User:Jebrice/Economics of vaccines
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Market incentives[edit]
[edit]
There is also no business incentive for pharmaceutical companies to test vaccines that are only of use to poor people.[1]Vaccines developed for rich countries may also have short expiry dates, and requirements that they be refrigerated until they are injected and given in multiple shots, all of which may be very difficult in remote areas. In some cases it has simply never been tested whether the vaccine will still be effective if the requirements are not followed (say, if it retains potency for several days unrefrigerated).[2]
In almost all cases, pharmaceuticals including vaccines are developed with public funding, but profits and control of price and availability are legally accorded to private companies.[3] The profits of large pharmaceutical companies are mostly used on dividends and share buybacks, which inflate executive pay,[4][5] and on lobbying and advertising.[6][5][7]Innovation is generally bought along with the small companies that developed it, rather than produced in-house;[4][5][7]low percentage R&D spending is sometimes touted as an attraction to investors.[8] The financialization focus of the pharmaceutical industry, especially in the US, has been cited as an obstacle to innovation.[5] There have been ethical issues raised with accepting donations of generally unaffordable vaccines.[9]
Demand[edit]
[edit]While the vaccine market makes up only 2-3% of the pharmaceutical market worldwide, it is growing at 10-15% per year, much faster than other pharmaceuticals (as of 2010[update]).[10]
Vaccine demand is increasing with new target population in emerging markets (partly due to international vaccine funders;[11] in 2012, UNICEF bought half of the world's vaccine doses[10]). Vaccines are becoming the financial driver of the pharmaceutical industry, and new business models may be emerging. Vaccines are newly being marketed like pharmaceuticals.[10] Vaccines offer new opportunities for funding from public-private partnerships (such as CEPI[12][13] and GAVI[14]), governments, and philanthropic donors and foundations (such as GAVI and CEPI's donors[12][14]). Pharmaceutical companies have representation on the boards of public-private global health funding bodies including GAVI[15] and CEPI.[16][example needed] Private donors often find it easier to exert influence through public-private partnerships like GAVI than through the traditional public sector and multilateral government institutions like the WHO; PPPs also appeal to public donors.[14] Philanthropic funding means that vaccines are now rolled out to large developing markets less than 10 or 20 years after they are developed,[15][17] during the patent validity term of the patent owner.[citation needed] Newer vaccines are much more expensive than older ones.[18] Lower-income countries are increasingly a profitable vaccine market.[2]
References[edit]
[edit]- ^ Belluz, Julia (4 March 2020). "A guide to the vaccines and drugs that could fight coronavirus". Vox.
- ^ a b "The Right Shot: Bringing down barriers to affordable and adapted vaccines - 2nd Ed., 2015". Médecins Sans Frontières Access Campaign. Cite error: The named reference "right_shot" was defined multiple times with different content (see the help page).
- ^ Mazzucato, Mariana; Momenghalibaf, Azzi (18 March 2020). "Drug Companies Will Make a Killing From Coronavirus". The New York Times.
- ^ a b Lazonick, William; Tulum, Öner (26 February 2019). "How High Drug Prices Inflate C.E.O.s' Pay". The New York Times.
- ^ a b c d Tulum, Öner; Lazonick, William (February 2019). "FINANCIALIZED CORPORATIONS IN A NATIONAL INNOVATION SYSTEM: THE US PHARMACEUTICAL INDUSTRY" (PDF). International Journal of Political Economy.
- ^ Lerner, Sharon (13 March 2020). "Big Pharma Prepares to Profit From the Coronavirus". The Intercept.
- ^ a b "Analysis: Large pharma companies do little new drug innovation". STAT. 10 December 2019.
- ^ Vara, Vauhini. "Billions and Billions for Botox". The New Yorker.
- ^ Hamblin, James (14 October 2016). "Doctors Refused a Million Free Vaccines–to Make a Statement About the Pharmaceutical Industry". The Atlantic.
- ^ a b c Kaddar, Miloud. "Global Vaccine Market Features and Trends" (PDF). World Health Organization.
- ^ "The Right Shot: Bringing down barriers to affordable and adapted vaccines - 2nd Ed., 2015". Médecins Sans Frontières Access Campaign.
- ^ a b Gerald Posner (2 March 2020). "Big Pharma May Pose an Obstacle to Vaccine Development". New York Times. Retrieved 8 March 2020.
Drug companies on CEPI's scientific advisory panel, including Johnson & Johnson, Pfizer, and Japan's Takeda, pushed back. CEPI mostly capitulated in a December 2018 two-page declaration in which it jettisoned specifics but gave lip service to its founding mission of "equitable access to these vaccines for affected populations during outbreaks."
- ^ "Norway has invested 200 million euros in epidemic preparedness, but are they getting what they're paying for?". Médecins Sans Frontières Access Campaign.
- ^ a b c Storeng, Katerini T. (14 September 2014). "The GAVI Alliance and the 'Gates approach' to health system strengthening". Global Public Health. 9 (8): 865–879. doi:10.1080/17441692.2014.940362. ISSN 1744-1692. PMC 4166931. PMID 25156323. Cite error: The named reference "ethnograph" was defined multiple times with different content (see the help page).
- ^ a b "Pneumococcal Vaccine is Launched in Africa, But Are Donors Getting a Fair Deal from Companies?". Doctors Without Borders - USA.
- ^ Røttingen, John-Arne (21 July 2017). "Coalition for Epidemic Preparedness Innovations (CEPI): Presentation to the WHO" (PDF). CEPI.
- ^ MSF. "Pfizer and GSK should not get huge subsidy for pneumonia vaccine". Médecins Sans Frontières (MSF) International.
- ^ "Vaccination". Doctors Without Borders - USA.