GlaxoSmithKline has sealed an innovative €1.5bn (£1.38bn) contract with Brazil guaranteeing sales of its pneumococcal vaccine, designed to prevent pneumonia and meningitis, over the entire life of the product.

The deal marks a watershed in negotiation of a long-term contract in a way that provides GSK with an agreed price and volume, starting at €11.50 a dose and falling to €5 in future years.