Biomedical Engineering Reference
In-Depth Information
and manufacturing investments in vaccines, may own vaccine manufacturers,
4
are
important buyers and payers of vaccines, issue vaccination recommendations, and
mandate vaccinations. Moreover, governments and supranational organizations
may take responsibility for the distribution, administration, and marketing of
preventive vaccines through public health campaigns.
Because of their distinctive characteristics compared to therapeutics, this chapter
focuses on preventive vaccines.
13.2
The Vaccine Industry
Based on companies' annual reports, global 2010 sales of the leading vaccine man-
ufacturers are estimated at $23.1 billion (Andrews
2011
). Assuming that these com-
panies account for 80 % of the total market (Kresse and Shah
2010
), this values the
global vaccine market at $28.8 billion, or 3.4 % of the total 2010 global pharmaceu-
tical sales of $856 billion (IMS Health
2011
).
Like for all pharmaceuticals, vaccine sales are generated mainly in high-income
countries. For 2008, it was estimated that 77 % of global vaccine sales came from
high-income markets comprising 14 % of the world's population and 8 % of the
world's birth cohort (Morgon
2011
). The United States represents the largest sales
region (34.6 % of 2009 global vaccine sales), followed by the European Union (EU,
30.4 %), Japan (7.9 %), China (7.4 %), and India (6.4 %) (Sahoo
2010
).
13.2.1
Vaccine Industry Structure
The fi ve largest vaccine manufacturers (GlaxoSmithKline (GSK), Sanofi , Merck &
Co., Pfi zer, and Novartis) are also among the six largest pharmaceutical manufac-
turers overall, although not in the same order (see Table
13.1
). They account for
80 % of global vaccine sales, which is considerably higher than the 27 % share of
global pharmaceutical sales for the top fi ve pharmaceutical companies. Except for
Roche and Lilly, the top ten pharmaceutical companies have stepped up their invest-
ments in the vaccine sector in recent years, signaling the growing strategic role of
vaccines in their corporate portfolio.
At 29 % (GSK) and 32 % (Sanofi Pasteur) the operating profi t margins of the two
leading vaccine companies are comparable to the average 30 % margin of originator
pharmaceutical companies (Table
13.2
). The signifi cantly higher costs of goods
sold of vaccines (38 % vs. 21 % of sales) are compensated mainly by lower market-
ing, sales, and administrative costs (17 % vs. 31 %). The higher vaccine costs of
4
State-owned vaccine manufacturers include the China National Biotec Group (CNBG), the larg-
est vaccine manufacturer in China, the Central Research Institute in India, Butantan and Fiocruz in
Brazil, and PT Biofarma in Indonesia.
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