A vaccine is a suspension of weakened, killed, or fragmented microorganisms or toxins or of antibodies or lymphocytes that is administered to stimulate the body's immune response against the specific infectious agent or disease. Intramuscular is the most common mode of administration for vaccines. Majorly vaccines can be categorized into the following types based on their characteristics:
Subunit, recombinant, conjugate, and polysaccharide vaccines
Viral vector vaccines
The global vaccine market was valued at USD 42 billion in 2020 and it is expected to grow at a CAGR of 7-8% from 2020 to 2027 due to the high prevalence of infectious diseases, increasing company initiatives to enhance vaccine R&D, growing government investments for vaccine development, and the rising focus on immunization. According to WHO immunization awareness and government initiatives have helped prevent 2-3 million deaths annually before Covid-19. The recombinant/conjugate vaccine segment is the largest market share of ~55% followed by inactivated and live attenuated vaccines. North America generated more than 35% of revenue of the global vaccine market owing to strong awareness, secure government policies regarding health welfare.
Vaccine manufacturing costs can be divided into two segments. Fixed costs and variable costs. Fixed costs include product development, facilities, and equipment costs. Variable costs include consumables, direct labor, licensing/regularization, commercialization, and overhead costs. Vaccine production costs have a significant fixed cost component, reaching up to 90% of total costs. Production costs per unit can be reduced significantly through gains in productivity and economies of scale. Because of the high fixed cost element, the cost of production per dose decreases with increasing batch size. For bulk production, equipment cost is the major cost component with more than 40% share in the overall cost of production. Whereas for lab-scale production the product development and raw material costs plays important role in determining the overall cost of production.
The Covid-19 pandemic has significantly lowered the adoption of vaccines. The pandemic has decreased the rate of regular immunization programs conducted by organizations like UNICEF, WHO, PAHO. This suspension of immunization campaigns reduces the vaccination rate and increases the mortality rates. The vaccination rate is relatively slower in low and middle-income countries due to the high cost associated with the dose of vaccine. Moreover, the challenges associated with scaling up the vaccine production due to supply chain disruption of raw materials and other lab equipment is a major area of concern in the global vaccine industry.
GlaxoSmithKline plc, Pfizer, Sanofi Pasteur, Merck & Co., CSL Limited, Emergent BioSolutions, Inc., Johnson & Johnson, AstraZeneca, Serum Institute of India Pvt. Ltd., Bavarian Nordic, Mitsubishi Tanabe Pharma Corporation, Daiichi Sankyo Company, PanaceaBiotec, Bharat Biotech, Sinovac Biotech Ltd are the leading vaccine manufacturers. The global vaccine industry features a moderately consolidated landscape with the leading players contributing around 55% of the market share. Industry leaders are strengthening their presence through multiple mergers and acquisitions. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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