Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Vaccine industry overview

14,093 views

Published on

Vaccine industry overview

  1. 1. VACCINE INDUSTRY : PRESENT AND FUTURE Naveen Kumar
  2. 2. Flow of Presentation  Introduction  Vaccine Industry: An Overview  Growth Drivers  Challenges and Issues  SWOT  Company watch  Future Perspective  Further Developments  conclusion2
  3. 3. 3
  4. 4.  Every year 3 million deaths are prevented and 750,000 children are saved from disability by vaccines(WHO)  Why do we need vaccine?  Common communicable diseases  Geographic variation in disease spread  Every 1$ invested in childhood vaccine save 18$  Increased life expectancy to economic growth4
  5. 5. VACCINES  “A vaccine is any preparation intended to produce immunity to a disease by stimulating the production of antibodies. Vaccines include, for example, suspensions of killed or attenuated microorganisms, or products or derivatives of microorganisms.”- WHO.5
  6. 6. Vaccines vs Pharmaceuticals Vaccines Pharmaceuticals Regulatory Focus on prevention – not patients,  Focus on treatment – patient is but healthy subjects generally sick Key role for the government agencies  Key role for healthcare players  Very low acceptance of side effects  Acceptance of side effects varies by severity of disease Manufacturing  High manufacturing and supply chain  Medium manufacturing and supply complexity chain complexity (Cold Chain Management, complex (Easier to handle chemical synthesis biological processes) in most cases) Marketing/ Sales  Small Massive sales force commitment  Major sales through government Sales through physician as prescriber  Very few generic products Increasing generic threat (Due to manufacturing complexity)6
  7. 7. A Typical Cold Chain7
  8. 8. 8
  9. 9. Problems in supply chain  Tight price competition  Damage to vaccines during transportation - Storage problems  Due to less financial incentive from govt. to manufacturers – insufficient doses  Demand uncertainty  Manufacturing interruptions - required to maintain cGMP standards so high product rejection rate - supply can be impacted9
  10. 10. Vaccine MRP, in `, Price offered Discount in Percentage 2008 (A) to physicians, `(A-B) Margin of in ` (B) profit for the physician (A- B)*100/ BPentaxim 2066 1446 620 42.9Imovax Polio 365 280 85 30.4Tripacel 1211 762 449 58.9Okavax 1468 986 482 48.9Avaxim 80 952 665 287 43.2TetractHib 504 305 199 65.2ActHib 10 426 251 175 69.7
  11. 11. 11
  12. 12. STAGES OF VACCINE DEVELOPMENT Total time of development 12 - 15 years (Total Investment US$ 500mn – 1bn)12
  13. 13.  76 US-FDA approved vaccines  There are now 145 pure vaccines and 11 combination vaccines in clinical development  Five major players–GlaxoSmithKline, Merck, Sanofi-Aventis, Pfizer and Novartis  Vaccines approved by FDA in 2010 : Provenge, Prevnar 13, and Menveo13
  14. 14. Vaccine segments Human vaccines Pediatrics Adolescents Adults Elderly14
  15. 15. Global vaccine sales($ billion) 30 25 20 15 28 26 24 10 18 5 0 2007 2008 2009 201015
  16. 16. Major markets Country Sales, 2008 Market share ($ mn) 2008(%) US 4741 42.7 Germany 1755 15.8 Japan 911 8.2 France 835 7.5 Italy 303 2.7 Spain 198 1.8 UK 176 1.616 Source : Business insights, 2008
  17. 17. Global vaccine leaders(2010) Company Sales($ billion) GSK 6.50 SA 5.14 Pfizer 3.7 Merck 3.5 Novartis 2.9 SP-MSD 1.217 Source : Global Vaccine Market 2010 , Krishan Maggon
  18. 18. Global vaccine leaders Others GSK SP-MSD 21% 23% 4% Novartis 10% SA 17% Merck 12% Pfizer 13%18
  19. 19. Top vaccines Brand name Company Sales($ billion) 2010 Prevnar(13) Pfizer 3.6 Fluarix GSK 1.85 Fluzone SAP 1.75 Gardasil Merck 1.35 IPOL SAP 1.3319 Source : Global Vaccine Market 2010 , Krishan Maggon
  20. 20. Managing the product life cycle Factor New Product Market Product Maturity Launch Penetration Number of One Multiple, High, producers industrialized industrialized and countries developing country Capacity Low High Potential surplus Market Low High, High, all markets industrialized Cost High Medium Low Prices High uniform Tiered and high Tiered and low average average20
  21. 21. Overview of major vaccine related acquisitions Target Company Acquiring Investment Date Company Made Announced Wyeth Pfizer $68 bn Jan 2009 MedImmune AstraZenecea $15.6 bn April 2007 Chiron Novartis $5.1 bn Oct 2005 Crucell Johnson & Johnson $2.6 bn Sep 2009 ID Biomedical GSK $1.4 bn Sep 2005 Shantha Sanofi Aventis $781 mn July 2009 Biotechnics Acambis Sanofi Aventis $549 mn July 2008 Intercell Novartis $363 mn July 2007 Corixa GSK $300 mn May 2005 PowderMed Pfizer $230 mn Oct 2006 Coley Pfizer $214 mn Nov 200721 Source: VacZine Analytics
  22. 22. 2010 2015(F) Sales (millions) $67791 $64532 Research & $9338 $7212 Development Net Income $17983 $17430 EPS $2.23 $3.00 Top product Lipitor ($10773) Prevnar($5624)22 Source: Forbes
  23. 23. 23
