Novel Products to Inject Momentum into European Vaccines Market
The European vaccines market is currently in a growth phase. While it faces significant challenges in terms of low profit margins, complex manufacturing and fragmented competition, the market is still forecast to average a healthy compound annual growth rate of 10.8 per cent from 2005 to 2012. The development of novel vaccine products, unmet medical need both in adult and adolescent vaccine segments and government initiatives will support revenue expansion.
Frost & Sullivan finds that from $3.20 billion in 2005, the European Vaccines Market is expected to expand to $6.58 billion in 2012. The major catalyst to market expansion will be the launch of novel vaccines. Technological advancements such as DNA vaccines and new delivery methods will also present significant growth potential.
Worldwide, over 400 vaccines are currently undergoing clinical trials. Some of the major vaccines anticipated to be introduced in the next five years include those for MMR + Varicella, Herpes Zoster, Rotavirus, Human Papilomavirus vaccines (HPV) and Meningococcal infections. In particular, novel vaccines for HPV (Merck and GlaxoSmithKline), Rotavirus and pneumococcal diseases will drive market expansion.
Over the next ten years, several other novel vaccines are expected to be developed for Hepatitis C, HIV, tuberculosis, respiratory syncitial virus (RSV), helicobacter pylori, cytomegalovirus, Epstein-barr virus, Meningococcal Meningitis B and West Nile virus.
At present, Europe accounts for almost one-third of the global vaccines market with the region having a strong manufacturing base. However, due to better profit margins and consistent demand, the major market for vaccines remains the North American region.
Indeed, European vaccine manufacturers confront high and ever-increasing developmental costs, low pricing levels and reduced profit margins. The projected launch of several novel vaccines, which command higher prices, overall increased prices for vaccines and rising awareness are poised to offset such trends and significantly drive market growth.
Focusing on novel vaccine products (with proven safety and efficacy profile) with new indications is likely to enable companies to negotiate for better margins, notes Frost & Sullivan Industry Analyst Himanshu Parmar. The price of therapeutic vaccines is likely to be higher compared to traditional vaccine products, therefore representing considerable market potential.
Characterised by high fragmentation, the market has over 50 active participants. Of this, however, four companies GlaxoSmithKline and Sanofi-Pasteur MSD, Chiron and Wyeth account for over 80 per cent of the market.
Strong future growth will hinge on achieving product differentiation through advanced, high quality, cost-effective development and production, explains Mr. Parmar. New enabling technologies such as vaccines delivery, new technologies such as DNA vaccines and innovative combination vaccines together with efforts towards line extensions and the search for new indications will also be critical to success. R&D collaborations will enhance product, service and technology portfolios while acquisitions and in-licensing of innovative products will consolidate competitive gains.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European Vaccines Market (B703-52) then send an e-mail to Radhika Menon Theodore using the 'Contact' button below.
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