[Editor’s Note: We do not generally cover – and do not in any way endorse – commercial market research about the vaccines sector. But we do recognize the rapid growth of the vaccine industry and the revenue and profit contribution of vaccines in a number of pharma companies. These dynamics clearly affect vaccine ethics and policy. The research below provides projections about the scale and projected growth of the sector and is interesting in that regard.]
Research and Markets: By 2016, the Global Vaccines Market is Expected to Generate More Than Twice the Annual Revenue of 2009
“The global vaccines industry was valued at $24 billion in 2009 and is expected to reach $52 billion in 2016 at a Compounded Annual Growth Rate (CAGR) of 11.5%. The vaccines market, which was once considered a low-profit segment of the top players’ portfolios, showed a turnaround after the resounding success of Prevnar, the first blockbuster vaccine. The ability of vaccines to generate high revenue and profits despite being priced at a premium has proven attractive to both existing players in the market and to big pharmaceutical companies who have been watching the development of the market with interest.
“The surge in revenues and growth rates came at a time when the pharmaceutical industry was under huge pressure from patent expiries and weakened pipelines. The pharmaceutical industry has been intent on strengthening their revenue streams and streamlining operations through lay-offs and shutdowns of manufacturing and R&D operations. The success of premium priced vaccines such as Prevnar, Gardasil, and Cervarix has prompted big pharmaceutical players such as Pfizer and AstraZeneca to invest in the vaccines industry which promises safe revenues due to a lack of threat from generics….”
“…The authors analyze that licensing and co-development agreements are characteristic of the global vaccines market where technologies and development platforms are highly dispersed amongst small and big companies. Smaller vaccine companies that do not have the financial muscle to compete against the top vaccine players make use of their technologies to generate revenues through royalties and through other revenue sharing agreements. Also, a number of public-private partnerships help the vaccines industry develop interventions for new diseases
‘”The global vaccines industry is a difficult industry for smaller companies to succeed in due to the high development costs required for licensing, acquisitions, marketing and manufacturing. Vaccine companies with promising candidates in the pipeline engage in out-licensing agreements with the top players, who in turn provide marketing, sales, and regulatory support. However, the vaccines industry remains an attractive one for large and small companies alike due to its potential to generate revenues from smaller disease populations too. Hence, the vaccines industry is expected to remain highly active in the future fuelled by the encouragement and financing from governments and other health organizations.”