Novel vaccines improve potential for European makers

The vaccines market, which was earlier associated with low profit margins and slow growth rates, has gained momentum in recent years  through innovation. The arrival of novel vaccines for diseases with a  high burden and continuous investments aimed at boosting production  capacity is driving growth in this previously unattractive market. A new  analysis from Frost & Sullivan, European Vaccines Market, finds the  sector had sales of $4.50 billion in 2007 and projects this to reach  $9.85 billion in 2014.

Governments' acceptance and reimbursement of these efficient, albeit  expensive, vaccines has encouraged market participants to increase  investments in R&D and develop innovative and differentiated products.  Innovation in technology has enabled manufacturers to move ahead into  promising areas like therapeutic vaccines where the potential for growth  is unlimited. However, Europe is already at a disadvantage because of  the ban on direct-to-consumer marketing. Uptake levels in Europe remain  slower than in the USA market. In addition to the inherent challenges in  vaccine manufacture and R&D, market participants also have to deal with  government policies, perceptions and awareness levels that diverge  widely across Europe, the F&S report notes.