Eubiologics adopts flexible pricing for cholera vaccine in UNICEF deal

Korean pharmaceutical company Eubiologics has strengthened its position as the world's sole supplier of public market cholera vaccines, securing a significant contract while implementing strategic price increases for its latest product.

Eubiologics had previously emerged as the world's only supplier of public market cholera vaccines after its major competitor, Shantha Biotechnics—an Indian subsidiary of French pharmaceutical giant Sanofi—announced it would halt production of its Shanchol vaccine by the end of 2023. This decision came at a critical time when the world faces what World Health Organization officials describe as an "unprecedented" series of deadly cholera outbreaks.

In December last year, the company received an award letter from UNICEF for 72 million doses of oral cholera vaccine for 2025, valued at $108.3 million.

The contract will be executed in two phases, with an initial delivery of 52 million doses, followed by an additional 20 million doses contingent upon WHO-PQ certification of the company's second plant's finished product facility.

The company recently secured its first major supply contract under the award letter, announcing a 7 billion won ($5.3 million) deal with UNICEF to supply its oral cholera vaccine to the Democratic Republic of Congo. This contract represents 10.13 percent of the company's 2024 revenue, demonstrating its significant impact on the company's financial performance.

However, with global demand estimated at 80 million doses annually, EuBiologics' current production capacity of 33 million doses remains insufficient.

In response to the international community’s call to address the vaccine shortage, EuBiologics is actively expanding its production capacity. The company is expanding its second plant in Chuncheon and has developed Euvichol-S. With these efforts, it aims to establish an annual production system of 90 million doses by 2026.

While the expansion comes with significant costs, the flexible pricing strategy for Euvichol-S helps sustain profitability.

According to UNICEF's pricing data, the cost of Euvichol-S will vary significantly by country, ranging from $0.70 to $2 per dose, representing a more flexible pricing approach to increase vaccine accessibility in different markets.

"The switch to plastic was primarily driven by transportation considerations, especially for African markets," a Eubiologics official told Korea Biomedical Review. "The plastic tubes reduce weight and eliminate breakage risks during transport, though this change has affected production costs and pricing."

Euvichol-S is also more cost-effective and allows for higher production output compared to its predecessor.

In 2019, the company received support from the Bill & Melinda Gates Foundation for a crucial reformulation of its Euvichol-Plus vaccine, aimed at reducing production costs by 20 percent while increasing production capacity by 38 percent.

"With cholera outbreaks intensifying globally, particularly in Africa, we're experiencing a surge in purchase orders during January and February," the Eubiologics representative told Korea Biomedical Review. "We're internally projecting record-breaking sales this year."

The official also stressed that the company expects its profitability to continue for some time.

"Currently, most vaccines are being distributed for emergency use, and while they're designed for two-dose administration, they're being used as single doses due to urgent needs," the official said. "This demand could increase substantially with the proper implementation of the 'End Cholera 2030' campaign, which advocates for the standard two-dose regimen rather than the current emergency single-dose protocol."

While a new competitor, Bharat Biotech from India, is expected to enter the market with its Hillchol product, the official emphasized that its production capacity remains significantly smaller than Eubiologics'.

"Even when competitors enter the market, we expect to maintain annual sales above 100 billion won due to our established production capacity," the official said.