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Vaccine supply, demand, and policy: a primer
Jagannath M Muzumdar1, Richard R Cline
1Social and Administrative Pharmacy, College of Pharmacy, University of Minnesota, Minneapolis 55455, USA.. muzum002@umn.edu
Journal of the American Pharmacists Association : Japha
|July 11, 2009
Summary
High costs and manufacturing challenges impact vaccine supply and demand. Policy innovations like advance market commitments aim to stabilize the vaccine industry and improve immunization rates.
Area of Science:
- Pharmaceutical industry analysis
- Public health policy
- Vaccine economics
Background:
- Vaccine development and production are complex and costly, exceeding "small-molecule" drug development.
- High research, development, and manufacturing costs, along with strict regulations, create barriers to entry in the vaccine industry.
Purpose of the Study:
- To review supply and demand dynamics within the vaccine sector.
- To analyze policy interventions designed to address vaccine industry challenges.
Main Methods:
- Systematic literature search of Medline, Policy File, and International Pharmaceutical Abstracts.
- Inclusion of academic articles, historical texts, government reports, and think tank publications.
- Focus on English-language human studies related to vaccine supply, demand, and policy.
Main Results:
- High R&D costs (over $800 million) and lengthy development timelines (10+ years) characterize vaccine production.
- Policy options to boost supply include subsidies, liability protection, and expedited approval.
- Strategies to enhance demand involve advance purchase commitments, government stockpiling, and targeted financing.
Conclusions:
- Declining manufacturer numbers are linked to high development costs and market entry barriers.
- Existing vaccine policies show mixed success; challenges persist in developing vaccines for complex pathogens and increasing immunization coverage.
- Emerging policies, such as advance market commitments and Medicare Part D, offer potential solutions for industry issues.
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