Global Vaccines Markets

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."