The global pediatric vaccines industry was valued at $14 billion in 2010 and is expected to reach $24.3 billion in 2017 at a Compound Annual Growth Rate (CAGR) of 11.5% from 2007 to 2017. The vaccines market, which was once considered a low-profit segment of the top players' portfolios, now has ability to generate high revenues and profits despite being priced at a premium. The vaccine market has captured the attention of Big Pharma who has been watching the development of this market with interest following the success story of Prevnar, the first blockbuster vaccine.
Weak pipelines and patent expiries put the pharmaceutical companies under huge pressure to the operations due to redundancies and closures of manufacturing and Research and Development (R&D) operations. The pediatric vaccine industry on the other hand, promised safe revenues due to the lack of threat from generics, which prompted the Big Pharma players like Pfizer and AstraZeneca to invest in this industry, resulting in an increase in revenues and growth rates. Public Private Partnerships Play an Important Role in the Development and Financing of Immunization Programs
Several partnerships and financing mechanisms have been introduced to provide funding to the countries with the intention of set immunization goals. The Global Alliance for Vaccines and Immunization Alliance (GAVI) is a public-private global health partnership that provides support to countries with a Gross National Income (GNI) per capita below $1,000, to strengthen their health systems and immunization programs, increase routine immunization coverage, and introduce new and underused vaccines. At the end of 2008, GAVI had received a total of $3.8 billion in cash and pledges from public and private sector donors, and disbursed $2.7 billion to eligible countries. Over the period up to 2015, GAVI will have an estimated $3 billion funding shortfall out of the estimated $8.1 billion total funding needed.
Several public-private partnerships have also been established to develop new vaccines for diseases and they are expected to drive the development of novel vaccines and new technologies.Strategic Focus on Partnering as Licensing and Co-Development Accounted for 69% of Deal-Making Activity from 2004 to 2011
GBI Research analyzes that the global pediatric vaccine industry focuses on partnering. It is difficult for the smaller companies to succeed since they do not have the financial muscle to compete against the top vaccine players, who require their technologies to generate revenues benefiting the small companies through revenue generating agreements and royalties. Also, a number of public-private partnerships help the vaccines industry to develop interventions for new diseases.
Small vaccine companies with promising candidates in the pipeline out-license their molecules to the top players, who in turn can provide sales, marketing and regulatory support, as it is difficult for them to succeed otherwise due to high development, marketing, manufacturing and licensing costs. However, the vaccines industry remains attractive for large and small companies due to its potential to generate revenues from smaller disease populations. Hence, the vaccines industry is expected to remain highly active in the future, fueled by the encouragement and financing from governments and other health organizations.Report Scope
- Data and analysis on the global pediatric vaccines market
- Annualized market data for the vaccines market from 2007 to 2017
- Key drivers and restraints that have had a significant impact on the market
- The competitive landscape of the global vaccines market
- Key M&A activities, licensing agreements and co-development deals that took place in the pediatric vaccines market
Click for Report details:Pediatric Vaccines Market to 2017- Strategic Focus on Partnering as Licensing and Co-Development Accounted for 69% of Deal-Making Activity from 2004-2011