DNA Vaccines

DNA Vaccines Global Market Outlook:

• The global vaccines market is expected to grow from $3.1 Billion, with a CAGR of 30-35 percent in the period 2021–2026

• Prevalence of several infectious and non-infectious diseases, along with technological advancements, has resulted in faster production of vaccines. Several government and non-government initiatives and international programs are also boosting the market growth

• Large CROs have been continuously expanding their supply base through acquisitions and partnerships to provide integrated services related to vaccine production

Global Market Size: Vaccine Market

• The DNA vaccine market is highly fragmented with animal DNA vaccine, dominating the market predominantly until 2019. Currently, several clinical trials are under pipeline for the development of human DNA vaccine, post COVID-19 has only helped the market gain for traction, in utilizing DNA-based platform for vaccine development, owing to the benefit of shortening the overall clinical trial timeline.

Porter's Analysis on DNA Vaccines

The supply market is limited and gives higher bargaining power to the research institutions and pharmaceutical companies, which have a proprietary DNA vaccine development platform. Also, suppliers having a good understanding of the sponsor’s requirement gain an upper hand in receiving the repeat business for instance, identifying a suitable pDNA and research on different efficient delivery mechanism of drug.

Supplier Power

• Supplier understanding of manufacturing synthetic DNA, pDNA, and developing a preprimary DNA platform gives them an upper hand. Also, there is a huge FTE rate gap among Europe (except eastern Europe) and the US-based suppliers from their counterparts in India and China

Barriers to New Entrants

• Expertise, technology, and cost are the components driving the category in general, so any new entrant with a particular expertise in a therapeutic area or with adoption of new technology, start working as an independent entity

• Many of the suppliers are an offshoot of the bigger enterprises

Intensity of Rivalry

• The DNA vaccine market is fragmented dominated by tier-1 companies with technology driven players paving their way in market while the human DNA vaccine market is still at its infancy and dominated by niche players and research institutes

Threat of Substitutes

• Other vaccine development platforms: Alternative vaccine development platforms for instance those that are mRNA based, GreVac (TM), a genetic platform that can expedite the vaccine delivery and production, Tonix’s proprietary horsepox vaccine platform, etc., could hamper this particular market

Buyer Power

• Pharma companies are leveraging low-cost countries (mostly, India and China) to consolidate on services, like custom synthesis, analytical testing, and manufacturing. Lower cost and process efficiency are given the highest priority in this type of outsourcing. FFS or FTEs are the most adopted contract models for this type of outsourcing

Cost Structure of DNA Vaccines

• Skilled labour cost constitutes about 35 percent of the total cost in vaccine development, which differs widely, depending on the scope of the trials, location and the therapeutic area involved. Another factor is raw materials contributing about 18 percent of the total cost that’s comprises of direct cost (buying or manufacturing cost) and indirect cost (third-party engagement cost) followed by the other factors