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LONDON, UK----12 February 2008----Recently all of the major vaccine companies reported their full year sales for 2007. According to the announcements it appears that Merck & Co have taken the number one spot in vaccines. The company recorded $4.3 billion in 2007 (1), a significant increase over $1.9 billion in 2006 and around $300 million more than the nearest rivals. Although a single product, Gardasil (quadrivalent HPV vaccine) has brought this dramatic change ($1.5 billion in 2007), VacZine Analytics believes that in an increasingly competitive market, companies will need two or three blockbusters to stay number one in the future.
Traditionally the big four vaccine companies GlaxoSmithKline, Sanofi-Pasteur, Merck & Co and Wyeth have been divided into two groups. The first group contains the more “European” companies, GSK and Sanofi-Pasteur who run distinctly global businesses and battle each year for the number position. Because of exchange rate fluctuations, it is difficult to argue each year exactly which company is the true leader in terms of sales. Again in 2007 both companies recorded close to $4 billion an increase of around 20% on 2006 but around $300 million behind Merck & Co.
The second group of vaccine companies contains the more US focused companies Wyeth and Merck & Co who previously have managed smaller businesses with sales below $2 billion per annum. Merck & Co historically has been more global in their approach through the joint venture with Sanofi-Pasteur (SPMSD), which encompasses 19 European countries. In 2007 this venture accounted for around 1 billion Euros in sales, a third of which is attributable to Gardasil.
Wyeth, which recorded $2.4 billion in 2007, is essentially a one-product company but continues to grow through the international rollout of Prevnar (PCV7). Interestingly Prevnar now records more sales outside the US demonstrating the ability of the company to act global in preparation for their enhanced product (PCV-13). Although Novartis in 2006 entered the vaccines business with the acquisition of Chiron Vaccines, in terms of sales the company is behind the big four recording around $1.4 billion of which 30% is attributable to diagnostics.
Merck & Co’s success is mainly due to Gardasil again demonstrating that a single blockbuster product can change the fortunes of a vaccine company in a relatively short-space of time. Gardasil passed the $1 billion mark faster than Wyeth’s Prevnar, which took around 4 years from its launch in 2000. It is noteworthy that demand for Prevnar exceeded manufacturing supply soon after launch restricting sales, undoubtedly a valuable lesson for Merck & Co during their pre-launch demand planning. Merck openly state that if they can fully execute their life-cycle plan for Gardasil their target market for the product could reach 374 million individuals which includes females 9-45 yrs and males 9-24 yrs (2). Although now it does not seem that GSK’s Cervarix will be a significant threat to Gardasil, Merck will still need to work hard in convincing international governments to fund Gardasil beyond its core indication.
Merck & Co’s success in 2007 has also been driven by the new rotavirus vaccine, Rotateq which was FDA licensed in 2006 beating it’s GSK rival Rotarix to the key US market. Rotateq recorded $525 million (1) for the year and is predicted by VacZine Analytics to near blockbuster status globally. Other key products have been Varivax, a vaccine for the prevention of chickenpox.
Recent changes in the hierarchy of the big four vaccine companies are a sign of things to come over the next 3-5 years with many more potential blockbuster vaccines forecast to reach the market. GSK and Wyeth are expecting strong revenue gains from their second-generation pneumococcal vaccines, 13-valent Prevnar and Synflorix. Sanofi appears more focused on strengthening existing franchises such as influenza and meningitis. The biggest surprise could come from Novartis Vaccines. If the company successfully positions Menveo (CRM-ACWY) and its novel meningitis B vaccine (3) – it will join the big league with two much needed blockbusters.
John Savopoulos
VacZine Analytics
http://www.vacZine-analytics.com
+44 1279 654514
info@vacZine-analytics.com
Press Release
Merck & Co takes number one spot in vaccines
VacZine AnalyticsPosted on:12 Feb 08LONDON, UK----12 February 2008----Recently all of the major vaccine companies reported their full year sales for 2007. According to the announcements it appears that Merck & Co have taken the number one spot in vaccines. The company recorded $4.3 billion in 2007 (1), a significant increase over $1.9 billion in 2006 and around $300 million more than the nearest rivals. Although a single product, Gardasil (quadrivalent HPV vaccine) has brought this dramatic change ($1.5 billion in 2007), VacZine Analytics believes that in an increasingly competitive market, companies will need two or three blockbusters to stay number one in the future. Traditionally the big four vaccine companies GlaxoSmithKline, Sanofi-Pasteur, Merck & Co and Wyeth have been divided into two groups. The first group contains the more “European” companies, GSK and Sanofi-Pasteur who run distinctly global businesses and battle each year for the number position. Because of exchange rate fluctuations, it is difficult to argue each year exactly which company is the true leader in terms of sales. Again in 2007 both companies recorded close to $4 billion an increase of around 20% on 2006 but around $300 million behind Merck & Co.
The second group of vaccine companies contains the more US focused companies Wyeth and Merck & Co who previously have managed smaller businesses with sales below $2 billion per annum. Merck & Co historically has been more global in their approach through the joint venture with Sanofi-Pasteur (SPMSD), which encompasses 19 European countries. In 2007 this venture accounted for around 1 billion Euros in sales, a third of which is attributable to Gardasil.
Wyeth, which recorded $2.4 billion in 2007, is essentially a one-product company but continues to grow through the international rollout of Prevnar (PCV7). Interestingly Prevnar now records more sales outside the US demonstrating the ability of the company to act global in preparation for their enhanced product (PCV-13). Although Novartis in 2006 entered the vaccines business with the acquisition of Chiron Vaccines, in terms of sales the company is behind the big four recording around $1.4 billion of which 30% is attributable to diagnostics.
Merck & Co’s success is mainly due to Gardasil again demonstrating that a single blockbuster product can change the fortunes of a vaccine company in a relatively short-space of time. Gardasil passed the $1 billion mark faster than Wyeth’s Prevnar, which took around 4 years from its launch in 2000. It is noteworthy that demand for Prevnar exceeded manufacturing supply soon after launch restricting sales, undoubtedly a valuable lesson for Merck & Co during their pre-launch demand planning. Merck openly state that if they can fully execute their life-cycle plan for Gardasil their target market for the product could reach 374 million individuals which includes females 9-45 yrs and males 9-24 yrs (2). Although now it does not seem that GSK’s Cervarix will be a significant threat to Gardasil, Merck will still need to work hard in convincing international governments to fund Gardasil beyond its core indication.
Merck & Co’s success in 2007 has also been driven by the new rotavirus vaccine, Rotateq which was FDA licensed in 2006 beating it’s GSK rival Rotarix to the key US market. Rotateq recorded $525 million (1) for the year and is predicted by VacZine Analytics to near blockbuster status globally. Other key products have been Varivax, a vaccine for the prevention of chickenpox.
Recent changes in the hierarchy of the big four vaccine companies are a sign of things to come over the next 3-5 years with many more potential blockbuster vaccines forecast to reach the market. GSK and Wyeth are expecting strong revenue gains from their second-generation pneumococcal vaccines, 13-valent Prevnar and Synflorix. Sanofi appears more focused on strengthening existing franchises such as influenza and meningitis. The biggest surprise could come from Novartis Vaccines. If the company successfully positions Menveo (CRM-ACWY) and its novel meningitis B vaccine (3) – it will join the big league with two much needed blockbusters.
For more information:
http://www.vaczine-analytics.com/products-expertreact.asp
John Savopoulos
VacZine Analytics
http://www.vacZine-analytics.com
+44 1279 654514
info@vacZine-analytics.com
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