The recent 2019–2020 Corona virus has created a huge demand for vaccines. However, the emergency vaccine market is quite different than the regular vaccine market.
Interesting market characteristics: difficult R&D phase, need large supplies of “eggs”, large, short term supply and resources shortage, bleak long term market profits prospects, asynchronized cycle between outbreak and vaccine development.
The main mechanisms are two: push and pull by government
Push: The government needs to fund the R&D to make sure it’s drug companies can get over the hurdle of developing the emergency vaccines necessary to fight the pandemic. One example, in the case of corana virus, US government actually will preserve “government employee chickens” farm secret farm locations” to secure the supply of large quantities of eggs.
Pull: Government must be stepping in to be the “market” and guarantee the artificial demand during the time of no outbreak. This will incentivizes the biotech and pharmaceutical companies
