Merck's pneumococcal vaccine Capvaxive approved for marketing, poised to challenge Pfizer's Prevnar market position
Merck's subsidiary, Capvaxive, a pneumococcal conjugate vaccine, has been approved by the U.S. Food and Drug Administration (FDA) and is poised to challenge Pfizer's Prevnar market position. Capvaxive can prevent 80% of pneumococcal diseases, higher than Pfizer's Prevnar at 50%. The commercial prospects of Capvaxive depend on whether the CDC recommends the vaccine for adults over 50. Merck's vaccine business is strong, with the HPV vaccine Gardasil generating nearly $9 billion in revenue last year, and the pediatric pneumococcal conjugate vaccine Vaxneuvance expected to become a multi-billion dollar product. Merck is striving to increase new products, with Capvaxive complementing its vaccine business. Keytruda faces pricing pressure
According to the financial news app Zhitong Finance, Merck (MRK.US) subsidiary has received approval from the U.S. Food and Drug Administration (FDA) for its 21-valent pneumococcal conjugate vaccine Capvaxive (V116), which is used to prevent invasive pneumococcal disease and pneumococcal pneumonia in adults aged 18 and older.
Studies have shown that Capvaxive can prevent bacterial strains that cause about 80% of pneumococcal diseases, while Pfizer's (PFE.US) 20-valent pneumococcal vaccine Prevnar has a rate of 50%. This means that Capvaxive may become the preferred vaccine for preventing pneumococcal diseases, challenging Pfizer's leading position in the market for such vaccines.
The commercial prospects of Capvaxive depend on the Centers for Disease Control and Prevention (CDC) in the United States, which will decide later this month whether to recommend Merck's vaccine to adults aged 50 and older.
Cantor Fitzgerald analyst Louise Chen stated that if the CDC favors Capvaxive, Merck may gain a competitive advantage over Pfizer's Prevnar. Data shows that Prevnar holds a market share of nearly 95%, bringing Pfizer over $6 billion in revenue annually, as people typically receive this type of vaccine only once in their lifetime.
As Merck's blockbuster cancer drug Keytruda, which contributes nearly half of the company's revenue, faces pricing pressure towards the end of this decade, Capvaxive serves as a complement to the company's strong vaccine business. Data indicates that Merck's HPV vaccine Gardasil brought in nearly $9 billion in revenue for the company last year, and its pediatric pneumococcal conjugate vaccine Vaxneuvance, approved in 2022, added $665 million in revenue last year, expected to become a product with sales reaching billions of dollars.
Ann Philbrick, Associate Professor in the Department of Family Medicine at the University of Minnesota, expressed excitement about the prospect of a more effective pneumococcal vaccine for healthcare providers. She stated, "Pneumonia causes a high incidence and mortality rate in the elderly, and we need to take any measures to prevent this situation."
