Report on the United States Vaccine Industry

Study Charter
Mercer Management Consulting was contracted in September 1994 to conduct a study of the
United States vaccine industry for the Department of Health and Human Services (DHHS).
The purpose of this study was to develop an understanding of the economics of the U.S.
vaccine industry that will enable the U.S. Government to establish vaccine procurement
mechanisms and fair payment prices in order to adequately sustain private sector research and
development on new and improved vaccines.
In January 1995 the scope of the study was modified by DHHS to focus Mercer's efforts on the
economics of vaccine production, distribution and sales and marketing. The modified scope
excluded further analysis of the Vaccines for Children legislation's effects on the suppliers'
revenues and costs and the suppliers' investments in research and development. The modified
scope also excluded the creation of policy options for managing the Federal purchases of
vaccines.

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