o narrowly on just<br />

low-risk projects could expose the labs <strong>to</strong> competi-<br />

tion from many other players also seeking the same,<br />

more approachable targets. Generally speaking, the<br />

labs should focus on “low hanging fruit” in the short-<br />

term <strong>to</strong> help build a reputation for success in the field,<br />

while undertaking more high-risk projects over time.<br />

Importantly, <strong>to</strong> achieve maximal stability, the labs<br />

will need <strong>to</strong> seek out partnerships <strong>to</strong> select projects<br />

and ensure developed products are manufactured<br />

and delivered in a safe, efficient manner. With the un-<br />

derstanding that the labs’ mission and key activities<br />

should evolve over time, the task force recommends<br />

a variety of short and long-term goals that will en-<br />

able the labs <strong>to</strong> eventually achieve a diverse project<br />

portfolio.<br />

RECOMMENDATION 2.1: In the short<br />

term, the Hilleman Labora<strong>to</strong>ries should focus<br />

primarily on projects that have a high likelihood<br />

for success.<br />

Action 2.1.1: Choose roughly three initial projects<br />

<strong>to</strong> take on, at least one of which should focus<br />

on optimization of an existing vaccine for the<br />

developing world<br />

The task force recommends that the labs take<br />

on a small portfolio of initial projects intend-<br />

ed <strong>to</strong> optimize existing products rather than<br />

develop wholly novel vaccines. Optimization<br />

could entail focusing on heat-stable products<br />

in order <strong>to</strong> address limited cold-chain capac-<br />

ity in developing country contexts, or safer<br />

delivery mechanisms (e.g. non-needle-based<br />

products) that would reduce challenges in<br />

both delivering and disposing of vaccines.<br />

(See Appendix 2 for recent vaccine innova-<br />

tions).<br />

Specifically, a heat stable rotavirus vaccine<br />

represents a logical initial target; the labs<br />

can leverage RotaTeq expertise from its close<br />

working relationship with Merck. Further, the<br />

recent generation of a heat stable recombi-<br />

nant hepatitis B vaccine 46 suggests that this<br />

goal is technically feasible. Other initial pro-<br />

jects may address safety issues. While from<br />

a risk-perspective, taking on more projects<br />

increases the likelihood of success, the task<br />

force still recommends that the labs take on<br />

a fairly modest project portfolio in the early<br />

years. By staying focused, the labs reduce the<br />

risk of losing sight of project priorities. Fur-<br />

thermore, if the labs are able <strong>to</strong> establish a<br />

reputation for the capacity <strong>to</strong> optimize exist-<br />

ing vaccines, this could help <strong>to</strong> foster partner-<br />

ships with other companies that want <strong>to</strong> opti-<br />

mize their vaccines.<br />

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22<br />

In the medium- <strong>to</strong> long-term, the labs may<br />

want <strong>to</strong> take on at least one project focused<br />

on production of a vaccine from a novel strat-<br />

egy for risk-mitigation and research purposes.<br />

It is worth noting, however, that no PDPPPs<br />

have ushered a <strong>to</strong>tally new vaccine from pre-<br />

clinical discovery <strong>to</strong> market as of yet. PDPPP<br />

successes <strong>to</strong> date, namely the MVP initiative’s<br />

meningitis vaccine, 47 and the IVI’s cholera<br />

vaccine have focused on refining existing<br />

products for the developing world. However,<br />

it would be fruitful for the labs <strong>to</strong> build capac-<br />

ity for production of novel vaccines <strong>to</strong> avoid<br />

specializing <strong>to</strong>o much on optimization.<br />

Action 2.1.2: Moni<strong>to</strong>r the changing landscape of<br />

private industry vaccine research <strong>to</strong> determine<br />

which targets should be selected or avoided,<br />

including but not limited <strong>to</strong> the “big three”<br />

diseases (HIV, malaria, tuberculosis)<br />

Given the relatively limited resources of the<br />

labs compared <strong>to</strong> major pharmaceutical<br />

companies, leaders should avoid pursuing<br />

projects with later-stage competi<strong>to</strong>r products<br />

from major firms. Other PDPPP efforts are<br />

instructive on this point: some have specu-<br />

lated that IVI may encounter challenges in<br />

developing its typhoid vaccine and achiev-<br />

ing a significant market share given industry<br />

competition. The scope of products that fall<br />

in this category is likely <strong>to</strong> change given that<br />

certain diseases formerly of interest in devel-<br />

oping country settings only, now have emerg-<br />

ing developed country markets due <strong>to</strong> changing<br />

ecological conditions (e.g., dengue fever) and<br />

<strong>to</strong>urism-based interest.<br />

Even though as a general precept the labs<br />

should avoid direct industry competition<br />

where possible, one exception would involve<br />

projects like heat-stable RotaTeq, where the<br />

labs may be able <strong>to</strong> produce cheaper prod-<br />

ucts better tailored for delivery in developing<br />

country settings, where cold-chains and other<br />

infrastructure are in short supply. This, of<br />

course would necessitate proper evaluation<br />

of intellectual property issues and royalty im-<br />

plications that could undercut the labs’ bot-<br />

<strong>to</strong>m line.<br />

Finally, we suggest that the Hilleman Labo-<br />

ra<strong>to</strong>ries avoid projects related <strong>to</strong> the “big<br />

three” diseases since a great deal of money 48<br />

and time has already been directed <strong>to</strong> other<br />

initiatives focused on these diseases, without<br />

notable success.<br />

RECOMMENDATION 2.2: In the longer<br />

term, the labs leadership should broaden its proj-<br />

ect scope <strong>to</strong> mitigate risk and moni<strong>to</strong>r down-mar-<br />

ket activities.<br />

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Action Item 2.2.1: Expand the institutional focus<br />

beyond Phases I and II <strong>to</strong> ensure the quality of<br />

product development and moni<strong>to</strong>r how external<br />

developments affect project scope and launch<br />

Though the labs’ core activities will initially<br />

focus on Phases I and II, the task force strong-<br />

ly recommends that the Hilleman Labora<strong>to</strong>-<br />

ries define its plans for engaging in efforts be-<br />

yond Phase II. While the labs will not conduct<br />

Phase III trials or get in<strong>to</strong> direct marketing<br />

efforts, it is important from a “brand name”<br />

perspective <strong>to</strong> ensure that there is satisfac-<br />

<strong>to</strong>ry product demand and that the products<br />

ultimately sold by low-cost manufacturers are<br />

of a quality commensurate with Merck’s, the<br />

Wellcome Trust’s, and the Hilleman Labora-<br />

<strong>to</strong>ries’ reputations.<br />

There is of course, the danger of mission<br />

creep in entering in<strong>to</strong> <strong>to</strong>o many downmarket<br />

activities. Even MVP has conceded problems<br />

in getting <strong>to</strong>o involved in marketing and dis-<br />

tribution, noting scenarios where countries<br />

were fully mobilized <strong>to</strong> distribute the ini-<br />

tiative’s vaccine when the product was not<br />

ready. 49 In other words, the labs’ leadership<br />

should be hesitant <strong>to</strong> engage in <strong>to</strong>o much<br />

marketing activity before products are ready<br />

<strong>to</strong> sell. However, having a process ready for<br />

overseeing down-market activities well in ad-<br />

vance of sales will safeguard the labs’ reputa-<br />

tion and increase the likelihood of marketing<br />

success.<br />

Specifically, we suggest that the labs hire a<br />

market liaison <strong>to</strong> focus on public awareness,<br />

advocacy and market assessment. 50 Such a<br />

position could partner with LCMs during<br />

Phase III trials or when products are formal-<br />

ly brought <strong>to</strong> market. Also, <strong>to</strong> more broadly<br />

moni<strong>to</strong>r the environment in<strong>to</strong> which the labs<br />

products will be released, we suggest that the<br />

labs establish an Office of Communications<br />

and <strong>Public</strong> Affairs (OCPA), discussed in more<br />

detail later in this report. Staff within this of-<br />

fice should be responsible for interacting with<br />

Indian government officials and other key<br />

stakeholders in India. This type of work en-<br />

sures that the labs’ leadership are kept abreast<br />

of any policy, legal, or technological changes<br />

that influence their projects. The Partner-<br />

ships section describes specific actions this of-<br />

fice could take <strong>to</strong> support the labs.<br />

RECOMMENDATION 2.3: Hilleman Labo-<br />

ra<strong>to</strong>ries should establish and adhere <strong>to</strong> a rigorous<br />

systematic scientific audit <strong>to</strong> continually assess its<br />

project portfolio.<br />

Examples such as the RV144 HIV vaccine trial<br />

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have shown a reluctance of corporations <strong>to</strong> cut<br />

