Vaccines a $25.5 billion business in 2014; report

Vaccines are a big business, and a growing business, says health care market researcher Kalorama Information, but noting that the industry has unique circumstances and challenges.

The health care market researcher estimated the market for revenues earned by manufacturers of vaccines was $25.5 billion in 2014 with influenza and pneumococcal among the largest categories in terms of revenue. Kalorama has estimated markets for vaccine products for decades, and says the market is relatively small compared to the overall pharmaceutical market, and production costs and discounts are challenges in the industry.

"It is a lower profit business than traditional pharmaceuticals unless we are talking about novel vaccines or delivery forms," said Bruce Carlson, publisher of Kalorama Information. "On the other hand, the companies that are now in the vaccines marketplace have been in the market a long time. It can be more dependable revenue with a small customer base and normally less sales expense," he added.