THIS MATERIAL IS A MARKETING COMMUNICATION.
Vaccines: Past, Present, and Future
The Oldest Biotech Drug in the World
Vaccines are probably the oldest biological drug in the world. In 1796 a British physician used matter from cowpox pustules to inoculate patients successfully against smallpox (caused by a related virus). By 1900, there were two human virus vaccines developed against smallpox and rabies and three bacterial vaccines against plague, typhoid, and cholera.
Immunization (or vaccination) is perhaps the most cost-effective public health intervention and is said to prevent 2-3 million deaths per year.
The vaccine market size is about US$35bn in 2020 (vs. around US$5bn in 2000) and has been growing at around 9% CAGR. The main growth driver has been the launch of key vaccines in the past two decades, including pentavalent DTP-HepB-Hib (2004), meningococcal ACYW (2005), pediatric pneumococcal (2000), HPV (2006), and rotavirus (2006) as well as increasing penetration.
While the market for vaccines is attractive, new entrants in the global vaccine market have been limited. In our view, this is due to:
Long lead times for development.
Complex manufacturing. There are typically 20 to 25 site inspections per year for vaccine facilities from the Food and Drug Administration (FDA), the European Medicines Agency (EMA), the WHO, national regulatory authorities, and internal audits by quality assurance teams.
Complex and different (vs. regular drugs) distribution channels
Complex regulations. As an example, in the US, the FDA requires new vaccine plants to operate for at least two years prior to releasing products to the market to demonstrate sterility, absence of foreign particulate matter, and proper reconstitution and consistency following freeze-drying.
In terms of value, the top four companies contribute over 80% of the global vaccine market. And the top four diseases account for 60% of the revenues. While in terms of volume, MNCs account for ~30% of the volume because the leading companies focus more on selling newer, innovative drugs, while smaller domestic players focus older, less innovative vaccines as well as focus only on the local market.
A Promising Future for mRNA Technology
mRNA is a single-stranded molecule that carries genetic code from DNA in a cell's nucleus to ribosomes, the cell's protein-making machinery. mRNA medicines are simply sets of instructions that can be given to cells in the body to stimulate the production of a specific protein that can help prevent or fight disease. Various companies have developed or are trying to develop technologies and methods to create mRNA sequences that cells recognize as if they were produced in the body.
Several MNCs have already signed partnerships with companies developing mRNA technologies in vaccines. Pfizer, as an example, has partnered with BioNTech for its influenza candidate, Merck with Moderna on RSV, and Sanofi with Translate Bio. CureVac, partnering with Boehringer Ingelheim and Lilly, develops oncology products and Genmab for antibodies.
Staying Ahead with Mirae Asset’s Latest Insights
Disclaimer & Information for Investors
No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.
The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.
Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.
The Company’s Prospectus and the KIIDs can be obtained from www.am.miraeasset.eu/fund-literature/ . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.
A summary of investor rights is available in English from www.am.miraeasset.eu/investor-rights-summary/.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Copyright 2023. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.