by Kaleem Ahmed, Biotechnology Expert
The focus and hype surrounding vaccines have never been as significant as they are right now. The global vaccine market is set to reach around $58.4 billion by 2024 from $41.7 billion in 2019, at a CAGR of 7.0%. Looking at the current projections from the leading manufacturers it is expected that 9.5 billion doses will be manufactured by the end of 2021. Similarly, demand is set to exceed the supply until the end of 2021 or even into 2022. Several factors that are determining the ability therapeutics companies will have to capitalize on this demand include:
VACCINE MARKET GROWTH
The growth of the vaccine market can be primarily attributed to the increased prevalence of infectious diseases and the current pandemic. This has led to more company projects and initiatives to enhance vaccine R&D, stronger government backing for vaccine development, and the ever-rising focus and needs for immunization. Nevertheless, the big capital investments needed for developing vaccines have the potential to impact market growth.
CONTINUING INVESTMENT
Since the onset of the COVID-19 pandemic, global pharmaceutical firms have made big leaps towards the development of drugs, therapeutics, and vaccines in particular. Great investments have been made across the globe to try and bring a halt to the suffering of our population. As we move along in this pandemic, we need to dive further into where we can strengthen alliances and expand partnerships to discover new treatment options.
ALLIANCES AND PARTNERSHIPS
Research and development in vaccines have been a shining light during the dark days of this pandemic. Companies like Pfizer and BioNTech who co-developed an mRNA vaccine as well as Moderna, have been the torch-bearers in this struggle and have shown great promise with claims of around 94-95% efficacy in large clinical trials.
RECORD-BREAKING SPEED
This heroic global campaign for a COVID-19 vaccine has broken all the records for speed of vaccine development: the previous record was Merck’s Mumps vaccine, which took four and a half years to develop. The fact that this vaccine was brought to market faster than ever will lead to accelerations in the future development of vaccines, this is how things will continue to grow and we will have a model to market things faster.
LONG TERM DATA ON NEW VACCINES
While vaccine manufacturers share their results and safety data with regulators, it will be a year or two after the launch that we will come to know if the COVID-19 vaccines have any side effects. It is this post-marketing phase of the drug cycle that can define the long-term safety of the drug, particularly where the approval was given on a fast-track basis. The side effects and dosing regimens of vaccines from various companies may define the scale of their success and the impact on the market, especially depending on whether or not patients prefer a one-dose shot over a two-dose.
There are many indications that the vaccine market will keep experiencing tremendous growth. On top of the market worth being estimated to worth $58.4 billion by 2024, The global vaccine delivery devices market is expected to reach $6.5 billion by 2027. Many countries around the world are keeping up with immunization efforts to combat surges in disease outbreaks with the help of organizations like UNICEF and Gavi. Changing the mindset of people who are on the fence about vaccines will also be extremely critical as some are still reluctant to get themselves inoculated. With the help of Non-governmental organizations, community services, and pharmaceutical companies, running massive awareness campaigns that highlight the importance of receiving these vaccines while combatting the propaganda of the anti-vaccine movements will only help to serve the market growth in the long run.
Please note: This article contains the sole views and opinions of Kaleem Ahmed and does not reflect the views or opinions of Guidepoint Global, LLC (“Guidepoint”). Guidepoint is not a registered investment adviser and cannot transact business as an investment adviser or give investment advice. The information provided in this article is not intended to constitute investment advice, nor is it intended as an offer or solicitation of an offer or a recommendation to buy, hold or sell any security. Any use of this article without the express written consent of Guidepoint and Kaleem Ahmed is prohibited.