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FIGURE 7.2 Calculations of expenditures on vaccines.

diseases in which vaccine efficacy is expected to be the same for all conditions, calculation of PRMM simply entails multiplying the vaccine preventable illness values (one for each IME perspective) by the efficacy. If the vaccine is expected to have different efficacies for various conditions, the calculations are more complex. PRMM values must be calculated separately for each morbidity category/age group combination and then added together.

  1. Calculate the annualized present value of potential health benefits. These values represent an adjustment of the possible reductions in morbidity and mortality values to account for the probability of a vaccine’s successful development and the time at which a steady-state yield of benefits would be achieved. As discussed in Chapter 6, it is assumed for this analysis that there are no differences in the utilization of vaccine candidates.

  2. Calculate the vaccine expenditures necessary to achieve the possible reductions in morbidity and mortality, as illustrated in Figure 7.2.

A more detailed explanation of some elements in the calculations and a discussion of certain adopted assumptions appear below.

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