In Africa and South Asia, it is a challenge for many people to get access to a dependable supply of effective medicines at an affordable price.
We are extending our approach to develop new strategies tackling specific market failures that hold back development. That’s why, in November 2017, we established MedAccess, with an initial capital commitment of $200 million, to increase patient access to life-changing medical supplies in Africa and South Asia.
How MedAccess creates impact
The medical supplies that patients need are often out of stock, unaffordable or not yet distributed in their country. MedAccess provides ‘volume guarantees’ for medical supplies to tackle this problem. This type of agreement is a contract between MedAccess and the suppliers of medicines or medical equipment, where MedAccess pledges to make up any shortfall in demand. By lowering the risk in uncertain markets, the medical supplies can be offered at a lower price. In return a buyer, such as the government, can purchase enough to meet demand. Ultimately, making more affordable products available helps everyone in the supply chain get quality medical supplies to patients.
Volume guarantees are a proven method of increasing access to medical supplies in developing countries, pioneered by the Bill and Melinda Gates Foundation. MedAccess will build on this proven method to work where there is the opportunity to save money and substantially improve lives.
These agreements enable buyers, such as individuals, community clinics, and governments, to save money which can be channeled to other health priorities. Volume guarantees can also accelerate the arrival of new products or suppliers to market, which increases the diversity of products available and the reliability of supply. Everything that MedAccess does is with the goal of improving the health of people living in developing countries, contributing to the UN’s Global Goals, particularly Goal 3 on ‘Good Health and Wellbeing’.
More about MedAccess
MedAccess is a wholly-owned subsidiary of CDC, and is supported by the UK Department for International Development (DFID). It works in partnership with others, bringing capital and credit risk management skills to wider coalitions led by governments and international agencies. It is an independent, not-for-profit company, governed by an independent Board of Directors and is open to third party investors seeking a high social impact for grant or returnable capital investment.
If you would like more information, please contact Michael Anderson, MedAccess’ CEO, firstname.lastname@example.org