Interventions for an Artemisinin-Based Malaria Medicine Supply Chain

49 Pages Posted: 22 Nov 2014

See all articles by Burak Kazaz

Burak Kazaz

Syracuse University - Whitman School of Management

Scott Webster

Arizona State University

Prashant Yadav

Harvard Medical School

Date Written: November 11, 2014

Abstract

Artemisinin combination therapy, the most effective malaria treatment today, is manufactured from an agriculturally derived starting material Artemisia annua. Artemisinin, the main ingredient in malaria medicines, is extracted from Artemisia leaves and used in the production of medicine for treating malaria.

The artemisinin market has witnessed high volatility in the supply and price of artemisinin extract. A large fraction of malaria medicines for endemic countries in sub Saharan Africa is financed by the Global Fund to Fight AIDS, TB, and Malaria and the US President’s Malaria Initiative. These agencies together with the World Health Organization, UNITAID, the United Kingdom Department for International Development and the Bill and Melinda Gates Foundation are exploring ways to increase the level of artemisinin production, reduce volatility of artemisinin prices, and improve overall access to malaria medicines for the population.

We develop a model of the supply chain, calibrate the model using field data, and investigate the impact of various interventions. Our model shows that initiatives aimed at improving average yield, creating a support-price for agricultural artemisinin, and a larger and carefully managed supply of semi-synthetic artemisinin have the greatest potential for improving supply and reducing price volatility of artemisinin-based malaria medicine.

Keywords: malaria; health care; supply and demand uncertainty

JEL Classification: M11, I10

Suggested Citation

Kazaz, Burak and Webster, Scott and Yadav, Prashant, Interventions for an Artemisinin-Based Malaria Medicine Supply Chain (November 11, 2014). Available at SSRN: https://ssrn.com/abstract=2528785 or http://dx.doi.org/10.2139/ssrn.2528785

Burak Kazaz (Contact Author)

Syracuse University - Whitman School of Management ( email )

721 University Avenue
Syracuse, NY 13244
United States
(315) 443-7381 (Phone)
(315) 442-1461 (Fax)

HOME PAGE: http://https://bkazaz.expressions.syr.edu/

Scott Webster

Arizona State University ( email )

W.P. Carey School of Business
350 E. Lemon St
Tempe, AZ 85282
United States

Prashant Yadav

Harvard Medical School ( email )

25 Shattuck St
Boston, MA 02115
United States

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