Abstract
Global Vaccine Manufacturers Need to Scale up Operations in Emerging Countries
to Solve Issues of Supply and Demand
Vaccine manufacturers from all over the world have been involved in a
stalemate with governments regarding supply and demand. While governments are
reluctant to ensure steady demand for vaccines unless the manufacturers can
prove their ability to increase their supply, the latter are apprehensive
about increasing production without a guarantee of sustained demand from the
governments. Meanwhile, developing nations are increasingly demanding vaccines
that are no longer included in the immunization schedules of developed
countries. These vaccines will have to be provided at very low costs, which
will not be feasible unless the demand can compensate for the low margins.
Tier 1 participants will have to take the responsibility of supplying vaccines
to emerging markets by leveraging their presence in developing and low-cost
nations such as India and China. By expanding their manufacturing base in
these countries, they can supply to both developed and developing markets.
Manufacturers also benefit from the lucrative private markets, rising economic
prowess, and increased awareness of vaccines in these regions.
This Frost & Sullivan analysis examines the global vaccines markets,
segmenting it into North American, European, and Rest-of-World regions. This
study discusses the prevailing market drivers and restraints as well as
enables companies to align their positioning strategies to benefit from the
changing market conditions.
Strong Pipeline of Vaccines Hold Manufacturers in Good Stead in Developed
Markets
Manufacturers that operate in saturated markets have to constantly launch new
vaccines or improved versions with increased coverage and efficacy. Since the
time to market for a vaccine is 12-14 years, it is vital for companies to have
strong and well-developed product portfolios in the market as well as in the
pipeline to ensure consistent growth.
Vaccine manufacturers, especially the top five, have robust pipelines. "There
are at least 14 vaccines in phase III/registration phase that can ensure high
growth with their inclusion in the national immunization programs across the
United States and Europe," says the analyst of this study. "Two of these
vaccines -- against Rotavirus and Human Papilomavirus (HPV) -- are likely to
be the chief tools in building a strong foundation for growth of the vaccines
market, which can be utilized by other products including the next-generation
vaccines."
Regional Vaccine Manufacturers Take Advantage of Rising Costs to become Global
Participants
Regional manufacturers have wrested the advantage from the major vaccine
manufacturers that are pressured by rising costs and limited budgets for
immunization programs. With the momentum shifting in their favor and providing
them with a platform to expand their presence, regional participants have
entered the global vaccines market. They have received ample financial support
from the vaccine fund and other aid agencies for long-term funding of
immunization programs.
Such backing has ensured consistent demand, which has, in turn, encouraged
companies to supply large volumes of vaccines. "A large number of regional
vaccine manufacturers have entered the market, thereby reducing cost and
increasing supply," notes the analyst. "Eventually, these manufacturers can
enter developed markets and expand their business into more profitable
ventures."
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