The Global Vaccine Need and Market is Well Understood, well Documented

From a vast plethora of data, three examples:

Vaccine Pricing

The retail price of vaccines vary from $3.14 per dose (GSK, DTP) to $681 per 3-dose treatment (Merck, Gardasil).

Source: CDC Vaccine Price List

Leading pharmaceutical companies and total global vaccine revenue 2017 and 2024

#1 GlaxoSmithKline, #2 Merck & Co, #3 Sanofi, #4 Pfizer, $5 Novavax, #6 Emergent BioSolutions, #7 CSL, #8 Inovio, #9 Bavarian Nordic, #10 Mitsubishi Tanabe

Source: Statista

About Vaccine Manufacturing

Vaccine manufacturing has significant economies of scale, meaning that producing a bigger volume reduces the price per dose. For example, even if a manufacturing plant is producing at only 20% of its capacity, it still has to pay the operating costs of the plant and those costs are divided over fewer doses, therefore driving up the cost per dose. Types of costs relevant for national immunization programs Variable costs have a steady unit cost and could include such items as vials. Every dose of vaccine increases cost. A larger volume means a higher total cost. Semi-­fixed costs have a consistent batch (generally a size of several thousand doses) cost regardless of dose number. So, if a manufacturer is able to produce a bigger batch size, the cost per dose will drop. Fixed costs are the biggest proportion of production costs. These costs are independent of volume and so, as the number of doses produced goes up, unit costs go down. In general, this means that a larger scale of production is cheaper. Most vaccine production costs are either fixed (60%) or semi-­‐fixed (25%) with the remainder (15%) being variable.

Source: Immunization Financing Toolkit. The World Bank and GAVI Alliance 15: The Vaccine Market – Vaccine Production and the Market

Projected Vaccine Market Growth

Source: Markets and Markets