A volume guarantee is an agreement with price and volume commitments of a product. The objectives of volume guarantees are to increase demand and ensure stable, affordable supply.
In the health sector, it involves a guarantor (such as MedAccess) entering into a partnership with a healthcare manufacturer and a governor or another procurer such as a global health institution.
Sell the product at or below the agreed ceiling price(s) during the term of the agreement.
Make an agreed minimum volume of product available for each year of the guarantee.
Conduct supporting regulatory and other activities, including registration, product support, and pharmacovigilance.
By encouraging changes in behaviour of suppliers and purchasers, volume guarantees address market failures that restrict wider access to healthcare interventions. They deliver reduced prices to drive higher demand and improved health outcomes while also realising significant cost savings for donors and other funders.