Pfizer has signed a ten-year provisional supply agreement to supply Prevenar, the company’s 13-valent pneumococcal conjugate vaccine, for infants and young children in the world’s poorest countries.

The decision is part of the Advance Market Commitment (AMC) pilot project, which has also been joined by GSK and seeks to stamp out pneumococcal disease, the leading cause of vaccine-preventable death in children worldwide.

The AMC is a novel public-private approach to public health funding and is designed to create a sustainable marketplace to ensure a stable supply of pneumococcal vaccines and stimulate the development and expansion of manufacturing capacity.

Pfizer chairman and chief executive officer Jeffrey Kindler said that last year, working with the Global Alliance for Vaccines and Immunisation (Gavi), the company contributed the first pneumococcal conjugate vaccine used in a national immuniaation programme in the developing world.

“We are proud to extend our commitment even further,” Kindler said.

The procurement process is administered by the United Nations Children’S Fund and supported by GAVI.

Under the terms of the agreement, the price of the pneumococcal conjugate vaccine under the AMC framework is $7 for the first several years. The vaccine price will include a $3.50 subsidy to be paid by the AMC donor fund, and $3.50 to be paid by GAVI with a co-financing contribution paid by the developing country governments that introduce the vaccine.

Under the AMC framework, participating vaccine manufacturers must make a binding commitment to supply vaccines for ten years at a maximum price of $3.50 per dose to meet long-term demand in developing countries even after the donor contributions are exhausted.