The Variance-Stabilizing Transformation for the Poisson Rate Ratio: Closed-Form Confidence Intervals

The incidence rate ratio R is the standard measure for comparing event rates in clinical trials and epidemiology. In vaccine trials, the vaccine efficacy is VE = 1− R . When events are rare, the two arm counts are Poisson. The estimator of R is heteroskedastic: its sampling variance changes with the data. So no fixed-width interval covers correctly everywhere. The usual log-Wald interval is undefined at zero events and covers poorly at small counts. Early vaccine and drug-safety readouts fall in exactly this regime. We show that a single reparameterization collapses this bivariate problem to an effective one-parameter family with a quadratic variance function, whose variance-stabilizing transformation is 2 arcsinh . The reduction yields a closed-form confidence interval for R . Its two leading errors, a curvature bias and the variability of the estimated scale, each admit a closed-form correction with no tuning constants. In a Monte Carlo study of our seven arcsinh variants and five competitors, the +Curve+Stu variant covers within 0.002 of the nominal 0.95 for about 50 control and 5 treatment events. Its width is on par with the best competitor. It avoids the conservatism and zero-count breakdown of log-Wald and MOVER. For moderate counts, we recommend this interval; for sparser data, our Bar-Lev–Enis count-shift variant is more robust. The result is a ready-to-use, closed-form interval for the low-count regime. We illustrate it on early Covid-19 vaccine-efficacy readouts and provide reference implementations in R and Python.