ties with seemingly ineffective vaccine candi-<br />

dates. 51,52 To prevent a similar scenario, every 1-2<br />

years the Hilleman Labs should be diligent about<br />

having a review <strong>to</strong> measure progress (performed<br />

by an independent, external group within the<br />

vaccine development community). Given that<br />

the labs will be a non-profit organization, strictly<br />

adhering <strong>to</strong> this requirement will be important,<br />

rather than just initially committing <strong>to</strong> it without<br />

follow-through. Merck and the Wellcome Trust<br />

may want <strong>to</strong> establish contingencies whereby<br />

continued funding is dependent on the successful<br />

administration of these meetings. Making such<br />

reviews meaningful will require a firm endorse-<br />

ment from the labs’ leadership, communicated<br />

from the initial launch. These assessments will<br />

provide a useful, recurring incentive for scientists<br />

<strong>to</strong> produce tangible results by stated deadlines.<br />

RECOMMENDATION 2.4: The Hilleman<br />

Labora<strong>to</strong>ries should offer technical training <strong>to</strong><br />

both low-cost manufacturers (LCMs) and gov-<br />

ernment regula<strong>to</strong>rs <strong>to</strong> bolster capacities <strong>to</strong> ensure<br />

a safe vaccine manufacturing process and mar-<br />

keting success.<br />

Action 2.4.1: Hilleman Labora<strong>to</strong>ries leadership<br />

should be prepared <strong>to</strong> assess whether a lowcost<br />

manufacturing partner has the necessary<br />

capacity <strong>to</strong> safely manufacturer vaccines<br />

While the labs may not produce or distribute<br />

the vaccine, the labs will be irreversibly asso-<br />

ciated with any product mishaps that occur<br />

as a result of negligence in the production<br />

chain. To preserve the Hilleman Labora<strong>to</strong>-<br />

ries reputation and integrity, the labs’ lead-<br />

ership must thoroughly assess the capacities<br />

of its manufacturing partners and identify a<br />

methodology for improving weaknesses in its<br />

partners.<br />

Action 2.4.2: Create a department responsible<br />

for training and capacity building focused on<br />

working with both government officials and lowcost<br />

manufacturers in India<br />

The long-term safety and efficacy of the<br />

Hilleman Labora<strong>to</strong>ries’ products depends<br />

on the ability of governments <strong>to</strong> effectively<br />

regulate manufacturers and administra<strong>to</strong>rs<br />

of vaccination programs for safety. It will be<br />

necessary <strong>to</strong> have varying degrees of capac-<br />

ity building in the design and scaling-up of<br />

the vaccine production and delivery process.<br />

Hilleman Labora<strong>to</strong>ries-designed and imple-<br />

mented training modules can likely help fill<br />

this gap in capacity as well as protect against<br />

potential accidents. As previously discussed,<br />

a staff position or department tasked with<br />

overseeing market strategies could fulfil these<br />

goals. As a part of this effort, this office could<br />

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also be responsible for exploring opportuni-<br />

ties for small-scale data collection, potentially<br />

via LCM partners, <strong>to</strong> evaluate product safety<br />

in the after-market.<br />

3. <strong>Partnerships</strong><br />

Effective collaboration with both host-country and<br />

global stakeholders is essential for the Hilleman<br />

Labora<strong>to</strong>ries’ long-term stability. Meaningful part-<br />

nerships can enable the labs’ leadership <strong>to</strong> identify<br />

both potential roadblocks as well as opportunities for<br />

innovation. Building trusting relationships can also<br />

improve the labs’ reputation, knowledge base and ca-<br />

pacity in identifying and developing vaccines that ad-<br />

dress a true global health need for poor populations.<br />

Further, one of the comparative advantages of plac-<br />

ing the Hilleman Labora<strong>to</strong>ries in a less-developed<br />

country is its proximity <strong>to</strong> the challenges posed by<br />

infectious diseases. The labs’ leadership should seize<br />

upon the opportunity <strong>to</strong> work with on-the-ground<br />

governmental, non-governmental and for-profit or-<br />

ganizations <strong>to</strong> better understand what these stake-<br />

holder groups perceive <strong>to</strong> be the priorities and ob-<br />

stacles <strong>to</strong> effectively combating disease in developing<br />

contexts. This local expertise can provide the labs’<br />

leadership with valuable feedback about its priorities<br />

and a host of potential partners for product design,<br />

vaccine production, and delivery. This section high-<br />

lights a range of potential organizations and entities<br />

that the labs’ leadership should consider as potential<br />

partners.<br />

RECOMMENDATION 3.1: Strengthen re-<br />

lationships with Indian government ministries<br />

and departments that oversee vaccine production<br />

and policies <strong>to</strong> secure the Hilleman Labora<strong>to</strong>ries’<br />

long-term position in India.<br />

Action 3.1.1 Establish an Office of<br />

Communications and <strong>Public</strong> Affairs (OCPA) tasked<br />

with outreach <strong>to</strong> the Government of India<br />

Government relationships are vital <strong>to</strong> under-<br />

standing and complying with the regula<strong>to</strong>ry<br />

framework in which the Hilleman Labora-<br />

<strong>to</strong>ries will operate. For example, in its early<br />

stages, the Hilleman Labora<strong>to</strong>ries may have<br />

<strong>to</strong> rely on foreign nationals <strong>to</strong> fill senior re-<br />

search positions. The OCPA could focus its<br />

early efforts on attaining an expedited visa<br />

agreement for hiring foreign nationals and<br />

any other potential administrative roadblocks<br />

<strong>to</strong> bringing foreign nationals in<strong>to</strong> the country.<br />

The OCPA could also push for a similar tax-<br />

advantaged status that the Hilleman Labo-<br />

ra<strong>to</strong>ries’ peers were accorded in order <strong>to</strong> be<br />

competitive within India and internation-<br />

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26<br />

ally. 53 The emphasis on building strong re-<br />

lationships between the labs and the Indian<br />

government reflects the Wellcome Trust’s<br />

previous experience working with the De-<br />

partment of Biotechnology and the role that<br />

a positive working relationship can have in<br />

expediting project progress. 54<br />

Action 3.1.2 Identify and support public sec<strong>to</strong>r<br />

initiatives at higher education institutions that<br />

complement the work of Hilleman Labora<strong>to</strong>ries<br />

Labora<strong>to</strong>ry and research assistant positions<br />

are junior-level positions that would ideally be<br />

filled by Indian nationals rather than recruit-<br />

ing and relocating more expensive foreign<br />

nationals. The labs’ leadership should pursue<br />

a policy of partnering with national labora-<br />

<strong>to</strong>ries or colleges and universities <strong>to</strong> expand<br />

the number and quality of technically trained<br />

graduates that can fill labora<strong>to</strong>ry positions at<br />

the labs. These partnerships might include<br />

establishing an internship or externship pro-<br />

gram through a higher education institution<br />

or sponsoring campus recruitment activities.<br />

The Wellcome Trust can offer vital expertise<br />

in this area, since it has already made inroads<br />

in<strong>to</strong> Indian universities through partnering<br />

with the Government of India’s Department<br />

of Biotechnology.<br />

Connections <strong>to</strong> academia can provide the<br />

labs with a more dispassionate local perspec-<br />

tive on vaccine needs and challenges, as well<br />

as a sense of the true capacities of local gov-<br />

ernments and NGOs <strong>to</strong> deliver and moni<strong>to</strong>r<br />

services. The Wellcome Trust’s pre-existing<br />

relationships with Indian academics and civil<br />

society would be an effective way <strong>to</strong> begin es-<br />

tablishing these connections. 55,56 These con-<br />

nections can also provide a perspective on<br />

research occurring outside of the purview of<br />

the government, which should prove valuable<br />

in areas that lack government presence or ca-<br />

pacity.<br />

RECOMMENDATION 3.2: Hilleman Labo-<br />

ra<strong>to</strong>ries should identify several LCMs or vac-<br />

cine importers in target countries <strong>to</strong> see projects<br />

through <strong>to</strong> completion in ways that meet quality<br />

standards.<br />

Action 3.2.1: Partner with more than one LCM<br />

while making incentives for LCMs clear<br />

It will be important <strong>to</strong> broaden the range of<br />

potential low-cost manufacturing partners<br />

that the Hilleman Labora<strong>to</strong>ries’ leadership<br />

work with <strong>to</strong> conduct Phase III trials. Mar-<br />

keting will be also be important <strong>to</strong> ensure that<br />

adequate quantities of new vaccines are pro-<br />

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duced and priced at reasonable levels.<br />

