The Future of Subsidized Malaria Drugs (ACTs)

In November 2012, the Board of the Global Fund meets to determine the future of the Affordable Medicines Facility – malaria. Should it be cut, to make better use of limited funds? Or does it still have a role to play in the fight against malaria?

In late 2009, the Global Fund to Fight AIDS, Tuberculosis and Malaria (hereafter, the Global Fund) launched an initiative called the Affordable Medicines Facility – malaria (AFMm), designed to improve access to artemisinin-based combination therapies (ACTs) to malaria endemic countries. The motivation for the facility was two-fold: first of all, there was a realization that the current prices of ACTs were prohibitive for most inhabitants of malaria-endemic countries, particularly if they sought health care via for-profit private clinics. Secondly, in contrast to the high price of ACTs, artemisinin monotherapies were widely available and much more affordable, leading to fears about the emergence of resistance. ACTs are thought to be more robust against resistance, and so by lowering the price, the AMFm hoped to improve market share against monotherapies, and also make ACTs more widely available to developing country populations.

The mechanism decided on by the Global Fund was relatively straightforward. The AMFm would negotiate with the manufacturers of ACTs and pay them directly a proportion of the cost of the drug. The remainder, roughly 20% of the total in most cases, would then be paid for by whole-sale drug distributors in target malaria-endemic countries, many of which are in sub-Saharan Africa. As they were able to purchase the drug at low cost, these whole-sale distributors, many of which were in the private sector, could still make a profit without passing on prohibitive costs to their customers. As mentioned above, the hope was that this would increase local people’s ability to purchase ACTs, and move them away from the less effective monotherapies that were also available. The first trials of the scheme were started in early 2010; now, less than three years later, the Board of the Global Fund is poised to decide whether the AMFm should continue in a modified form, or, due to wide-scale funding shortfalls, it should be abandoned entirely.

pharmacy liberia erik hersman flickr

A small-scale, for-profit private sector pharmacy in Liberia. Such pharmacies supple a large proportion of anti-malarial drugs in some countries in sub-Saharan Africa (Photo courtesy of Erik Hersman, via Flickr).

Of course, the overall aim of the Global Fund is to reduce malaria morbidity and mortality, and the mandate of the AMFm is along the same lines; however, such an outcome was never going to be a plausible metric in the few short years since the facility’s inception. So how should the success of the AMFm be judged? Two papers [1,2] were published in this week’s issue of Science magazine, one of the world’s leading scientific journals, shed light on the achievements of the AMFm, though without shying away from some ways in which it has perhaps fallen short. Overall, both recommend the future continuation of the AMFm, albeit with changes to its remit.

One way in which the effects of the AMFm can be judged is through studying ACT availability in different markets in the countries which received subsidized medication. Overall, most research seems to have demonstrated that ACT availability has increased, and particularly in rural areas and in the private sector. However, in many countries surveyed, monotherapies were also still available, maintaining fears that artemisinin resistance could arise in Africa, as it appears to have in parts of Asia. However, just because medications are available does not mean they are being taken appropriately, and this is a key point made by both sets of authors.

Indeed, the analysis by Cohen et al. suggests that in many settings, the market for purchase of ACTs is much larger than the actual need, based on the number of people seeking treatment for malaria in the private sector versus the actual numbers of malaria cases. While this is good news for the private sector, in terms of making profits from sale of malaria treatment, it also implies that overtreatment remains a large issue, and thus the subsidy provided by the AMFm is not being put to the best use. Of course, the scale of this issue varies from country to country; those with high malaria endemicity probably have lower rates of overtreatment since more people are likely to require treatment; likewise, younger children (particularly those under the age of five) are more likely to have malaria than adults, and so overtreatment is less of an issue in this age group. I have mentioned overtreatment in previous blogs as a potentially enormous problem in many parts of Africa; both authors make it clear that addressing the issue of overtreatment is crucial is determining a future direction for the AMFm.

