Report on the United States Vaccine Industry

Exhibit 13
U.S. Major Vaccine Pricing
- Ratio of Contract to Catalog Price -

100%1
90%
80%
70%
Contract 60%
Catalo so50%
40%
30%
20%
10%
0%

1993 Prics
ontract Ratio
'""*"HepB $6.85 $10.71 64%
*... -.......MMR $10.89 $20.85 52%

$5.37
$1.33
$1.87

$15.13
$5.38
$10.14

35%
23%
18%

t I
NVICP NVICP
Act Excise Tax
Passed Implmented

Combining the trends in public purchases and pricing, we can calculate a "blended price" - the
weighted average public and private price of a vaccine over time, weighted by the volume of
doses distributed in the public and private markets. As shown in Exhibit 14, the growth in
prices tend to be lower than in the private or public markets individually as shifting private
market purchases to the public market at significant discounts lowers the average price of a
product. This effect is especially evident with DTP and OPV, which both have large discounts
and have faced increasing public purchases as a percentage of total doses. On this basis, in
fact, even OPV price growth has matched inflation in recent years.
Exhibit 14
U.S. Major Vaccine Pricing (Blended)
- Weighted Average of Public and Private Prices -

$16
$16
$14
$12
S/Dose. $10l
$8
$6
$4
$2
$0

~-.,.,-. MMR
**.... HIB
I p B

Compound Annual
Growth Rate (%)
8% 1%

7

WA
N/A

(6%)
WA...

pw
- - OPV

11% 4%. DTP 24% (11%)

1982 193 1964 190

5 156 15 198E 155
Ad Excias Tax
Passed knplemented

M C 1I e 1%1 154. 115
CPI 3.8% 4.1%

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