Drugmakers expend considerable effort and resources in determining the price for a new product (whether the product is a vaccine, drug, or medical device) - recognizing the impact that pricing has on reputation, and the adoption of new technologies.
New vaccine pricing is a complicated process. Understanding what is known and unknown about pricing new vaccines is critical, not only for business executives but also public health officials, scientists and clinicians.
This 2010 article via Human Vaccines (Taylor & Francis Group) from researchers at the University of Pittsburgh provides a comprehensive evaluation and industrial-overview of vaccine pricing. Different companies may utilize different specific procedures in pricing a new vaccine. However most follow a general sequence of ten steps.
The article outlines common pricing strategies used – some focused more heavily on vaccine costs while others more on vaccine demand. Demand-based pricing includes value-based pricing and psychological pricing (which accounts for how the price may affect demand).
A vaccine that falls short of reaching its full potential on the market can have global health ramifications for many years. Better understanding of pricing is likely to benefit all involved in vaccine development, distribution, administration and policy-making.