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Pricing strategies for combination pediatric vaccines and their impact on revenue: Pediarix or Pentacel
Health Care Management Science, 05/28/09

Jacobson SH et al. - The resulting analysis shows that Pentacel is not competitively priced when compared to Pediarix, its strongest competitor, for federal contract prices ending 31 March 2010. Accordingly, Sanofi Pasteur should expect to generate low revenue upon market entry, while Pediarix remains well priced, with GlaxoSmithKline able to generate a high level of revenue at the expense of Sanofi Pasteur. The proposed pricing approach suggests an appropriate price for Pentacel whereby a substantial increase in expected revenue can be realized.

Exclusive Author Commentary
Sheldon H. Jacobson, 05/28/09

The analysis in this paper provides a critical economic evaluation for a problem that is being faced by the public health and pediatric immunization communities. This problem will only get more severe when the HIB shortage is relieved, and providers must then choose between Pentacel and Pediarix on an even “playing field”. The results reported in the paper provide a mechanism by which the two combination vaccines can be evaluated and compared to determine which is best suited for any given immunization environment.

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