Contract vaccine manufacturing market to reach $0.62bn in 2015, says report

With a drive towards cell based production methods

The world market for vaccines will reach US$48bn in 2015, forecasts a new report by UK-based business information provider Visiongain. From this market, contract manufacturing of vaccines will reach $0.62bn in the next three years.

The report, Vaccine Manufacturing Technology and Services: World Market 2013-2023, forecasts that the vaccine manufacturing market will achieve strong growth over the next decade, driven by increasing demand from expanding populations and advances in technology. Rapid advances in biotechnology, immunology and genetics are a constant driving force behind the development of vaccines.

In the future vaccine development will increasingly concentrate on new classes of vaccine designed using recombinant DNA technology, instead of more traditional live, attenuated and inactivated viruses, the report says. The use of such technology will also allow vaccines to be developed for new diseases.

The vaccine manufacturing market is highly consolidated, with a few leading players dominating the market

Novel therapeutic vaccines, targeting diseases such as cancer, will be a high growth segment for this market to 2023. The emerging markets of India and China will also become important hubs for vaccine production, driven by healthcare demand in those regions.

‘The vaccine manufacturing market is highly consolidated, with a few leading players dominating the market,’ said Dr Peter Williamson, a pharmaceutical industry analyst at Visiongain.

‘Vaccine development and manufacturing is an expensive process, resulting in high entry barriers. However, there will be opportunities to enter this growing market. As pharma and biotech R&D budgets continue to tighten, companies will try to meet healthcare needs through manufacturing processes at lower cost and with improved efficiency. Outsourcing vaccine manufacturing is one solution – having the advantage of flexibility, whereby a company does not have to invest heavily in facilities, equipment and expertise, so it can focus its resources on other areas, such as marketing and R&D. There are many opportunities for contract pharma manufacturing organisations (CMOs).’

As vaccine manufacturing methods become more complex, the time consuming changeover of vaccine production lines will become more frequent

The report says there will be a drive towards cell based production methods, ultimately increasing productivity and efficiency. As vaccine manufacturing methods become more complex, the time consuming changeover of vaccine production lines will become more frequent. Single-use technologies, such as bioreactors, will benefit production methods. In addition, outsourcing of vaccine manufacturing offers a platform whereby companies can reduce costs and improve their vaccine production processes through outside expertise and flexibility. However, while the benefits of outsourcing are clear, there will be strong competition from in-house operations.

Visiongain's report provides revenue forecasts to 2023 at world market, submarket and national level. It forecasts world sales for paediatric vaccines, influenza vaccines, adult prophylactic vaccines, therapeutic vaccines and contract vaccine manufacturing. The investigation also analyses 14 leading companies including GSK, Pfizer, Novartis, Charles River Laboratories, Baxter BioPharma Solutions, Catalent and Lonza.

Countries and regions analysed are the US, Japan, Germany, France, the UK, Spain, Italy (EU5), Brazil, Russia, India and China (BRIC nations).

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