New Report says “Vaccine Market” Worth $61 Billion by 2020.
The business of vaccines is soon to become a major source of profits for the world’s largest pharmaceutical corporations. A press release (Business Wire, January 21st 2016) published by marketwatch.com says that Technavio, one of the leading technology research and advisory companies in the world predicts that pharmaceutical corporations who produce vaccines will reach an estimated $61 billion in profits by 2020.
Today the vaccine market is worth close to $24 billion. The report titled ‘Global Human Vaccines Market 2016-2020’ gives an “in-depth analysis” of the possible revenues and “emerging market trends” globally. According to the Press Release:
The report study indicates that the introduction of new products is fueling the growth of the market. Moreover, the significant expansion of the current product offerings is also expected to boost the market growth. Due to the increasing prevalence rates of various infectious diseases such as diphtheria, influenza, hepatitis, pneumococcal diseases, and meningococcal diseases, there has been a notable increase in the use of vaccines across the globe
What is interesting about the report is that Pharmaceutical corporations are targeting Latin America and the Caribbean with its new vaccines soon to be on the market. Merck & Co, Pfizer and GlaxoSmithKline (GSK) are expected to dominate Latin America and the Caribbean (Puerto Rico currently operates as a manufacturing hub for Merck, Pfizer and Abbott Laboratories):
In terms of geography, the Americas dominated the global human vaccines market in 2015, accounting for about 45% of the total revenue. The US was the largest revenue contributor to this region in the same year, capturing a significant portion of the global market. The Americas will continue to dominate the human vaccines market during the forecast period because of the increase in the prevalence of infectious diseases and cancers. In addition, increase in strategic alliances with expected entry of novel vaccines, is also expected to propel the growth of the market in this region
The report also says that there are two types of human vaccines, Therapeutic (cancer, metabolic disorders, chronic illnesses, and infectious diseases) and Preventable human vaccines markets (pediatric vaccinations) that are estimated to reach $55 billion worldwide. The Atlantic magazine published an article in 2015 titled ‘Vaccines Are Profitable, So What?’ Author Bourree Lam says:
While the main fixation of anti-vaccine groups is an old, discredited study linking vaccination to autism, another is a conspiracy theory circulated online that both doctors and pharmaceutical companies stand to profit financially from vaccination—which supposedly leads to perverse incentives in advocating for the public to vaccinate.
But that argument is historically unfounded. Not only do pediatricians and doctors often lose money on vaccine administration, it wasn’t too long ago that the vaccine industry was struggling with slim profit margins and shortages. The Economist wrote that “for decades vaccines were a neglected corner of the drugs business, with old technology, little investment and abysmal profit margins. Many firms sold their vaccine divisions to concentrate on more profitable drugs”