The labs’ leadership should avoid allowing<br />

a sole manufacturer or firm <strong>to</strong> function as a<br />

monopoly in the vaccine market so vaccine<br />

prices remain affordable and the potential for<br />

manufacturing failures is not concentrated<br />

within one firm. Similarly, by working with<br />

more than one LCM in more than one coun-<br />

try, the labs’ leaders reduce the risk of hav-<br />

ing production undermined or delayed by a<br />

change in government or business climate. To<br />

make sure LCMs both fulfill obligations and<br />

that target markets are adequately reached,<br />

the labs’ leaders should consider embedding<br />

benchmarks in<strong>to</strong> a competitive bidding pro-<br />

cess. 57,58 Having an open competitive bidding<br />

process can be a useful way <strong>to</strong> build legitima-<br />

cy and a sense of independence for potential<br />

partners <strong>to</strong> feel confident working with the<br />

labs. Issues concerning pricing and royalties<br />

paid <strong>to</strong> the labs should be worked out well<br />

in advance before signing agreements with<br />

LCMs.<br />

Hilleman Labora<strong>to</strong>ries leadership, however,<br />

should also not assume that LCMs will come<br />

<strong>to</strong> them; certain LCMs may be wary of lim-<br />

ited profit margins in PDPPP-related proj-<br />

ects targeted <strong>to</strong>ward the developing world.<br />

To incentivize partnerships, the labs’ leaders<br />

should consider granting periods of exclusiv-<br />

ity for new vaccines in exchange for securing<br />

price guarantees and minimum production<br />

volume. These agreements would be revoked<br />

in the event that a low-cost manufacturer is<br />

unable <strong>to</strong> uphold a purchase or license agree-<br />

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ment.<br />

Action 3.2.2: Protect the quality of the Hilleman<br />

Labora<strong>to</strong>ries’ research and its reputation through<br />

agreements with LCMs<br />

Even after turning over a vaccine <strong>to</strong> another<br />

entity for development after Phases I and II,<br />

the end result is a reflection on the Hilleman<br />

Labora<strong>to</strong>ries, both among decision makers<br />

determining vaccine policies and vaccine<br />

consumers. Any agreements between the Hil-<br />

leman Labora<strong>to</strong>ries and partners carrying<br />

out later stage development work should con-<br />

sider including clauses that allow the labs <strong>to</strong><br />

conduct unscheduled and regularly scheduled<br />

on-site visits <strong>to</strong> ensure agreement compliance<br />

and <strong>to</strong> enforce quality control measures.<br />

RECOMMENDATION 3.3: Hilleman Labo-<br />

ra<strong>to</strong>ries leaders should identify local and inter-<br />

national public health experts <strong>to</strong> collect relevant<br />

epidemiological data through field surveillance.<br />

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28<br />

Action 3.3.1: Collaborate with local government<br />

officials and international organizations focused<br />

on data collection rather than create a parallel<br />

data collection system<br />

Meaningful assessment of the local infectious<br />

disease burden <strong>to</strong> inform target product man-<br />

ufacture is contingent on collection of accu-<br />

rate and timely information. Building rela-<br />

tionships with public health and information<br />

bureaus in developing countries as well as<br />

with local representatives from international<br />

agencies including the WHO and UNICEF<br />

can help the Hilleman Labora<strong>to</strong>ries make<br />

strategic decisions while lowering data collec-<br />

tion costs. <strong>Partnerships</strong> with these organiza-<br />

tions can be particularly valuable <strong>to</strong> raising<br />

awareness about disease burden and <strong>to</strong> stimu-<br />

lating demand for new low-cost vaccines.<br />

In India, for example, collecting reliable do-<br />

mestic epidemiological data is one of the key<br />

challenges facing both the Indian govern-<br />

ment and the labs’ initiative. The absence of<br />

reliable data is part of the reason that gov-<br />

ernment authorities have difficulty taking-up<br />

new vaccines: without being able <strong>to</strong> clearly<br />

demonstrate the impact that vaccines have in<br />

reducing disease, it has been difficult <strong>to</strong> make<br />

the case for government investment in new<br />

products. 59 Lack of reliable data also allows<br />

the persistence of unfounded rumors about<br />

the relative safety of vaccines, which reduces<br />

the number of vaccines delivered, and leaves<br />

children vulnerable.<br />

Action 3.3.2: Determine project portfolio with<br />

input from epidemiological research entities<br />

located in developing countries<br />

The Hilleman Labora<strong>to</strong>ries is not in the busi-<br />

ness of doing original epidemiological re-<br />

search and thus should seek out meaningful<br />

partnerships with entities conducting surveil-<br />

lance efforts or seeking <strong>to</strong> improve the land-<br />

scape of diagnostic information in developing<br />

countries. The purpose of such partnerships<br />

should be <strong>to</strong> ideally inform new projects for<br />

the labs <strong>to</strong> take on, not simply <strong>to</strong> moni<strong>to</strong>r im-<br />

plementation of new vaccines. To formalize<br />

these relationships, the labs should enter in<strong>to</strong><br />

agreements or contracts with organizations<br />

that focus on demographic surveillance, 60 in<br />

target countries.<br />

4. Sustainability & Marketing<br />

Considering the expense and risk involved in devel-<br />

oping vaccines, it is necessary <strong>to</strong> have substantial<br />

funding <strong>to</strong> bring products <strong>to</strong> the Phase III stage, not<br />

<strong>to</strong> mention <strong>to</strong> market. The initial commitment of<br />

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£90 million over seven years from Merck and the<br />

Wellcome Trust positions the Hilleman Labora<strong>to</strong>ries<br />

well <strong>to</strong> establish company infrastructure and <strong>to</strong> be-<br />

gin operations. However, <strong>to</strong> realistically achieve the<br />

partnership’s goals, the labs will need financing that<br />

continues past the initial seven years.<br />

Long-term funding streams could be diverse and<br />

come from a variety of sources such as foundations,<br />

donor governments, academia, the private sec<strong>to</strong>r,<br />

multilateral organizations, and, hopefully, product<br />

revenue. As the Hilleman Labora<strong>to</strong>ries leaders seek<br />

funding it will be important <strong>to</strong> maintain a balance<br />

between money that is donated for a specific proj-<br />

ect and funds that can be used unconditionally as the<br />

labs see fit. If <strong>to</strong>o many funders require that their<br />

contributions be channeled <strong>to</strong>ward specific projects,<br />

it may constrain the labs’ ability <strong>to</strong> direct funding as<br />

necessary. This section offers suggestions for how <strong>to</strong><br />

promote sustainability while maintaining the labs’<br />

commitment <strong>to</strong> addressing burden of disease in the<br />

developing world.<br />

RECOMMENDATION 4.1: Merck and the<br />

Wellcome Trust should consider further funding<br />

of the Hilleman Labora<strong>to</strong>ries <strong>to</strong> ensure project<br />

completion and <strong>to</strong> reduce distractions from core<br />

project development activities.<br />

It is vital that the Hilleman Labora<strong>to</strong>ries’ funding<br />

structure reflects the long time horizon of both<br />

vaccine development and optimization projects;<br />

on average vaccine development requires over<br />

ten years. 61 The initial investment from Merck<br />

and the Wellcome Trust will enable the labs <strong>to</strong><br />

get off the ground and hopefully make significant<br />

progress <strong>to</strong>ward a first product. Nevertheless,<br />

funding needs will continue beyond the initial<br />

phase. To that end, we suggest that Merck and<br />

the Wellcome Trust provide additional funding<br />

beyond the initial £90 million if certain pre-de- pre-de-<br />

termined benchmarks are met.<br />

Continued investment can and should be tied <strong>to</strong><br />

the labs’ ability <strong>to</strong> demonstrate achievement of<br />

these core objectives over the course of their start-<br />

up. The task force recommends that Merck and<br />

the Wellcome Trust collaborate with leadership<br />

at the Hilleman Labora<strong>to</strong>ries <strong>to</strong> establish realistic<br />

