ABSTRACT A SIR epidemic model with delay, saturated contact rate and vertical transmission is considered. The basic reproduction number is calculated. It is shown that this number characterizes the disease transmission dynamics: if, there only exists the disease-free equilibrium which is globally asymptotically stable; if, there is a unique endemic equilibrium and the disease persists, sufficient cond- itions are obtained for the global asymptotic stability of the endemic equilibrium.
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