A promising avenue of engagement for reduced overtreatment is through improving diagnosis. Therefore, the authors suggest, the AMFm could seek to reduce its involvement in providing subsidies for countries with high levels of overdiagnosis. Instead, in these settings, the money could be redirected into providing affordable malaria rapid diagnostic tests (mRDTs), which are extremely effective, easy to use, and provide an accurate indication of whether malaria treatment is actually required. For countries with lower rates of overdiagnosis, subsidies could continue, though one way of making them more effective could be to pass the price negotiations into the hands of the whole-sale drug distributors, rather than being handled exclusively by the Global Fund. The AMFm could still step in to fill pricing shortfalls, but letting individual companies lead the negotiations will improve outcomes, and also improve long-term sustainability of the program: as countries become more developing, AMFm can slowly reduce funding, allowing the market, and the populace, to step up their investment.

mRDT Gates Flickr

A typical lateral flow malaria rapid diagnostic test. These tests may fill a crucial role in improving diagnosis of malaria, particularly in areas where overtreatment is rife (Photo courtesy of Prashant Panjiar at the Gates Foundation, via Flickr).

The issue of diagnosis also brings forth a broader point, which is that of integrated management of disease, another topic I have discussed before, though previously in the context of neglected tropical diseases. In these papers, both authors make a point to mention that fevers in malarial countries are not always caused by malaria; the use of mRDTs can help elucidate when malaria is not the cause, but it does help when it comes to finding out the actual cause of illness. Instead, countries, and, by association, development donors, should look ahead to promoting integrated management of febrile illnesses. This way, as efforts to combat malaria continue, and continue to be successful, health systems will be ready to deal with the changes in proportion and prevalence of other diseases, as malaria becomes less of a leading cause of morbidity and mortality.

References

  1. JM Cohen, AM Woolsey, OJ Sabot, PW Gething, AJ Tatem & B Moonen  (2012). Optimizing Investments in Malaria Treatment and Diagnosis, vol. 338, no. 6107, pp 612-614.
  2. R Laxminarayan, K Arrow, D Jamison & BR Bloom (2010). From Financing to Fevers: Lessons of an Antimalarial Subsidy Program, vol. 338, no. 6107, pp 615-616.

Looking Ahead to 2012 and Beyond – What is the Future of the Global Fund?

At the beginning of December I went to the 60th annual meeting of the American Society of Tropical Medicine and Hygiene. Attended by over 3500 scientists, practitioners, clinicians and students from around the world, the meeting is one of the pre-eminent global events for discussing and disseminating information related to all tropical diseases and health issues. Malaria, as you might expect, has a strong presence among the symposia, posters and presentations, with research on all aspects of its transmission, biology, molecular structure, epidemiology, control and more. [Read more…]

NetGuarantee: Financing Speeds Delivery of Mosquito Nets

NetGuarantee, a new innovative finance facility, announces its first transaction with Zurich in North America, part of the Zurich Financial Services Group, to celebrate World Malaria Day today, April 25. This collaboration will help accelerate access to and advance the delivery of vital malaria prevention tools in Africa by six to 10 months, and shows how core business competencies and best practices can improve efficiencies in global health and save lives.

[Read more…]

The Global Fund to Fight AIDS, Tuberculosis and Malaria Welcomes Passage of 2011 U.S. Budget

The Global Fund to Fight AIDS, Tuberculosis and Malaria has welcomed passage of the continuing resolution for the Fiscal Year 2011 U.S. budget which contains a US$1.05 billion contribution to The Global Fund.

“I offer my sincere thanks to the U.S. on behalf of the millions of people around the world who benefit from resources channeled through The Global Fund. I am grateful to President Obama and the U.S. Congress for this vote of confidence in the Global Fund and for standing firm by U.S. commitments to global health despite significant pressure to reduce budget deficits,” said Professor Michel Kazatchkine, Executive Director of The Global Fund. “Tens of thousands of lives will be saved as a direct result of this budget. And I hope that it will inspire other countries to follow the lead of the United States.”

With total commitments of more than US$ 22 billion to grants in 145 countries, The Global Fund provides two thirds of all international funding to fight TB and malaria and supports programs providing AIDS treatment to more than half of all the people who need it in the developing world. The United States contributions make up nearly one third of the total commitments to the Global Fund.

