With diseases running rampant throughout the world, wealthy citizens of industrialized countries run to the doctors to vaccinate their children. But how do the profits for the industry add up?
According to the World Health Organization the sales from vaccines are comprised of 82% from industrialized nations with the rest coming from developing nations. The odd statistic is: out of the total amount of vaccines given out in the world 85% are given to developing nations. What does this mean? This means that even though 1st world countries take 15% of total vaccines, they pay for 82% of them. How is this possible? WHO attributes developing countries obtaining vaccines to donations from government organizations, foundations, and independent donors.
Annually the vaccination market grows 10-15% which is considered aggressive growth. This statistic compared to the 7% growth rate for pharmaceuticals, begs the question: population growth annually is 2% so why is vaccine growth so explosive? In 2000, the vaccine industry raised $5 billion in the US, in 2013 it was $24 billion. WHO answers the question simply blaming this on “newer, more advanced, and more expensive vaccines coming out faster than before.
What is the highest selling vaccine? Pfizer’s pneumonia vaccination is responsible for 2.4 of the 24 billion dollars in sales last year. But #3 is Merck’s HPV vaccination, which until recently had barley any market share. The HPV vaccination is an example of one of the advanced medicines that are causing the rapid growth in this industry.
Projection: As population-technology-threats all increase, we will see the vaccination industry continue to boom. Also, while developing countries develop, they will begin paying for the vaccines which will dramatically increase profits for the pharm giants. The pharm industry seems to be a relatively safe-solid investment.