objectives that can be moni<strong>to</strong>red throughout the<br />

start-up phase. While it will be important for the<br />

labs <strong>to</strong> have lofty, overarching goals that drive its<br />

mission, these benchmarking objectives should<br />

be kept at a level that will be achievable during<br />

the initial phase. For example, funders may set<br />

short-term objectives for the labs like: finalizing<br />

siting arrangements, hiring staff members, mak-<br />

ing significant progress on selected projects, initi-<br />

ating partnerships with the Indian government,<br />

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30<br />

and so on. The second round of funding from the<br />

two partners could be contingent on whether the<br />

labs are able <strong>to</strong> meet such goals or, at a minimum,<br />

if they can show that they are taking actions <strong>to</strong><br />

address the reasons they have not been able <strong>to</strong><br />

achieve them.<br />

This recommendation is not meant <strong>to</strong> discount<br />

the role of external funding streams for the labs.<br />

The intent, however, is <strong>to</strong> ensure that the Hille-<br />

man Labora<strong>to</strong>ries have a steady stream of core<br />

funding that allows for infrastructure building<br />

concurrent <strong>to</strong> product development. Moreover,<br />

if this second round of funding allows the labs<br />

<strong>to</strong> reach a point where they are generating suf-<br />

ficient revenue <strong>to</strong> sustain a significant portion of<br />

their operations, human and financial resources<br />

that would otherwise be channelled <strong>to</strong>wards<br />

grant writing and fundraising could be freed up<br />

for research and product development. Finally,<br />

setting benchmarks has merit in its own right, as<br />

discussed in the Mission & Activities section, in<br />

that it establishes a culture of accountability.<br />

RECOMMENDATION 4.2: Once products<br />

are developed, Hilleman Labora<strong>to</strong>ries leadership<br />

should assess the potential of tiered pricing strat-<br />

egies so that markets in both lower and middle-<br />

income countries can access products.<br />

According <strong>to</strong> a 2002 report, developed country<br />

markets comprise 82 percent of the vaccine in-<br />

dustry revenue but only 12 percent of the vol-<br />

ume. 62 Differential pricing (also called “tiered<br />

pricing”) is one strategy for enabling low-income<br />

countries or other purchasers <strong>to</strong> access products<br />

at prices their respective markets can bear. By<br />

lowering the price of these products in low-in-<br />

come settings, vaccine manufacturers can capi-<br />

talize on a tremendous opportunity for sales. In<br />

fact, because tiered pricing expands the share of<br />

potential purchasers, it could reduce prices across<br />

the board (even in high-income country settings)<br />

because of efficiencies derived from economies<br />

of scale. 63 The task force therefore recommends<br />

that the labs pursue a tiered pricing system for<br />

their products. Explicit pricing agreements be-<br />

tween the labs and partner LCMs must be well<br />

defined before the partnerships are set.<br />

Given the economic diversity within India, the<br />

expanding middle class, and the fact that 80<br />

percent of the health sec<strong>to</strong>r is private, 64 the labs<br />

would not need <strong>to</strong> look far <strong>to</strong> implement tiered<br />

pricing. India’s robust demand for private health<br />

care 65 suggests that while there are certainly large<br />

numbers of extremely impoverished citizens,<br />

there is nevertheless a market that could pay for<br />

the types of products that the labs might develop.<br />

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The natural urban-rural poverty divide provides<br />

a useful natural market segmentation <strong>to</strong> aid in<br />

tiered pricing. Before pursuing this approach in<br />

India (or any country), however, leaders of the<br />

Hilleman Labora<strong>to</strong>ries (or perhaps a separately<br />

appointed entity) should conduct rigorous will-<br />

ingness-<strong>to</strong>-pay studies <strong>to</strong> ensure that pricing re-<br />

flects true demand and capacity. Furthermore,<br />

it will be necessary <strong>to</strong> determine whether trade<br />

laws will allow for this differential pricing across<br />

states in India or other countries. Finally, it will be<br />

necessary <strong>to</strong> assess whether bulk purchases made<br />

by the GAVI Alliance/UNICEF/PAHO can be<br />

segmented <strong>to</strong> allow for inter-country tiered pric-<br />

ing. While these types of analysis may go beyond<br />

the purview of the labs, it is nevertheless a <strong>to</strong>pic<br />

leaders of the labs should discuss when partner-<br />

ing with manufacturers.<br />

RECOMMENDATION 4.3: Leaders of the<br />

Hilleman Labora<strong>to</strong>ries should communicate with<br />

and work closely with government and non-gov-<br />

ernment partners <strong>to</strong> foster demand for its prod-<br />

ucts.<br />

Action 4.3.1: In the longer term, reach out <strong>to</strong><br />

governments of both middle income countries<br />

that may be interested in the labora<strong>to</strong>ries’<br />

products<br />

Hilleman Labora<strong>to</strong>ries CEO, Dr. Altaf Lal,<br />

has indicated that eventually the labs may<br />

seek <strong>to</strong> create revenue by marketing products<br />

at higher prices in middle-income countries,<br />

in line with the tiered pricing strategy de-<br />

scribed earlier. This revenue could conceiv-<br />

ably offset losses from lower-priced products<br />

in developed countries. Though this strat-<br />

egy may not be fully implemented for many<br />

years, the labora<strong>to</strong>ries leadership should not<br />

simply assume that middle-income countries<br />

will be interested in candidate products and<br />

instead, begin <strong>to</strong> establish relationships with<br />

middle-income countries now, with the goal<br />

of attracting LCMs, creating competition,<br />

and driving down costs. In addition, the pro-<br />

cess of introducing products in these contexts<br />

might be very different from marketing tac-<br />

tics used in developing country contexts (e.g.<br />

marketing may need <strong>to</strong> be directed <strong>to</strong> insur-<br />

ers rather than <strong>to</strong> government ministries).<br />

Action 4.3.2: Develop relationships with entities<br />

such as the GAVI Alliance, UNICEF and PAHO <strong>to</strong><br />

ensure product procurement<br />

The GAVI Alliance and UNICEF and<br />

PAHO are three organizations that demand<br />

a significant number of vaccines for low- and<br />

middle-income countries. From 2000-2005,<br />

GAVI’s Immunisation Services Support<br />

(ISS) distributed 2.4 million doses of DTP3<br />

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32<br />

<strong>to</strong> children worldwide. 66 In 2009, UNICEF<br />

procured US$390 million worth of vaccines<br />

<strong>to</strong> 63 countries for GAVI. 67 PAHO also pur-<br />

chases large amounts of vaccines through its<br />

revolving fund for a broader economic base<br />

that includes both developing and middle-<br />

income countries. Because GAVI, UNICEF<br />

and PAHO are key players in the world de-<br />

mand for vaccines, especially <strong>to</strong> the develop-<br />

ing world, the Hilleman Labora<strong>to</strong>ries leaders<br />

must invest in the labs’ relationship with these<br />

entities. The labs should have a specific and<br />

targeted approach <strong>to</strong> working with GAVI,<br />

UNICEF and PAHO <strong>to</strong> create and secure a<br />

strong working relationship with the goal of<br />

product procurement.<br />

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The task force believes that addressing the recom-<br />

mendations in the previous section will help <strong>to</strong> set<br />

the Hilleman Labora<strong>to</strong>ries on a path <strong>to</strong>ward success.<br />

Even so, there are other issues that will pose ongoing<br />

challenges for the labs and for which solutions are not<br />

immediately evident. In meetings, experts and practi-<br />

tioners flagged the following items for labs leadership,<br />

in partnership with Merck and the Wellcome Trust,<br />

<strong>to</strong> carefully consider moving forward.<br />

Intellectual Property<br />

Based on the partnership and funding from Merck,<br />

the task force understands why Merck has the right<br />

of first refusal on products created by the Hilleman<br />

Labora<strong>to</strong>ries. However, the labs’ leadership should be<br />

aware that this agreement might discourage LCMs<br />

or even industry partners from collaborating with the<br />

labs. Potential partners might believe that Merck will<br />

ultimately reap the rewards of the labs regardless of<br />

how products fare or partner contributions. Further,<br />

if Merck does not choose <strong>to</strong> pursue a particular pro-<br />

ject, partners may be suspect of the viability or mar-<br />

ketability of a potential project.<br />

Working in India<br />

India offers a great deal of opportunities including<br />

Ongoing Challenges<br />

work force, development capabilities and substantial<br />

markets for potential products, but it is undeniably<br />

a challenging environment. For example, there are a<br />

number of low-cost manufacturers in India that over-<br />

see Phase I and II activities, like the Serum Institute<br />

of India Ltd. The Hilleman Labora<strong>to</strong>ries runs the<br />

risk of being seen as a competi<strong>to</strong>r <strong>to</strong> these entities,<br />

even though opportunities will presumably exist for<br />

collaboration during Phase III and beyond.<br />

In addition, the regula<strong>to</strong>ry environment in India is<br />

daunting. Officials from the Ministry of Health in-<br />

dicated the significant hurdles associated with enter-<br />

ing the Expanded Programme on Immunization in<br />

the country, even after WHO pre-qualification. This<br />

commentary suggests that even if the labs produce a<br />

candidate vaccine for which there is substantial need<br />

and demand, it does not necessarily mean that the<br />

government will be quick <strong>to</strong> procure the product. For<br />

example, the Hepatitis B vaccine was sold on the pri-<br />

vate market for some time before entering the EPI in<br />

India, despite WHO support. 68<br />

Part of the challenge in entering the EPI and in moni-<br />

<strong>to</strong>ring vaccine safety is that epidemiological research<br />

and disease surveillance data is relatively weak in In-<br />

dia. 69 Because of limited data, it can be difficult <strong>to</strong><br />

make the case that vaccines need <strong>to</strong> be introduced.<br />

Furthermore, sometimes officials believe that because<br />

of scarce resources, it makes sense <strong>to</strong> invest in prod-<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

