The following HTML text is provided to enhance online
readability. Many aspects of typography translate only awkwardly to HTML.
Please use the page image
as the authoritative form to ensure accuracy.
The Children’s Vaccine Initiative: Continuing Activities: A Summary of Two Workshops Held September 12–13 and October 25–26, 1994
TABLE 2 The Public-/Private-Sector Interface
Government or industry support
Epidemiology and politics
Competition and profit
Board of directors
Board of directors
Board of directors and regulatory authorities
SOURCE: Malinoski, 1994.
acceptable to regulators. Although not directly responsible for these results, the firm may nevertheless have to answer to its shareholders for them. Industry is concerned also about who owns the rights to products developed with public-sector collaboration and what role government should play in setting the prices for those products. Having access to intellectual property and an exclusive license on a technology is a tremendous incentive for industry to invest in vaccine development. However, the high price of the resulting products may limit their availability in most parts of the developing world.
One fundamental difference between industry and the public sector is the former’s need to define and penetrate a market. The vaccine industry, particularly biotechnology companies dependent on venture-capital funding, is very sensitive to the availability of commercial opportunity. In the case of human vaccines, three-quarters of current revenues come from just two regions of the world: Europe and the United States. 27 Much of the remaining money now made from vaccine sales is sheltered in several large markets—like those of Japan and China—that are virtually closed to the outside world. Vaccine purchased by the Pan American Health Organization and UNICEF accounts for roughly 5 percent of worldwide vaccine revenues. Presently, a relatively small share of the world’s vaccines is sold to developing-world nations.
The public sector can provide both “push” and “pull” to enhance the productivity of vaccine research and production. A major push factor is the
World Human Vaccine Markets—Over 60 Products: Which Competitors Are Attacking Viruses? Frost & Sullivan, Inc., 1993.