of the vaccine and the time at which a steady-state yield of benefits would be achieved.
Calculation of the annualized present value of expected reduction in morbidity costs; as illustrated in Figure 7.2. This procedure can also be applied to the costs of adverse effects calculated as noted under (6) above.
Calculation of the net costs associated with each vaccine. The net totals represent the reductions in morbidity costs (taking into account vaccine efficacy, utilization, probability of success, and time to steady-state yield of benefits, Figure 7.2), adjusted for the actual cost of the vaccination program (at the predicted utilization rate, Figure 7.3), the annualized cost of vaccine development (see Chapter 3), and, where necessary, the actual cost of adverse effects (i.e., at the predicted utilization rate).
A more detailed explanation of some elements used in the calculations and a discussion of certain assumptions adopted to simplify the process appear below.