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Summary
- The UK and EU are in talks to waive vaccine patents after the US supported the initiative.
- India and South Africa have long been asking for waiving patents under the World Trade Organisation’s Trade-Related Aspects of Intellectual Property Rights agreement
The UK and European government are currently in discussions to waive Covid-19 vaccine patents to help combat production bottlenecks being faced by low-and middle-income countries.
Governments have faced mounting pressure after the US’ Biden administration supported the proposal at the World Trade Organisation (WTO) recently. India and South Africa have long been advocates for waiving vaccine patents under the WTO’s intellectual property rights agreement known as the Trade-Related Aspects of Intellectual Property Rights (TRIPS).
Around 400 politicians, academics and other stakeholders wrote to the PM Boris Johnson calling for waiving patents. According to data from Duke University, UK was the second biggest hoarder of vaccines, with four times the amount of vaccines over the size of its population. Canada is ranked as the highest hoarder among countries.
UK-based vaccine maker AstraZeneca (LON: AZN) is one of the covid jabs which are being sold and distributed at not for profit prices while the pandemic rages on. It currently accounts for 98 per cent of the Covax facility, a global program to provide vaccine access.
(Source: Refinitiv, Thomson Reuters)
However, the facility is presently facing a shortage of 140 million doses due to the devasting second wave crisis in India. Poorer countries currently have only 17 per cent of vaccines, which the WTO has termed it vaccine apartheid.
Here we look at the major vaccine companies which will get impacted if the covid vaccine waiver is approved by the WTO:
- Pfizer (LON: 0Q1N)
The US-based pharmaceutical giant Pfizer’s CEO Albert Bourla said recently he was against waiving vaccine patents and recommended ramping up production capabilities of existing facilities.
The company is producing covid-19 vaccine in partnership with BioNtech, a German pharma company. The German government had also stressed keeping patents intact in early May.
PFE recently announced its Q1 2021 results, it reported its sales touched US$14.6 billion, beating expectations of US$13.5 billion.
(Source: Refinitiv, Thomson Reuters)
PFE’s shares closed at USD 40.12, up by 0.73 per cent as of 20 May.
Also Read: Pfizer-BioNTech vaccine gets Medsafe’s go-ahead for roll-out in New Zealand
- Moderna Inc (LON: 0A45)
Another US based pharma major Moderna said it would not be impacted by a potential waiver of patent, although it has faced production bottlenecks.
The company received approvals from Japan and South Korea today to be used for their population’s vaccination drive. Japan also approved AZN’s jab today. Moderna has a deal to supply up to 40 million doses to South Korea, with its shipment and delivery timeline yet to be announced.
(Source: Refinitiv, Thomson Reuters)
MRNA’s shares closed at USD 165.97, up by 5.05 per cent as of 20 May.
Also Read: Why Moderna, Pfizer Et Al Are Poised for Strong Gains in FY 2021
- Johnson and Johnson (NYSE:JNJ)
US-based vaccine maker Johnson & Johnson was one of the newer vaccines to be granted approval for mass inoculation.
Bolivia signed a deal with Canadian pharma company Biolyse Pharma Corp to produce the Johnson & Johnson vaccine just days ago. Bolivia will have to receive authorisation from Johnson and Johnson or a compulsory licence from Canada after the European Commission laid out plans to boost production challenges by WTO under existing policies.
Moreover, according to media reports, pharma lobbyists representing major pharma companies, including PFE, JNJ, and AZN are drumming up support from lawmakers to reverse the US government’s decision to waive patents.
(Source: Refinitiv, Thomson Reuters)
JNJ’s shares closed at USD 171.07, up by 0.58 per cent as of 20 May.
