Pneumococcal Vaccines Market Insights
Pneumococcal vaccine is used to prevent infection caused by streptococcus pneumoniae bacteria. There are two types of pneumococcal vaccines: pneumococcal conjugate vaccine and pneumococcal polysaccharide vaccine.
The Centers for Disease Control and Prevention (CDC) recommends pneumococcal conjugate vaccine for all children younger than two years of age, all adults 65 years or older, and for people 2-64 years old with certain medical conditions. The CDC recommends pneumococcal polysaccharide vaccine for all adults 65 years or older, people 2-64 years old with certain medical conditions, and adults 19-64 years old who smoke cigarettes.
The global pneumococcal vaccines market size is estimated to be valued at US$ 7,376.6 million in 2018, and is expected to witness a CAGR of 7.5% over the forecast period (2018 – 2026).
Figure 1. Global Pneumococcal Vaccines Market Value (US$ Mn) and Absolute $ Opportunity Analysis and Forecast
Source: Coherent Market Insights Analysis (2018)
Increasing partnership of manufacturers with various governments is expected to drive growth of the pneumococcal vaccines market
High mortality due to pneumonia among the global population is expected to increase adoption of pneumococcal vaccines over the forecast period. For instance, according to the World Health Organization (WHO) November 2016, pneumonia accounted for 16% of all deaths of children under 5 years old in 2015, with 920,136 deaths, globally.
Furthermore, increasing partnership among Global Alliance for Vaccines and Immunization (GAVI) and key vendors to deliver pneumococcal vaccines in emerging countries is expected to be a significant growth factor for the market. For instance, in March 2016, GSK (Glaxo Smith Kline) announced the introduction of pneumococcal vaccine at the lowest price - US$ 3.05 from 2017, a reduction of 10% from the 2016 price (US$ 3.40). Such tiered pricing approach enables emerging economies to meet demand for vaccines for large proportions of the target population. This price is set to be available through the pilot Advance Market Commitment (AMC) to all GAVI countries. Moreover, the vaccine will be sold at the same price for 10 years after transition.
Pneumococcal Vaccines Market- Regional Analysis
Regional segmentation of the global pneumococcal vaccines market by Coherent Market Insights comprises North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.
North America is expected to hold dominant position in the pneumococcal vaccines market. This is majorly due to presence of key players in the region, which are focused on gaining regulatory approvals for novel pneumococcal vaccines. Moreover, increasing mortality rate associated with pneumonia, growing awareness regarding pneumonia infection, and its underlying symptoms among the U.S. population are expected to contribute to significant market growth in the region during the forecast period. For instance, according to the American Lung Association: 2015, around 56,832 deaths were registered due to pneumonia and influenza in 2013, which combined were the eighth leading cause of death in the U.S.
Growing healthcare infrastructure in emerging economies such as India and China and increasing initiatives by government bodies to include pneumococcal vaccine in their respective healthcare immunization programs contribute to wider adoption of pneumococcal vaccines in Asia Pacific. For instance, in November 2016, China Food and Drug Administration (CFDA) approved Pfizer, Inc.’s pneumococcal vaccine Prevenar 13, which is indicated to help prevent pneumococcal disease in infants aged between 6 weeks to 15 months.
Moreover, in 2017, the Government of India, in collaboration with GAVI, launched Pneumococcal Conjugate Vaccine (PCV) vaccines in three states of the country at low cost. Furthermore, under this partnership, 60% of all GAVI-procured vaccines will be manufactured in India.
These activities coupled with increasing approval of vaccines are expected to support growth of Asia Pacific pneumococcal vaccines market over the forecast period.
Figure 2: Global Pneumococcal Vaccines Market Value (US$ Mn), By Region
Source: Coherent Market Insights Analysis (2018)
Pneumococcal Vaccines Market- Competitive Landscape
Various manufacturers are focused on new projects that target diseases with no existing vaccine for various age groups. For instance, in April 2018, Merck, which is also known as MSD outside of the U.S. and Canada, started two Phase 3 studies for PCV-15 (V114), an investigational polyvalent conjugate vaccine against pneumococcal disease.
Key players operating in the pneumococcal vaccines market include, Pfizer, Inc., Merck & Co. Inc., and GlaxoSmithKline plc.
Pneumococcal disease is a common and often mild infection that includes conditions such as middle ear infection, a blood infection, pneumonia, and bacterial meningitis. However, the disease can sometimes result in severe and fatal health problems. Pneumococcal vaccines offer protection against streptococcus pneumonia, which is a causative agent. The vaccine is available in two types as conjugate vaccine and polysaccharide vaccine. Pneumococcal vaccines are administered through intramuscular route. Conjugate vaccines are administered to infants, while polysaccharide vaccines are effective in healthy adults.
Pharmaceutical companies are reluctant to invest in production of new vaccines, owing to very less returns. Therefore, vendors are focused on joining Advance Market Commitment (AMC), an innovative financing program. Under AMC, international agencies pay a premium above the incremental production cost for initial doses sold to emerging economies in exchange of continuous supply of vaccines from vendors at sustainable prices for long term.
In 2010, Pfizer entered into the AMC program and agreed to supply 300 Mn doses of PCV13 for pneumococcal disease. Subsequently, Pfizer entered into two additional agreements with the AMC expanding its commitment with an additional 440 Mn doses, for a total commitment of 740 Mn doses of PCV13 vaccine until 2025.
Moreover, in 2015, Pfizer reduced prices of four new dose vial presentations of PCV13, which was expected to be introduced under the AMC program in 2016. The prices were reduced by 20% per-dose i.e., from US$ 3.30 per dose to US$ 3.10 per dose.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.