  24. 24. The Indian Market for Vaccines  Indian market : US$ 524 million  Vaccine industry will continue to grow at a CAGR in the range of 10-13% over the next 10 years to reach a size of between US$1.4 billion and US$1.8 billion by 2020  India produces about 40-70% of the WHO demand for DPT and BCG, and almost 90% of the demand for measles  The largest vaccine producer in India is the Serum Institute of India, it is the world’s largest24 producer of measles and DPT vaccines
  25. 25. The Indian Market for Vaccines ,0 Animal vaccines, 107 Domestic, 238 Export, 179 Source: Biospectrum (June 2010)25 Figures in US$ mn
  26. 26. Increased vaccine sales in 2009-1026
  27. 27. Major players MNCs Local manufacturers • GSK • Serum institute of • Sanofi Pasteur India • Novartis • Shantha Biotechnics • Wyeth • Bharat Biotech • Merck • Panacea Biotech • Bio-Med27
  28. 28. Company watch : GSK  Market share 28%  10% of total sales  24% growth vs 2009 Vaccine India launch Rotarix 2008 Cervarix 2009 Infanrix Hexa 2009 Synflorix 201028
  29. 29. Vaccines currently under development by Indian companies Vaccine Company Status of development Rotavirus vaccine Bharat Biotech Phase 3 Rotavirus vaccine Shantha Biotechnics Phase 2 Cadi-05 Cadila Phase 3 Malaria vaccine Bharat Biotech Phase 1 H1N1 influenza Bharat Biotech, Phase 2/3 (Swine flu) vaccine Panacea Biotech, SII Conjugated typhoid Bharat Biotech Phase 3 vaccine29 Source : Biospectrum, April 2010
  30. 30. Trends in vaccine industry Major players looking to develop flu vaccines Increase exports Increase focus on adult vaccines Increase in conjugation vaccines Novel methods of vaccine administration Vaccines30 Source: PwC
  31. 31. Vaccine Market Drivers  Breakthroughs with new products to address unmet medical needs  ‰ Contingency planning for pandemic infections  Growing income in the developing world markets  Threat from bioterrorism  Potential for therapeutic vaccines  Continued interest and investment from major pharma players  Education and awareness about disease prevention  Participation by government in terms if improving PSUs and investment31
  32. 32. Challenges for the Indian vaccine market  Failing realization for mass vaccination(Hepatitis B)  Funding  High maintenance  Slow regulatory approval  Dependence on government32
  33. 33. 33
  34. 34. Strengths  Prevent disease  Vaccines are widely available and programs have reduced cost as a barrier to vaccination  Vaccines Will Not Face Significant Generic Competition34
  35. 35. Weaknesses  Vaccine Research and Development is Lengthy and Expensive  Less awareness  Vaccine Manufacturing : High cost  High maintenance products  Regulatory approvals  Funding to new enterprises35
  36. 36. Opportunities  Vaccines for Diseases Currently Without a Vaccine  Improved Vaccines for Partially Vaccine- Preventable Diseases  Global recognition of the benefits of immunization  Combination vaccines – way ahead36
  37. 37. Threats  Only strong players so intense competition  Domestic Indian companies depend on government procurement to push volumes  Gestation period is long  Ageing of their product basket  Vaccine Distribution Networks  The Anti-Vaccine Movement37
  38. 38. 38
  39. 39. 39
  40. 40. Future vaccines Vaccine Estimated annual burden of At risk population disease Dengue 10,000-20,000 deaths 2.5 billion people are at 500,000 severe cases risk, with a strong trend upwards Malaria 1.1 to 2.7 million deaths, 2 billion people in endemic 300-500 million cases regions children under 5 Tuberculosis 1.6 million deaths; 8 million Endemic regions including cases Africa, Asia and S. America. Individuals infected with Multidrug resistant TB HIV/AIDS Almost 3 million deaths; 38- High risk groups Continent 42 million cases of Africa40
  41. 41. And more…  Diabetes  Cancer  Smoking  Obesity  Asthma  Allergy  HTN41
  42. 42. 42
  43. 43. Adjuvants Conjugate vaccines • Conjugation of sugar molecules• Substances that helps vaccine to present on bacteria to a strong produce a stronger immune immunogenic carrier protein response • Can stimulate cell mediated long• Faster response lasting memory• Broad immunity To increase and prolong the immune response to the vaccine antigen Adjuvant and conjugate vaccines may help to increase vaccine efficacy in the elderly population43
  44. 44. DNA vaccine Advantages Technique Ease of manipulation • Injection of DNA encoding the antigen Simple manufacturin • Involves transfection of g DNA plasmid containing antigen coded gene into More stable target cells which results in immune Targetting a response specific organ44
  45. 45. Conclusion  Vaccine industry has been proved to be one of the fastest growing sectors of the past decade and is forecasted to do so in future also  Driven by novel, high-price vaccines, the 7MM’s paediatric and adolescent vaccines market will almost quadruple in size by 2016  Due to ageing populations, the emergence of new technologies and the increasing awareness for vaccine-preventable diseases, adults and the elderly are coming into focus as an attractive target population for future vaccine development  Advancement in the molecular biology and vaccine delivery systems will be the key for further development of this industry45
  46. 46. 46

×