Are We Investing Enough in Vaccine Development?

New York, February 02, 2024 - PRISM MarketView - Vaccination is one of the top 10 most significant public health achievements of the 20th century and remains the most effective preventive measure against infectious diseases. Diseases such as smallpox and polio, which can be devastating and even fatal, have been eradicated, while instances of serious diseases including measles, diphtheria, and whooping cough are at an all-time low in the United States, according to the Centers for Disease Control (CDC).

A new report by the Biotechnology Innovation Organization (BIO) shines a light on an industry in need of R&D dollars and deserving of the attention of pharmaceutical companies and investors.

Funding for vaccine research and development is typically sourced from agencies and bodies such as the National Institute of Health (NIH), the European Commission, and the Bill & Melinda Gates Foundation, as well as financial markets. According to BIO’s report, venture capital investments in global companies with infectious disease vaccine programs reached $6.5 billion in the past decade, representing just 3.4% of the total venture capital raised for biopharmaceutical companies during the same period. Oncology drug development companies raised $72.6 billion to fund R&D over the last 10 years.

BIO’s analysis draws attention to a larger problem. Vaccine development is expensive for pharmaceutical companies, in both time and financially, and many have decreased their vaccine portfolios in favor of focusing on other potentially more valuable drugs, even though the numbers show that the likelihood of a vaccine candidate receiving FDA approval are significantly higher than that for biologics and novel small molecules.

BIO says that 249 vaccine candidates are in active clinical development globally, including 31 infectious diseases which do not currently have an approved vaccine. According to the analysis, the global clinical pipeline has breadth, but lacks the depth required for the successful development of vaccines addressing many pathogens.

Clinical success rates for vaccines were above average between 2013 and 2022. Vaccines have had an 11% likelihood of FDA approval from Phase I, outperforming non-vaccine biologics and novel small molecules, which had a 7.6% and 5.6% likelihood respectively over the same time frame. Vaccines for 34 unique pathogens have been approved in the U.S. or globally.

With investor appetite focused almost solely on vaccines relating to COVID-19, which represents nearly 30% of the global popeline, it is critical that the investment gap is closed to help bring important vaccines to market. The report recommends speeding the development of novel approaches with platform technologies, improving patient access to available vaccines, addressing vaccine education and tackling vaccine misinformation, and creating a more predictable review environment.

Vaccines are our best first-line defense against infectious, often deadly pathogens. BIO’s report highlights that scientific and policy changes will be necessary to spur investment in these vital products.

The Biotechnology Innovation Organization (BIO) is the world’s largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial, and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.

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