Differential Pricing UNFPAs Experience With Contraceptives Christian Saunders, Chief, Procurement...
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Transcript of Differential Pricing UNFPAs Experience With Contraceptives Christian Saunders, Chief, Procurement...
![Page 1: Differential Pricing UNFPAs Experience With Contraceptives Christian Saunders, Chief, Procurement Services.](https://reader036.fdocuments.us/reader036/viewer/2022062618/551504dc550346a80c8b5593/html5/thumbnails/1.jpg)
Differential Pricing UNFPA’s Experience With
Contraceptives
Christian Saunders, Chief, Procurement
Services
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Every Minute in the World
380380 women become pregnant
190 of these women190 of these women did not plan or do not wish the
pregnancy
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110 women110 women experience a pregnancy-related complication
4040 womenhave an unsafe abortion
1 woman1 woman dies from a pregnancy related cause
Every Minute in the World
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650 people650 peopleare infected are infected
with a curable STIwith a curable STI
Every Minute in the World
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10 people10 people are infected with HIV
Every Minute in the World
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ICPD +5 Governments should strive to ensure that
by 2015 all primary health-care and family planning facilities are able to provide directly or through referral, the widest achievable range of safe and effective family planning and contraceptive methods; Essential obstetric care; Prevention and management of reproductive tract infections, including sexually transmitted diseases; And barrier methods, such as male and female condoms and
microbicides if available, to prevent infection.
Paragraph 53, ICPD +5
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The United Nations Population Fund (UNFPA) Advancing universal access to reproductive health· Family planning and safe motherhood· Preventing sexually transmitted infections, including HIV/AIDS · Care for consequences of unsafe abortion· Eliminating harmful traditional practices
Advocating informed, responsible and free choices· Women’s rights to health, education and freedom from violence· Sustainable development
Formulating population strategy & policy· Partnerships with governments, NGOs, the private sector and UN agencies· Research on population issues
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For every $1 million shortfall in contraceptive commodity assistance:
• Increase in the number of unintended pregnancies: 360,000360,000
• Additional induced abortions: 150,000150,000
• Additional maternal deaths: 800800
• Additional infant deaths: 11,00011,000
• Additional deaths of children under 5: 14,00014,000
Does Price matter?
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Procurement
• UNFPA is the largest public sector purchaser of contraceptives. Also supplies commodities for social marketing programmes.
• Procurement undertaken by UNFPA is carried out through a fair & transparent process.
• UNFPA utilizes competitive bidding and direct negotiation in the case of proprietary products.
• Long term pricing agreements have been negotiated with many of the manufacturers.
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UNFPA vs. MARKET PRICE
(US$) UNFPA US MARKET
• Condom (piece) 0.025 0.50• IUD (Unit) 0.430 350.00• Injectable (dose) 0.675 65.00• OCs (cycle) 0.175 30.00• Spermicides (tablet) 0.060 1.20• Implants (set) 23.000 393.00
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Cost per year of coverage
(US$) UNFPA US MARKET
• Condom 3.75 75.00• IUD 0.10 70.00• Injectable 2.70 65.00• OCs 2.10 360.00• Spermicides 9.00 180.00• Implants 4.60 79.00 • Surgical (female) 1.06• Surgical (male) 0.60
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• Volume
• Procurement Process
• Market Share
• Image
• Philanthropy
Possible Factors Affecting Price!
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Procurement Volume
$20.00$25.00$30.00$35.00$40.00$45.00$50.00$55.00
Year
US$
(Mill
ions
)
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Procurement Process
– Competition– Experience– Professionalism– Quality – Single client– Uncomplicated– Transparent– Long term partnership with strategic suppliers– Standardization– Forecasting allowing for planned production– Flexibility– Guaranteed Payment
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ORAL CONTRACEPTIVES -‘THE PILL’
0.10.120.140.160.18
0.20.220.24
YEAR
US
$
UNFPA USAID
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CONDOMS
00.010.020.030.040.050.060.07
YEAR
US$
UNFPA USAID
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INJECTABLES
0.60.65
0.70.75
0.80.85
0.90.95
1
YEAR
US$
UNFPA USAID
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IUDs
0.30.50.70.91.11.31.51.7
YEAR
US$
UNFPA USAID
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SPERMICIDES
0
0.05
0.1
0.15
0.2
YEAR
US$
UNFPA USAID
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Sub dermal Implants
10
15
20
25
30
YEAR
US$
UNFPA USAID
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Source Of Procurement
0102030405060708090
YEAR
PE
RC
EN
TA
GE
Developing CountriesDeveloped Countries
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Differential Pricing PROPRIETORY PRODUCTS
Example
Product ‘X’
(Oral Contraceptive Under Patent)
UNFPA's price US$ 0.364/cycle
US Market price : US$ 34.00/cycle
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“Rapid population growth and high fertility hold back development and help to perpetuate poverty.”
179 countries adopted the ICPD Programme of action in Cairo in 1994. Five years later, a review identified key areas for urgent action. .
- Contraceptives for couples wishing to space or limit families.
- Condoms, voluntary testing and counseling to reduce the spread of HIV/AIDS among young people.
Availability of a wide range of safe and effective family planning methods.
Births assisted by skilled attendants.
- Literacy for women and girls.
- School enrolment, especially for girls.
.
UNFPA - Future Action
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The Future
• E-commerce• Competition• Group buying• Standardization • choice vs. security