Tuesday, August 18, 2015

Why no one really wants to make vaccines anymore...

So the companies that may have cured Ebola don't actually expect to make money from it... there's something horribly bizarre about this (fool.com via Instapundit):

However, for investors who bid up Ebola vaccine developers in 2014, there may not be much financial reason to cheer. Even if Merck and NewLink are successful in bringing rVSV-ZEBOV to market, it may not wind up making either company a profit (aside from the $50 million NewLink received upfront from Merck for worldwide rights to the vaccine). The reason is that vaccines are wholly dependent on outbreaks and government stockpiling demands. Out of the gate there could be strong initial demand for the vaccine, especially in select developed nations and the worst-affected African countries. Beyond an initial stockpiling, though, sales of rVSV-ZEBOV could dry up, or at best be incredibly lumpy.
Of course, there are some who also believe that drug companies should take this approach to all their drugs... and then wonder why no one wants to create new drugs.

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