Vaccines 'Golden Era' under threat

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Vaccines 'Golden Era' under threat

Tuesday , April 22, 2008

A new 'Golden Era of Vaccines' could be around the corner, helping the

Prevention and treatment of diseases in millions of people - but

Breakthroughs could be delayed if governments continued to squeeze spending.

That is the warning contained in a new study by Professor Louis Galambos of

The Hopkins University, a world-leader in research and education in

Medicine and public health.

The study was commissioned by the UK industry association the ABPI and the

UK Vaccines Industry Group, and was financed by Merck Sharp & Dohme, and as

Such contributes strongly to the industry argument for long-term investment

In vaccines.

The report's warning is particularly pertinent in Europe, as two thirds of

World R & D in vaccines is being conducted in Europe ¿ but Prof Galambos says

Continuing pressure on prices could hit investment.

" The world is on the verge of a new golden age in vaccines research, but

There are grave threats to this bright future, " he says.

The professor identified the period after the Second World War as the 'first

Golden age' when there were a series of breakthroughs against a number of

Fatal and disabling diseases, including measles, diptheria and polio.

" History shows us that, if governments try to treat a research-based,

Innovative industry in the same way as if they were buying paper-clips it

Will have dire consequences. Last time this 'commoditisation' of the market

Occurred, the number of major vaccine producers dropped sharply.

" Pressure to reduce healthcare costs, such as is happening in the UK at the

Moment, and the decline of health insurance protection in America are two

Examples of the thinking that could have this effect. " he says.

The well known typical timelines for pharmaceutical drug development (10-12

Years) and costs (in excess of £500 million to develop one single new drug)

Are often even greater in the vaccines field.

Prof Galambos says the 'first golden age' for vaccines - which saw the

Eradication of smallpox as well as other major advances - ended because of

Short-sighted measures by governments, which he says are re-emerging today.

The global vaccines market was worth an estimated 9.5 billion euros in 2006,

And analysts believe this could grow to between 16 and 23 billion euros by

2011.

The report underlines a similarity in the US and UK system for purchasing of

Vaccines, where there is just one buyer - the government. Similar to a

Monopoly where there is just one seller, having just one buyer in a market

Is known as a monopsony.

The Department and the NHS Purchasing and Supply Agency use restricted

Bidding, inviting companies to tender for contracts. The report concludes

This situation squeezes vaccine manufacturers profits and undermines the

Long-term investment in R & D.