All our agreements are bespoke
There is no such thing as a template agreement. We tailor our market shaping interventions to address specific access barriers, such as high prices, poor product availability, and insufficient supply. When our financial tools can help unlock access to a medical innovation, we construct partnerships that enable us to achieve sustainable impact.
Through this approach we are building a diverse portfolio of agreements, supporting access to medicines, diagnostics, vaccines, and other technologies across a range of health areas. In each case, we worked closely with partners to understand their needs and challenges, and how we could address them.
We recognise that we are going to need to be even more creative in the future. As countries transition from donor support the burden of non-communicable diseases increases, and emerging threats such as climate change impact global health, market shaping partnerships will become increasingly important.
Volume guarantees reduce manufacturers’ risks of low sales volumes in markets where demand is uncertain. In exchange for improved demand visibility, manufacturers offer lower prices and provide stable supply commitments.
MedAccess enters into legally binding volume guarantee agreements with manufacturers, where we guarantee agreed sales volumes for the duration of the agreement. In return, manufacturers commit to a ceiling price – the maximum price they will charge – and to meet projected demand for the product. Procurers and national governments enter into separate agreements with manufacturers to purchase the product at or below the ceiling price. If sales volumes are lower than the guaranteed levels, we will compensate the manufacturer through a shortfall payment.
Volume guarantees build confidence among all partners. Manufacturers can enter or increase their presence in uncertain markets, as well as scaling up manufacturing capacity, with the assurance that a minimum level of sales volumes is secure. Procurers have predictability on price and supply when placing orders, and benefit from more affordable prices. And countries have visibility on long-term availability when deciding which products to purchase.
Procurement guarantees enable global health procurers to accelerate and increase high-volume procurement and distribution – so that supplies reach people who need them more quickly.
Many healthcare procurement agencies have strict procurement and disbursement rules. For example, orders can only be placed when funding committed by donors has been received.
Procurement guarantees provide a bridge between the time an order is placed and the arrival of funds – enabling the procurer respond to country needs more quickly. Procurement guarantees also enable procurers to enter into high-volume purchase agreements with manufacturers, securing allocations on preferential terms.
Our guarantees give procurers confidence to realise potential demand or operate at greater capacity than would otherwise be possible. End purchasers – such as national governments – benefit from the terms agreed upon by the procurers and the manufacturers, with improved value for money, reduced lag time and quality assurance on purchased products. Patients benefit from faster and wider availability of affordable, high-quality health products.
MedAccess can provide debt finance to suppliers looking to make investments that will expand the supply of critical medical products at affordable prices.
Healthcare manufacturers often struggle to access capital from commercial lenders when an investment project is perceived to be too risky. MedAccess aims to combine its health markets knowledge and market-shaping expertise with debt-financing to support businesses committed to access and sustainable impact.
MedAccess only provides finance to companies that undertake to expand access and improve affordability.
MedAccess can support investments that will expand access to healthcare products and services at affordable prices by providing a loan guarantee to the supplier’s financing providers – for example, commercial lenders – to guarantee the supplier’s payment obligations under a loan.
Loan guarantees can enhance the credit profile of the supplier’s financing and help achieve better terms.