33


34<br />

ucts that address diseases with high mortality out-<br />

comes, not those that address diseases which substan-<br />

tially reduce quality of life but do not necessarily lead<br />

<strong>to</strong> immediate death. 70<br />

Perceptions Associated with Siting<br />

As flagged in the decentralized operations section,<br />

one question that will continue <strong>to</strong> be relevant <strong>to</strong> the<br />

Hilleman Labora<strong>to</strong>ries during its beginning stages is<br />

the perception associated with its location in India.<br />

The labs have sought <strong>to</strong> be recognized as an initia-<br />

tive aimed at addressing the global burden of disease,<br />

not just diseases in India. The labs leadership should<br />

capitalize on all that India has <strong>to</strong> offer: a wide array<br />

of potential LCMs, scientific talent, and proximity <strong>to</strong><br />

need, but if the Hilleman Labora<strong>to</strong>ries is <strong>to</strong> become<br />

a global presence, it must carefully balance its actions<br />

<strong>to</strong> best maximize the benefit of being in India with-<br />

out letting its geographic location limit partnerships<br />

or marketing efforts.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


Closing the global gap in vaccine coverage will re-<br />

quire initiative and commitment equal <strong>to</strong> the scope<br />

of this monumental health challenge. The Hilleman<br />

Labora<strong>to</strong>ries represent the type of innovation, col-<br />

laboration, and cooperation required <strong>to</strong> bring life-<br />

saving vaccines <strong>to</strong> untapped markets in many of the<br />

world’s poorest communities.<br />

As this report has shown, easing the global burden<br />

of disease is neither easy nor without risk. To that<br />

end, the authors have sought <strong>to</strong> highlight both the<br />

opportunities and potential challenges facing Merck<br />

and the Wellcome Trust as they identify the mission<br />

of the Hilleman Labora<strong>to</strong>ries and define its market<br />

niche. In meeting with a diverse set of stakeholders,<br />

the task force broadened its understanding of the is-<br />

sues and opportunities that the labs will face. These<br />

discussions helped generate recommendations that<br />

the task force hopes can narrow the labora<strong>to</strong>ries’ fo-<br />

cus, and better position the labs <strong>to</strong> make a meaning-<br />

ful and sustainable impact in reducing disease bur-<br />

den in developing countries.<br />

No one intervention or initiative can mitigate the<br />

challenges posed by infectious disease worldwide.<br />

Part of the value of the Hilleman Labora<strong>to</strong>ries,<br />

therefore, is its stated objective not simply <strong>to</strong> pro-<br />

duce products, but rather <strong>to</strong> unite a diverse set of<br />

individuals and organizations in pursuit of a shared<br />

objective. Though it will not be without its flaws and<br />

Conclusion<br />

challenges, the task force is confident that the Hille-<br />

man Labora<strong>to</strong>ries have a unique opportunity <strong>to</strong> lev-<br />

erage their position as a public-private entity, and <strong>to</strong><br />

create important new vaccines while simultaneously<br />

galvanizing a diverse set of global health ac<strong>to</strong>rs in a<br />

sustained effort <strong>to</strong> reduce the global burden of infec-<br />

tious disease.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

35


36<br />

Date Location Meetings<br />

• Dr. Mark Feinberg<br />

September 30, 2010 Prince<strong>to</strong>n, NJ<br />

Vice President for Medical Affairs and Policy in<br />

Merck <strong>Vaccine</strong>s and Infectious Diseases at Merck<br />

& Co., Inc.<br />

• Dr. Peter Agre<br />

Oc<strong>to</strong>ber 7, 2010 Prince<strong>to</strong>n, NJ<br />

Nobel Laureate, Direc<strong>to</strong>r of the Johns Hopkins<br />

Malaria Research Institute<br />

November 1, 2010 London, UK • Wellcome Trust<br />

November 3, 2010<br />

November 4, 2010<br />

November 5, 2010<br />

Appendix 1: Timeline of Meetings<br />

• Dr. Ajay Khera<br />

Deputy Commissioner, MCH Ministry of Health<br />

& Family Welfare, Government of India<br />

• Panacea Biotec<br />

Delhi, India<br />

• Officials from<br />

Polio Surveillance Office<br />

• Dr. Vinod Paul<br />

Chief of Pediatrics, All India Institute of Medical<br />

Science<br />

Seoul, South Korea • IVI officials<br />

• Dr. N.K. Ganguly<br />

Former Direc<strong>to</strong>r General of Indian Council of<br />

General Research<br />

Delhi, India<br />

• Dr. Shirshendo Mukherjee<br />

Strategic Adviser, R&D Initiative, India Technology<br />

Transfer, Wellcome Trust<br />

• Officials at US Embassy Meetings with<br />

staff from Apollo Healthcare<br />

Seoul, South Korea • IVI officials<br />

• Dr. Altaf Lal<br />

Delhi, India<br />

CEO of the Merck Wellcome Trust Hilleman<br />

Labora<strong>to</strong>ries<br />

Seoul, South Korea<br />

•<br />

•<br />

IVI<br />

MOFAT<br />

November 12, 2010 West Point, PA • Site visit, Merck Gardasil Plant<br />

November 18, 2010 Prince<strong>to</strong>n, NJ<br />

• Dr. Jeremy Farrar<br />

Direc<strong>to</strong>r of the Oxford University Clinical Re-<br />

search Unit (OUCRU), Ho Chi Minh City, Viet-<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

nam.<br />

December 17, 2010 West Point, PA • Merck officials


Recent <strong>Vaccine</strong> Innovations and Related<br />

Opportunities<br />

This section reviews three recent vaccine innovations<br />

and identifies opportunities for further funding/poli-<br />

cy interventions that the Hilleman Labora<strong>to</strong>ries may<br />

be interested in exploring independently or in part-<br />

nership with other entities.<br />

HPV:<br />

In 2005, 260,000 women died from cervical can-<br />

cer, while another 500,000 women became in-<br />

fected with the human papillomarivus (HPV), a<br />

major cause of cervical cancer. 71 While 85 per-<br />

cent of deaths from cervical cancer occur in the<br />

developing world, the development of HPV vac-<br />

cines offers the possibility of reversing this trend. 72<br />

A series of challenges involved with introducing<br />

the vaccine in<strong>to</strong> the developing world means the<br />

vaccine remains largely out of the hands of those<br />

who need it most in low resource settings. As with<br />

many of the existing available vaccines, “coun-<br />

tries that need the largest quantity of the HPV<br />

vaccine will be the least likely <strong>to</strong> afford it.” 73<br />

While WHO recommends that the target popu-<br />

lation be 9-13 year old adolescent girls, 74 build-<br />

ing herd immunity will require the vaccination of<br />

girls and boys. In developing countries, this seg-<br />

ment of the population is relatively healthy and<br />

Appendix 2<br />

therefore, rarely comes in<strong>to</strong> contact with health<br />

systems. Furthermore, the current high cost of<br />

production for Gardasil, (especially compared <strong>to</strong><br />

Ceravix), means that optimization would have <strong>to</strong><br />

occur <strong>to</strong> lower the end user cost.<br />

Rotavirus:<br />

Rotavirus is the leading cause of severe diarrhea<br />

in infants and children worldwide. In the United<br />

States, before the rotavirus vaccine was intro-<br />

duced in 2006 for all infants, almost all children<br />

were infected with rotavirus before their fifth<br />

birthday. 75 Symp<strong>to</strong>ms include severe diarrhea,<br />

sometimes vomiting, and fever. 76 These symp-<br />

<strong>to</strong>ms can be life threatening in settings with in-<br />

adequate sanitation, nutrition, and lack of access<br />

<strong>to</strong> medical care. The WHO estimates that diar-<br />

rhea caused by rotavirus infection claims more<br />

than 500,000 deaths among children less than<br />

five years of age, approximately five percent of<br />

all deaths of children in that age group. 77 There<br />

are currently two vaccines for rotavirus, RotaTeq,<br />

which had clinical trials and was approved for the<br />

market in 2006, 78 and Rotarix®, which also had<br />

clinical trials that showed efficacy among African<br />

children in 2010. 79 In 2009, the WHO recom-<br />

mended both of these vaccines for all children<br />

worldwide. 80 The current challenge is <strong>to</strong> make<br />

these vaccines part of every country’s national<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

