- October 13, 2021
- Posted by: samdenis
In January 2013, Bayer took the first step. It agreed to supply its Jadelle implants at $8.50 per unit, which represents a 53 percent reduction, in exchange for a warranty for orders of at least 27 million units over six years — about 3 to 5 million units per year. The agreement provided for the purchase of a product worth $25.5 million $US the first year. The agreements provide a guarantee from the Gates Foundation and other donors that NGOs and others will buy a certain (and large) quantity of contraceptive implants, in exchange for a commitment by pharmaceutical companies to increase production and lower prices. Through a long-term fixed-price contract, the consortium of lenders undertook to compensate for any loss of buyer demand. Even if prices are lower, increased volumes can lead to higher profits – a classic win-win situation for consumers and producers. What might also have a practical interest is that the court did not consider the TWTA to be the first agreement between the parties. This shows that the parties must bear in mind that oral agreements are as valid as written agreements. A signature is not required. The results of the prevention agreements exceeded expectations. A report estimates that savings on Bayer`s Jadelle implant could prevent more than 280,000 deaths in children and 30,000 mothers, as well as more than 20 million unwanted pregnancies.
According to the World Health Organization (WHO), waiting at least two or three years between pregnancies reduces infant and child mortality and benefits maternal health. In very young women, contraceptive use delays the first pregnancies, which are at higher risk. In the absence of intentional interventions, the virtuous cycle of high volume and low prices is often blocked by the perception of risk. If real money needs to be invested to meet uncertain future demand, most companies oppose it. Quantitative guarantees eliminate the long-term financial risk of increased capacity by promising producers predictable long-term sales. The determining factor in such disputes is not so much the foreseeability of the circumstances at the time of the entry into force of an agreement as what the parties had in mind when they were concluded. . . .