Unfortunately, however, the South African public sector has limited access to this technology due to its slow adoption rate of new technology and cost constraints.
Manufacturers are therefore challenged to lower their manufacturing costs and shift their revenue models to high-volume, low-margin products to suit the needs of the public sector and vaccinate the South African population against the necessary range of diseases.
New analysis from Frost & Sullivan, Strategic Analysis of the South African Paediatric Vaccines Markets, finds that this market earned revenues of $33.18 million in 2006 and estimates this to double by 2012. This is due to the expected launches of new vaccines between now and 2012 and the anticipated adoption of new combination and unique extended immunisation programme (EPI) vaccines.
"The current trend in the paediatric vaccine market is to combine existing vaccines," notes Frost & Sullivan Research Analyst Lizelle Wentzel. "These combination vaccines have caused a substantial expansion in market revenues, and growth in the South African private sector has increased significantly."
Patients in the private sector pay a high premium for the luxury of immunising their children against a broad range of diseases in one go.
Combination vaccines allow a higher coverage rate due to the lower number of injections needed per immunisation. Parents don't have to queue several times at clinics to ensure their child's proper vaccination, since some of these combined vaccines can contain as many as seven different antigens. Combination vaccines also contain less antigen, but induce the appropriate immune response needed for full protection.
In South Africa, the biggest challenge is to serve the public market through the government's EPI. Although revenues are high, volumes are low in the private sector. In the public sector, this model is reversed. Government's price-sensitive contracts, slow adoption of new technology and question marks around the disease burden of these new vaccines, make it challenging for manufacturers to supply paediatric vaccines to the public sector.
"The government revises the EPI programme annually, but due to tight budget allocations, the process of adopting new vaccines into the programme relies on the cost of the vaccines and the severity of the disease burden that can be prevented," explains Wentzel.
Vaccine manufacturers can overcome this challenge by reducing the manufacturing costs of vaccines. This presents a challenge in itself.
"Optimising processes in research and development to be more cost effective will allow manufacturers to reduce the price of paediatric vaccines and boost their chances of entering the EPI programme," states Wentzel. "Apart from cost, it is important to justify the vaccine. Paediatric vaccines are only accepted by the government if the specific disease burden covered by the vaccine is severe enough, which is where combination and 'novel' vaccines can play a huge role."
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the South African paediatric vaccines markets, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.
Strategic Analysis of the South African Paediatric Vaccines Markets is part of the Pharmaceutical & Biotechnology Growth Partnership Services Programme, which also includes research in the following markets: World Adult Infectious Diseases Vaccines Market, European Vaccines Market, Emerging Vaccines and Therapies, World Speciality Vaccine Market, World Regional Travel Vaccine Market, US Cancer Vaccine Market, and various others. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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Strategic Analysis of the South African Paediatric Vaccines Markets - M1A7