37


38<br />

immunization program, and <strong>to</strong> sustainably man-<br />

ufacture and distribute them worldwide. Today,<br />

only 19 81 of the 193 member states have rotavirus<br />

in their immunization schedules, and the WHO<br />

does not moni<strong>to</strong>r rotavirus in its report of vac-<br />

cine-preventable diseases.<br />

Cholera:<br />

Cholera affects about 3-5 million people each<br />

year, 100,000-200,000 of whom will die. 82 While<br />

seen in pockets of the developed world, cholera is<br />

most common in impoverished countries in Sub-<br />

Saharan Africa and South Asia, and also one<br />

of the most under-reported diseases by govern-<br />

ments. 83 While safe hygiene practices can prevent<br />

cholera, the development and distribution of<br />

low-cost cholera vaccines can be the best solu-<br />

tion <strong>to</strong> curb its spread. There are challenges <strong>to</strong><br />

administering the vaccine, however, and in times<br />

of emergency when a cholera outbreak occurs,<br />

administering the required two doses of the vac-<br />

cine is nearly impossible owing <strong>to</strong> logistical and<br />

operational difficulties. 84<br />

Several vaccines have been developed, tested<br />

and licensed but some were short-lived because<br />

of sub-par efficacy and side effects while others,<br />

such as the WC/rBS vaccine, are found <strong>to</strong> be ef-<br />

ficacious. 84 Dukoral is the more expensive, more<br />

efficacious, WHO pre-qualified oral vaccine that<br />

is currently in use, while cheaper alternatives,<br />

such as Shanchol and ORC Vax, are un-<br />

dergoing scrutiny and have yet <strong>to</strong> be WHO pre-<br />

qualified. Emerging outbreaks like that in Haiti<br />

will continue <strong>to</strong> foster the demand for a single-<br />

dose efficacious cholera vaccine.<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


1 Lopez, Alan D, C. D. Mathers, M. Ezatti, D.<br />

Jamison, and C.J. Murray. “<strong>Global</strong> and regional<br />

burden of disease and risk fac<strong>to</strong>rs, 2001: systematic<br />

analysis of population health data.” The Lancet 367,<br />

no. 9524 (2006): 1747-1757.<br />

2 Ibid.<br />

3 Ibid.<br />

4 In a study of pneumococcal and haemophilus<br />

meningitis at Ethio-Swedish Childrens’ Hospital in<br />

Addis Ababa, cases of meningitis suspected by a<br />

physician were tested by a lumbar puncture procedure<br />

in an in-patient setting. In a Mozambique<br />

study of pneumococcal disease, cases of meningitis<br />

were thought <strong>to</strong> be underestimated since children<br />

demonstrating clinical signs of meningitis did not<br />

always have cerebrospinal fluid samples tested.<br />

(Muhe, Lulu, and K.P. Klugman. “Pneumococcal<br />

and Haemophilus Influenzae meningitis in a children’s<br />

hospital in Ethiopia.” Tropical Medicine and<br />

International Health 4, no. 6 (1999): 421-427.)<br />

5 Such fac<strong>to</strong>rs that may not be accounted for include<br />

ethnic or tribal relationships that extend over<br />

national borders as is the case with the Hausa-Fulani<br />

ethnic group cross border interactions between<br />

Niger and Nigeria, which complicates measles<br />

eradication efforts in Niger. Another example concerns<br />

the contrast between the seasonality of measles<br />

and rotavirus, which both differ across African<br />

countries, and the incidence of measles in the United<br />

Kingdom, which is biennial, highly seasonable,<br />

and fueled by the school year. (Bharti, N, A Djibo,<br />

MJ Ferrari, RF Grais, AJ Tatem, CA McCabe, ON<br />

Bjornstad, and BT Grenfell. «Measles hotspots in<br />

Niger.» Epidemiology and Infection 138 (2010): 1313.)<br />

6 Ferrari, Matthew J, Rebecca F Grais, Nita Bharti,<br />

Andrew JK Conlan, Ottar N Bjornstad, Lara J<br />

Wolfson, Philippe J Guerin, Ali Djibo, and Bryan T<br />

Grenfell. “The Dynamics of Measles in sub-Saharan<br />

Africa.” Nature 451 (2008): 681.<br />

7 Bharti, N, A Djibo, MJ Ferrari, RF Grais, AJ Tatem,<br />

CA McCabe, ON Bjornstad, and BT Grenfell.<br />

“Measles hotspots in Niger.” Epidemiology and<br />

Infection 138 (2010): 1313.<br />

References<br />

8 WHO. “Challenges in global immunization<br />

and the <strong>Global</strong> Immunization Vision and Strategy<br />

2006-2015.” Weekly Epidemiological Record 12, no. 81<br />

(2006): 190-195.<br />

9 Wolfson, Lara J, Francois Gasse, Shook-Pui Lee-<br />

Martin, Patrick Lydon, Ahmed Magan, Abdelmajid<br />

Tibouti, Benjamin Johns, Raymond Hutubessy,<br />

Peter Salama, and Jean-Marie Okwo-Bele. “Estimating<br />

the costs of achieving the WHO-UNICEF<br />

<strong>Global</strong> Immunization Vision and Strategy, 2006-<br />

2015.” Bulletin of the World Health Organization 86,<br />

no. 1 (2008): 27-39.<br />

10 New vaccines require between $300 and $800<br />

million <strong>to</strong> develop. (Plotkin, Stanley A. “<strong>Vaccine</strong>s:<br />

past, present, and future.” Nature Medicine 11, no. 4<br />

(2005): S5-S11<br />

11 Wolfson, Lara J, Francois Gasse, Shook-Pui<br />

Lee-Martin, Patrick Lydon, Ahmed Magan, Abdelmajid<br />

Tibouti, Benjamin Johns, Raymond Hutubessy,<br />

Peter Salama, and Jean-Marie Okwo-Bele.<br />

“Estimating the costs of achieving the WHO-UNI-<br />

CEF <strong>Global</strong> Immunization Vision and Strategy,<br />

2006-2015.” Bulletin of the World Health Organization<br />

86, no. 1 (2008): 27-39.<br />

12 Lydon, P, R Levine, M Makinen, L Brenzel, V<br />

Mitchell, JB Millstien, L Kamara, and S Landry.<br />

“Introducing new vaccines in the poorest countries:<br />

What did we learn from the GAVI experience with<br />

financial sustainability?.” <strong>Vaccine</strong> 26, no. 51 (2008):<br />

6706-6716.<br />

13 Plahte, Jens. “Tiered pricing of vaccines: a winwin-win<br />

situation, not a subsidy.” The Lancet 5, no.<br />

1 (2005): 58-63.<br />

14 This study is based on data from the <strong>Global</strong><br />

Funding of Innovation for neglected diseases (G-<br />

Finder) project, which surveyed 2007 global investments<br />

in<strong>to</strong> R&D of products for neglected diseases.<br />

(Moran, M, J Guzman, AL Ropars, and A Illmer.<br />

“The role of Product Development <strong>Partnerships</strong> in<br />

research and development for neglected diseases.”<br />

International Health Journal 2, no. 2 (2010): 114-122.)<br />

15 McCoy, David, Gayatri Kembhavi, Jinesh Patel,<br />

and Akish Luintel. “The Bill & Melinda Gates<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

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40<br />

Foundation’s grant-making programme for global<br />

health.” The Lancet 373, no. 9675 (2009): 1645-<br />

1653.<br />

16 Bryce, EA, J Ford, L Chase, C Taylor, and S<br />

Scharf. “Sharps injuries: Defining prevention priorities.”<br />

American Journal of Infection Control 27, no. 5<br />

(1999): 447-452.<br />

17 Holodnick, Cherie, and Violet Barkauskas.<br />

“Reducing Percutaneous Injuries in the OR by<br />

Educational Methods.” Association of Operating Room<br />

Nurses 72 (2000): 461-476.<br />

18 Setia, Sabeena, Hugh Mainzer, Michael Washing<strong>to</strong>n,<br />

Gary Coil, and Robert Snyder. “Frequency<br />

and causes of vaccine wastage.” <strong>Vaccine</strong> 20, no. 7-8<br />

(2002): 1148-1156.<br />

19 Arya, SC, and N Agarwal. “Relationship between<br />

vaccine vial moni<strong>to</strong>rs and cold chain infrastructure<br />

in a rural district of India.” Rural Remote<br />

Health 7, no. 1 (2007): 730.<br />

20 Ellenberg, SS, and RT Chen. “The complicated<br />

task of moni<strong>to</strong>ring vaccine.” <strong>Public</strong> Health<br />