During testimony before the House Appropriations Subcommittee on State, Foreign Operations and Related Programs last Thursday just hours before the vote in the House and the Senate, Dr. Christoph Benn, the Global Fund’s Director of External Relations and Partnerships, thanked the Obama Administration and Congress for their continued support leading to a bipartisan effort to protect international health funding despite the significant budgetary pressures.

“The Global Fund fully understands that these are difficult economic times and that hard choices have to be made,” Dr Benn told the committee. “However, the resources allocated to the Global Fund, as well as the U.S. bilateral programs PEPFAR and PMI, represent excellent value for money.” Dr. Benn made clear that with continued U.S. leadership, The Global Fund can leverage U.S. funding so we can “turn the corner on the three diseases and increase stability, growth and security around the globe.”

Source: The Global Fund to Fight AIDS, Tuberculosis and Malaria

A Case for Evidence-Based Communication Campaigns in Angola

Mosquito Nets Angola

A mother carries home LLINs for her family following a net distribution campaign. Source: PSI/Angola

Malaria is one of the largest health concerns in Angola, particularly for pregnant women and young children. Using a long-lasting insecticide-treated net (LLIN) can greatly reduce the risk of malaria. The Ministry of Health is scaling up malaria control activities with expansion of net distribution as well as communication activities for behavior change to encourage the use of a net every night.

With support from the President’s Malaria Initiative and ExxonMobil, the Global Fund to Fight AIDS, Tuberculosis and Malaria, Population Services International (PSI) works with the National Malaria Control Program to develop communication campaigns based on evidence gathered through research to promote healthier behaviors for malaria control.

All communication campaigns are based on in-depth research into behaviors related to malaria control. These results help target communication campaigns to achieve the desired behavior change for malaria prevention and treatment. A recently completed qualitative study supported by Global Fund Round 7 looked at behaviors and beliefs of pregnant women and caregivers of children under the age of 5 years to further understand why mosquito nets are or are not used. In-depth interviews were complemented by a photo narrative of the women’s lives, where study participants took pictures of important factors in their lives that influence their health and the health of their children. Results were analyzed by groups – those who always use a net and those who do not consistently use a net. [Read more…]

Global Fund Responds to News Stories About Corruption in Grant Spending

Officials from the Global Fund to Fight AIDS, Tuberculosis and Malaria are criticizing recent media reports of misuse of Global Fund grants. They say the reports are based on incidents that occurred and were acted on last year and contain no new revelations.

The media reports claim corruption is taking a big bite out of the billions of dollars of grant money disbursed by the Global Fund. And, they contend as much as two-thirds of some grants are used fraudulently.

The Fund’s Executive Director, Michel Kazatchkine, says the Global Fund has zero tolerance for corruption and actively seeks to uncover any evidence of misuse of its funds.

He says the incidents referred to in recent media reports concern the grave misuse of funds in four of the 145 countries that receive grants. He says those cases figured prominently in last year’s Inspector General’s report.

“As a result, immediate steps were taken in Djibouti, in Mali, in Mauritania and in Zambia, to recover misappropriated funds and to prevent future misuse of grant money,” he said. “In total, the Global Fund is demanding the recovery of $34 million unaccounted for in these and other countries out of a total disbursement of $13 billion.”

Kazatchkine says criminal proceedings are underway in Mali, Mauritania and Zambia. He says the Fund has suspended relevant grants in Mali and Zambia and ended another grant in Mali.

Kazatchkine says transparency is a fundamental principle behind all of the work of his organization. He adds the Global Fund is fully accountable to its donors about all of its expenditures and is committed to preventing any misuse of its money.

”What is of concern to me, of course, is that this shakes beyond that a global public opinion somehow at a time when governments are under pressure to cut public expenditures and where millions of lives that depend on the Global Fund and the hope the Global Fund is bringing to the world could thus be at risk,” said Kazatchkine.

Kazatchkine says the lives of 4,000 people suffering from AIDS, tuberculosis and malaria are saved every day as a consequence of the grant money disbursed by the Fund.

He says the Fund and the Office of the Inspector General are strengthening efforts to prevent fraud. He says so-called higher risk countries are being closely monitored to make sure none of the money goes astray.

Source: VOA