OBJECTIVES: National Immunization Programs (NIP) are currently challenged to the security of supply of vaccines especially basic vaccines in which producers moved away from producing. Our aim is to estimate the economic impact of different procurement strategies for Live attenuated-Japanese encephalitis (LAJE) vaccine form a societal perspective.

METHODS: The decision-analytical model was developed to evaluate the impact of different procurement strategies includes current purchasing method (year to year procurement), multi-year tender, regional pooled procurement and procurement from the local manufacturers. Economic impact was estimated by including the procurement cost of LAJE and the probabilities and consequences of outbreak if vaccine shortage. Input parameters were obtained from published literature and expert opinion including probabilities of shortage.

RESULTS: Vaccine procurement costs were based on the negotiating power of the government with the cheapest procurement costs of US$ 187.98 million (local manufacturers) followed by US$ 216.45, US$ 232.28, US$ 262.70 million for regional pooled procurement, multi-year tender and current purchasing, respectively. Local manufacturers were assumed the most secured source of vaccine and as a consequence the lowest chance of JE infection with the JE treatment costs of US$ 0.99, 1.22, 1.22 and 1.31 million for purchasing from local manufacturers, multi-year tender, pooled procurement and current purchasing, respectively. Switching from current purchasing strategy to purchasing from local manufacturers would save the country’s budget by US$ 75.10 million in 30 years. The results show the same trend with multi-year tender and pooled procurement options.

CONCLUSIONS: The results support economic rationale for purchasing the vaccines from local manufacturers especially if vaccine price is cheaper and security of supply is higher. To ensure cheaper and more secure source of vaccine, government should thus support the vaccine production with an exchange of the guaranteed vaccine price and vaccine delivery.