Reports 112 (1997): 10-21.<br />

21 Hoffman, Howard J, Jehu C Hunter, Karla Damus,<br />

Jean Pakter, Donald R Peterson, Gerald van<br />

Belle, and Eileen G Hasselmeyer. “Diphtheria-Tetanus-Pertussis<br />

Immunization and Sudden Infant<br />

Death: Results of the National Institute of Child<br />

Health and Human Development Cooperative<br />

Epidemiological Study of Sudden Infant Death<br />

Syndrome Risk Fac<strong>to</strong>rs.” Pediatrics 79, no. 4 (1987):<br />

598-611.<br />

22 Stetler, Harrison C, John R Mullen, John-Paul<br />

Brennan, John R Livengood, Walter A Orenstein,<br />

and Alan R Hinman. “Moni<strong>to</strong>ring system for adverse<br />

events following immunization.” <strong>Vaccine</strong> 5, no.<br />

3 (1987): 169-174.<br />

23 A 2010 report from Moran et al indicates that<br />

in 2007, 42.0% of global funding for neglected<br />

diseases was funneled <strong>to</strong> various types of PDPs.<br />

This percentage excludes the National Institute of<br />

Health because it is the largest funder of research<br />

in<strong>to</strong> neglected diseases, but directs a relatively small<br />

portion of its funding <strong>to</strong>ward PDPs (.4%) on account<br />

of large internal R&D operations. Other<br />

funding went <strong>to</strong> biotechnology firms, universities,<br />

industry, and non-profit entities. (Moran, M, J<br />

Guzman, AL Ropars, and A Illmer. “The role of<br />

Product Development <strong>Partnerships</strong> in research and<br />

development for neglected diseases.” International<br />

Health Journal 2, no. 2 (2010): 114-122.)<br />

24 Meningitis <strong>Vaccine</strong> Project. “Meningitis <strong>Vaccine</strong><br />

Project: Our strategy and principles.” http://<br />

www.meningvax.org/principles.php (accessed January<br />

11, 2011).<br />

25 LaForce, Marc, K Konde, S Viviani, and M<br />

Preziosi. “The Meningitis <strong>Vaccine</strong> Project.” <strong>Vaccine</strong><br />

25S (2007): A97-A100.<br />

26 This document offered highly detailed recommendations<br />

including that vaccines should be administered<br />

in a single dose and that mass vaccination<br />

campaigns should occur in two phases: first<br />

targeting individuals age 9 months <strong>to</strong> 30 years and<br />

then be introduced in<strong>to</strong> routine epidemiological<br />

procedures at 9 months, combined with measles or<br />

yellow fever vaccines. “Joint Recommendations for<br />

the Development and Introduction of Conjugate<br />

<strong>Vaccine</strong>s Against Meningococcal Disease in the African<br />

and Eastern Mediterranean Regions,” available<br />

at http://www.path.org/files/WHO-meningjoint-recs.doc.<br />

27 LaForce, Marc, K Konde, S Viviani, and M<br />

Preziosi. “The Meningitis <strong>Vaccine</strong> Project.” <strong>Vaccine</strong><br />

25S (2007): A97-A100.<br />

28 Ibid. For clinical and labora<strong>to</strong>ry work, MVP<br />

has also employed other Indian-based partners:<br />

B.Y.L. Nair Charitable Hospital, India (PsA-<br />

TT-001); Nizam’s Institute of Medical Sciences,<br />

India (PsA-TT-001); King Edward Memorial Hospital<br />

(KEM), India. Finally, MVP is working with<br />

India-based DiagnoSearch Life Sciences <strong>to</strong> oversee<br />

data collection and statistical analysis and clinical<br />

trial moni<strong>to</strong>ring for all trials in India.<br />

29 Gothefors, L, M Troye-Blomberg, and L Ake<br />

Persson. “The relevance and future role of the<br />

International <strong>Vaccine</strong> Institute (IVI) 2000-2006.”<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


Swedish International Development Agency Department for<br />

Research Cooperation 07/09 (2007): 21.<br />

30 Personal communication with Mr. Kweon Kihwan,<br />

Representative from Korea’s Ministry of<br />

Foreign Affairs and Trade, Seoul, South Korea (5<br />

November 2010).<br />

31 “International <strong>Vaccine</strong> Institute.” International<br />

<strong>Vaccine</strong> Institute. http://www.ivi.int (accessed January<br />

11, 2011).<br />

32 “Strategic Plan 2008-2012.” The IVI Newsletter<br />

20 (2009). http://www.ivi.int/newsletter/eng/<br />

disp/news_view.asp?snlid=99 (accessed January 7,<br />

2011).<br />

33 “Annual Report.”International <strong>Vaccine</strong> Institute<br />

(2009). http://www.ivi.int/event_news/news_<br />

view.asp?enid=114 (accessed January 11, 2011).<br />

34 Dr. John Clemens, General Direc<strong>to</strong>r, IVI,<br />

Seoul, South Korea, interview by authors November<br />

4, 2010.<br />

35 Gothefors, L, M Troye-Blomberg, and L Ake<br />

Persson. “The relevance and future role of the<br />

International <strong>Vaccine</strong> Institute (IVI) 2000-2006.”<br />

Swedish International Development Agency Department for<br />

Research Cooperation 07/09 (2007): 15.<br />

36 “Annual Report.” International <strong>Vaccine</strong> Institute<br />

(2009). http://www.ivi.int/event_news/news_<br />

view.asp?enid=114 (accessed January 11, 2011).<br />

37 “Strategic Plan 2008-2012.” The IVI Newsletter<br />

20 (2009). http://www.ivi.int/newsletter/eng/<br />

disp/news_view.asp?snlid=99 (accessed January 7,<br />

2011).<br />

38 Gothefors, L, M Troye-Blomberg, and L Ake<br />

Persson. “The relevance and future role of the<br />

International <strong>Vaccine</strong> Institute (IVI) 2000-2006.”<br />

Swedish International Development Agency Department for<br />

Research Cooperation 07/09 (2007): 21.<br />

39 “Wellcome Trust and Merck Launch First of its<br />

Kind Joint Venture <strong>to</strong> Develop Affordable <strong>Vaccine</strong>s<br />

for Low-income Countries.” MSD Wellcome Trust<br />

- Hilleman Labora<strong>to</strong>ries. http://www.hillemanlabora<strong>to</strong>ries.in/news/<br />

(accessed September 17, 2009).<br />

40 Stephens, Joe. “As Drug Testing Spreads, Profits<br />

and Lives Hang in Balance.” The Washing<strong>to</strong>n Post,<br />

December 17, 2000, sec. A. http://www.washing<strong>to</strong>npost.com/ac2/wp-dyn/A11939-2000Dec15<br />

(accessed January 11, 2011).<br />

41 Buse, K, and A Harmer. “Seven habits of highly<br />

effective global public-private health partnerships:<br />

Practice and potential.” Social Science & Medicine 64,<br />

no. 2 (2007): 262.<br />

42 Lal, Dr. Altaf. Interview by authors. Personal<br />

interview. New Delhi, India, November 5, 2010.<br />

43 “Press Release: Wellcome <strong>to</strong> India.” Wellcome<br />

Trust. http://www.wellcome.ac.uk/News/2008/<br />

News/WTX051323.htm (accessed January 11,<br />

2011).<br />

44 “Research & Development for Affordable<br />

Healthcare in India | Wellcome Trust.” Wellcome<br />

Trust. http://www.wellcome.ac.uk/Funding/<br />

Technology-transfer/Awards/R-and-D-for-Affordable-Healthcare-in-India/index.htm<br />

(accessed<br />

January 12, 2011).<br />

45 Serdobova, Irina, and M Kieny. “Assembling<br />

a <strong>Global</strong> <strong>Vaccine</strong> Development Pipeline for Infectious<br />

Diseases in the Developing World.” American<br />

Journal of <strong>Public</strong> Health 96 (2006): 9.<br />

46 Jezek, J, D Chen, L Watson, J Crawford, S Perkins,<br />

A Tyagi, and L Jones-Braun. “A Heat-Stable<br />

Hepatitis B <strong>Vaccine</strong> Formulation.” Human <strong>Vaccine</strong>s<br />

5, no. 8 (2009): 529-35.<br />

47 Dugger, Celia W. “New Meningitis <strong>Vaccine</strong><br />

Brings Hope of Taming a Ravaging Illness in Africa.”<br />

The New York Times, December 4, 2010.<br />

48 According <strong>to</strong> G-Finder, 42.3% of R&D funding<br />

has been directed <strong>to</strong>ward HIV/AIDS, 18.3%<br />

of funding <strong>to</strong>ward Malaria, and 16.03% <strong>to</strong>ward<br />

Tuberculosis; these three diseases constituted 80%<br />

of the <strong>to</strong>tal global R&D funding <strong>to</strong>ward neglected<br />

diseases. (Moran, Mary, Javier Guzman, Anne-<br />

Laure Ropars, Alina McDonald, Nicole Jameson,<br />

Brenda Omune, Sam Ryan, and Lindsey Wu. “Neglected<br />

Disease Research and Development: How<br />

much are we really spending?” <strong>Public</strong> Library of Sci-<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

