# Vaccine Development, Its Implementation and Price Setting: A Historical Perspective with Proposed Ways to Move Forward

## TL;DR

This paper reviews the history of vaccine development and pricing, highlighting challenges and proposing constrained optimization as a better method for setting vaccine prices.

## Contribution

The paper proposes constrained optimization as a novel approach to vaccine pricing that accounts for budget limitations.

## Key findings

- Vaccine development has become more efficient but pricing remains a challenge due to budget constraints.
- Conventional cost-effectiveness analysis is not ideal for vaccine pricing because it doesn't consider limited budgets.
- Constrained optimization combines value assessment and budget allocation for better vaccine pricing decisions.

## Abstract

Vaccination has resulted in substantial public health benefits for human populations worldwide since it was first introduced more than a century ago. This article presents an overview of the history of vaccine development, its implementation, and price setting, the latter mainly from a developed world perspective. It considers potential issues and challenges. Over time, vaccine development and production has evolved to a market-driven approach, conducted largely by private commercial entities. The complex processes of identifying potential vaccine targets and developing and producing vaccines at scale have now become more efficient. However, vaccine pricing is an emerging concern. The elements that maximize the overall health benefit of vaccination include high volume, high coverage, and rapid initial implementation to achieve the high coverage with the vaccine as quickly as possible. It therefore requires substantial initial investment. Consequently, the price set for the vaccine should be reasonable to avoid limiting the coverage given the available budget. Suboptimal coverage leads to suboptimal benefit if herd protection is not fully achieved. This may disappoint health authorities and may result in program discontinuation. Conventional cost-effectiveness analysis is therefore not ideally suited to vaccine price setting, as it is based on the concept of ‘more for more’, i.e., higher health gain achieved at a higher reimbursement cost that does not account for limited budgets. Constrained optimization (CO) combines value assessment with constrained budget allocation into one analysis method and may therefore be the better option for vaccine pricing.