14 June 2022
Clifford Chance advises MedAccess on the COVAX financing model to support the global procurement of COVID-19 vaccine doses
International law firm Clifford Chance has advised MedAccess (a British International Investment owned social finance company), working together with Gavi and the Open Society Foundations, to agree an innovative financing model to support the procurement of COVID-19 vaccine doses through the COVAX Cost Sharing Mechanism.
The COVAX Advance Market Commitment (AMC) provides COVID-19 vaccines free of charge for 92 of the world’s lowest-income countries. In addition, AMC countries can also use the COVAX Cost Sharing Mechanism to order more doses using domestic resources or low-cost financing from their multilateral development bank partners.
MedAccess will provide a US$100 million procurement guarantee to enable COVAX to order more doses from manufacturers on behalf of AMC countries choosing to participate in cost-sharing. By purchasing through COVAX, countries benefit from lower prices per dose negotiated for a range of COVID-19 vaccines. The Open Society Foundations will provide a further procurement guarantee of US$100 million alongside MedAccess, through the Soros Economic Development Fund.
The Clifford Chance cross-office team working on this transaction was led by Partner Clare Burgess in London, assisted by Senior Associate Caireen McCluskey in Dubai.
Caireen McCluskey commented: "We are delighted to have been able to support MedAccess on this important transaction. COVID-19 has highlighted global inequities in access to vaccines and other health products. Innovative risk sharing products have the potential to improve vaccine availability and equitable distribution globally."
Clifford Chance has a market-leading track record of advising on roles related to Covid-19 vaccines, including advising Pfizer on its agreement to co-develop the first, UK approved Covid-19 vaccine, HM Government on its investment to scale up Covid-19 vaccine manufacturing capability in the UK and vaccine maker Recbio's Hong Kong IPO.