41


42<br />

ence 6, no. 2 (2009).)<br />

49 Rochlin, D. “From Polysaccharides <strong>to</strong> Proteins:<br />

The Challenge of Vaccination Against Serogroup<br />

B Meningococcal Disease.” Prince<strong>to</strong>n University Thesis<br />

(2010): 113.<br />

50 IVI Website “International <strong>Vaccine</strong> Institute<br />

Organizational Structure.” International <strong>Vaccine</strong><br />

Institute. http://www.ivi.int/about_us/acheivements.html<br />

(accessed January 12, 2011).<br />

51 Despite objections <strong>to</strong> the fact that the RV144<br />

trial involved the combined use of two vaccines<br />

which individually did not show any protective<br />

effect, a large 16,000 person trial was conducted<br />

<strong>to</strong> test for a synergistic effect. Although the initial<br />

results were hailed as a “qualified success”, closer<br />

examination of the data revealed that only in very<br />

particular statistical tests was a marginal rate of significance<br />

reached. These results only serve <strong>to</strong> bolster<br />

the claims that the NIH funds used were a waste<br />

of resources. (Bur<strong>to</strong>n, DR, et al, “<strong>Public</strong> Health: A<br />

Sound Rationale Needed for Phase III HIV-1 <strong>Vaccine</strong><br />

Trials.” Science 303, no. 5656 (2004): 316.)<br />

52 Cohen, J. “HIV/AIDS Research. Beyond<br />

Thailand: Making Sense of a Qualified AIDS <strong>Vaccine</strong><br />

‘Success’.” Science 326, no. 5953 (2009): 652-3.<br />

53 Preferential tax treatments include the Government<br />

of Korea granting tax-exempt status <strong>to</strong><br />

the International <strong>Vaccine</strong> Institute and the Government<br />

of India’s Industrial R&D Promotion<br />

Program, which allows manufacturers, including<br />

pharmaceutical companies like Panacea Biotech,<br />

an India-based vaccine manufacturer, <strong>to</strong> deduct up<br />

<strong>to</strong> 150% of costs on its research and development<br />

facilities among other tax-advantaged opportunities.<br />

54 Mukherjee, Dr. Shirshendo. Strategic Adviser,<br />

R&D Initiative, India Technology Transfer, Wellcome<br />

Trust. Interview by authors. New Delhi, India,<br />

November 4, 2010.<br />

55 Ganguly, Dr. N.K., Former Direc<strong>to</strong>r General<br />

of Indian Council of General Research. Interview<br />

by authors. New Delhi, India, November 4, 2010.<br />

56 Mukherjee, Dr. Shirshendo, Strategic Adviser,<br />

R&D Initiative, India Technology Transfer, Wellcome<br />

Trust. Interview by authors. New Delhi, India,<br />

November 4, 2010.<br />

57 Favorov, Dr. Michael, Deputy Direc<strong>to</strong>r General<br />

Translational Research Division, International<br />

<strong>Vaccine</strong> Institute. Interview by authors. Seoul,<br />

South Korea, November 4, 2010.<br />

58 Smith, Dr. Greg, Production and Quality Control<br />

Coordina<strong>to</strong>r, International <strong>Vaccine</strong> Institute.<br />

Interview by authors. Seoul, South Korea, November<br />

4, 2010.<br />

59 Khera, Dr. Ajay. Interview by authors. New<br />

Delhi, India, November 3, 2010.<br />

60 Baiden, Frank, Abraham Hodgson, and Fred<br />

Binka. “Edi<strong>to</strong>rial: Demographic surveillance<br />

sites and emerging challenges in international<br />

health.” Bulletin of the World Health Organization 84,<br />

no. 3 (2006).<br />

61 Grabowski, Henry. “Encouraging The Development<br />

Of New <strong>Vaccine</strong>s.” Health Affairs 24, no.3<br />

(2005): 697-700.<br />

62 Whitehead, P and Pasternak, A “Lessons<br />

learned: new procurement strategies for vaccines.”<br />

Report <strong>to</strong> the GAVI Board, June 2002. Bos<strong>to</strong>n:<br />

Mercer Management Consulting<br />

63 Ibid.<br />

64 PriceWaterhouseCoopers Health Care Group,<br />

“Emerging Market Report: Health in India 2007.”<br />

PriceWaterhouseCoopers (2007).<br />

65 Bardhan, Pranab “The State Of Health Services<br />

In China And India: A Larger Context.”<br />

Health Affairs 27, no. 4 (2008): 933-936.<br />

66 Chee, G., Molldrem, V., Hsi, N., and Chankova,<br />

S. “Evaluation of the GAVI Phase 1 Performance<br />

(2000-2005).” Report prepared for GAVI Alliance,<br />

(Oc<strong>to</strong>ber 2008).<br />

67 UNICEF website “GAVI” http://www.unicef.<br />

org/supply/index_gavi.html (accessed December<br />

29, 2010).<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11


68 Ganguly, Dr. N.K. Former Direc<strong>to</strong>r General of<br />

Indian Council of General Research, Interview by<br />

authors. New Delhi, India, November 4, 2010.<br />

69 Vinod, Dr. P., Chief of Pediatrics, All India<br />

Institute of Medical Sciences, interviewed by authors,<br />

New Delhi, India, November 3, 2010.<br />

70 Khera, Dr. A., Deputy Commissioner, MCH<br />

Ministry of Health & Family Welfare, New Delhi,<br />

India, November 3 2010.<br />

71 WHO “Human papillomavirus vaccines WHO<br />

position paper.” Weekly epidemiological record 84 no.<br />

15 (April 9, 2009): 117–132.<br />

72 Ibid.<br />

73 IAVI and PATH “HPV vaccine adoption in developing<br />

countries: Cost and financing issues” New<br />

York: IAVI (2007): 1-40. Available at: http://www.<br />

rho.org/files/IAVI_PATH_HPV_financing.pdf.<br />

74 WHO “Human papillomavirus vaccines WHO<br />

position paper.” Weekly epidemiological record 84 no.<br />

15 (April 9, 2009): 117–132.<br />

75 Centers for Disease Control and Prevention<br />

website. “Rotavirus Homepage” http://www.cdc.<br />

gov/rotavirus/index.html (accessed Oc<strong>to</strong>ber 28,<br />

2010).<br />

76 Kossinets, G. and Watts, D.J., “Origins of Homophily<br />

in an Evolving Social Network.” American<br />

Journal of Sociology 115 (2009): 405-450.<br />

77 Chandran A., Fitzwater S., Zhen A., and San<strong>to</strong>sham<br />

M., “Prevention of Rotavirus Gastroenteritis<br />

in Infants and Children: Rotavirus <strong>Vaccine</strong><br />

Safety, Efficacy, and Potential Impact of <strong>Vaccine</strong>s.”<br />

Biologics 9, no. 4 (2010): 213-229.<br />

78 Ruiz-Palacios, G., et al., “Safety and Efficacy<br />

of an Attenuated <strong>Vaccine</strong> Against Severe Rotavirus<br />

Gastroenteritis.” The New England Journal of Medicine<br />

354 (2006): 11-22.<br />

79 Madhi, S.A., et al., “Effect of Human Rotavirus<br />

<strong>Vaccine</strong> on Severe Diarrhea in African Infants.”<br />

The New England Journal of Medicine 362 (2010): 289-<br />

298<br />

80 WHO, “<strong>Global</strong> use of rotavirus vaccines recommended.”<br />

Joint News Release of WHO, GAVI,<br />

and PATH on June 5, 2009. Available at: http://<br />

www.who.int/mediacentre/news/releases/2009/<br />

rotavirus_vaccines_20090605/en/index.html (accessed<br />

December 27, 2010).<br />

81 South Africa, Brazil, Canada, Colombia, Ecuador,<br />

El Salvador, Honduras, Mexico, Nicaragua,<br />

Panama, U.S., Venezuela, Bahrain, Qatar, Austria,<br />

Belgium, Finland, Luxembourg, Australia, and Palau.<br />

82 WHO website, “Cholera Factsheet” http://<br />

www.who.int/mediacentre/factsheets/fs107/en/index.html<br />

(accessed December 27, 2010).<br />

83 Ibid.<br />

84 WHO Department of Immunisation, <strong>Vaccine</strong>s,<br />

and Biologics, “2006 Report of the Steering Committee<br />

on Dengue and other Flavivirus <strong>Vaccine</strong>s including<br />

Minutes of the Steering Committee Meeting.”<br />

Geneva: WHO (May 15-17, 2006).<br />

<strong>Leveraging</strong> <strong>Public</strong> <strong>Private</strong> <strong>Partnerships</strong> <strong>to</strong> <strong>Address</strong> <strong>Global</strong> <strong>Vaccine</strong> Needs 2010-11<br />

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