Report on the United States Vaccine Industry

Vaccine Volume Trends

A second conclusion is that pricing has not driven the growth in the industry over the last five
years. In fact, while total U.S. vaccine doses distributed were essentially flat between 1982 and
1988, they have grown rapidly in recent years. This growth is almost entirely the result of new
products and increased number of doses on the childhood vaccine schedule. Exhibit 18
illustrates the growth in vaccine doses distributed over the period from 1982 to 1993. Of the
overall increase of about 31 million doses, the second dose recommendation for MMR has
contributed 9 million doses; Hib, 13 million; Hep B, 7 million; and DTaP, 4 million. OPV and
DTP volumes have actually fallen over this period.
Exhibit 18
U.S. Pediatric Vaccines Volume Trends
- Total Doses Distributed -
CAGR* '82-'93
(%) A Doses
'82-'93 MM
75 Total 5% 31.3
60
Doses 45
Distributed
(MM)
30
OPV (1%) (1.6).- -.DTP (1%) (1.6)
15 A - MMR 11% 9.1.....HHib Conj. 38% 12.8
0 " - ""'"-=---,,,,,, y- Ba - 6.7
0 * xDTaP 155% 3.8
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 DTP-Hib - 3.2
*Compound annual growth rate Hib MMR DaP
Introduction 1 ->2 Introduction
Hib
1 ->4
Vaccine industry revenue growth during the last five years has also been driven primarily by
new products and additions to the schedule. Exhibit 19 shows the revenues of major product
segments for the years 1989 and 1993, and the contributions to the growth of major suppliers.
Approximately 72 percent of the revenue growth during this period was generated by new
vaccines, and another 10 percent came from second dose MMR. The market for OPV and
DTP, however, actually fell $25 million, reflecting both heavy discounting and substitution of
DTP.
"Other"/international contributed approximately 20 percent of industry growth over the period,
as a result of both competitors' MMR product problems overseas and the introduction of new
products that enable U.S. suppliers to circumvent entrenched local European competitors. For
example, DTP-Hib has been a major export for Lederle-Praxis, which, according to their
annual report, now ships to 42 countries worldwide.
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