A cost analysis of producing vaccines in developing countries.

Area of Science:

• Pharmaceutical Sciences
• Health Economics
• Global Health

Background:

• Developing country vaccine manufacturers (DCVMs) are crucial suppliers for global immunization programs.
• Economic viability assessments for establishing local vaccine manufacturing are often lacking.

Purpose of the Study:

• To quantify the costs associated with establishing vaccine manufacturing facilities in developing countries.
• To estimate the production costs per vaccine dose within these facilities.

Main Methods:

• Analysis of capital and operating costs for vaccine manufacturing facilities across three production scales.
• Estimation of production costs for twelve different vaccines from eight DCVMs.
• Comparison of estimated production costs with market prices in developing and industrialized countries.

Main Results:

• Average vaccine production cost in developing countries estimated at $2.18 per dose (range $0.98-$4.85).
• Production costs decrease with increased scale and scope, driven by fixed costs at lower volumes and variable costs above 20 million doses annually.
• Estimated costs were 47% lower than developing country market prices and 84% lower than industrialized country prices.

Conclusions:

• Local vaccine production in developing countries demonstrates economies of scale and scope.
• Lower production costs relative to market prices suggest potential for producer surplus and sustainable manufacturing.
• Findings support the economic feasibility of expanding vaccine manufacturing capacity in developing nations.