Chapter pages in book: (p. 35- 72) 2Creating Markets for New Vaccines Part I: Rationale

Malaria, tuberculosis, and the strains of HW common in Africa kill approxi-mately five million people each year. Yet research on vaccines for these diseases remains minimallargely because potential vaccine developers fear that they would not be able to sell enough vaccine at a sufficient price to recoup their re-search expenditures. Enhancing markets for new vaccines could create incentives for vaccine re-search and increase accessibility of any vaccines developed. For example, the President of the World Bank has proposed establishing a fund to help develop-ing countries finance purchases of specified vaccines if they are invented. The U.S. administration's 2000 budget proposal includes a tax credit for new vac-cines that would match each dollar of vaccine sales with a dollar of tax credits. This paper examines the rationale for such proposals. Private firms currently conduct little research on vaccines against malaria, tuberculosis, and the strains of HIV common in Africa. This is not only because these diseases primarily affect poor countries, but also because vaccines ar