Not everyone suffers from the onslaught of Covid-19. And I’m not referring to Pharmally and its cohorts. The greatest beneficiaries of the coronavirus pandemic are the multinational drug companies that have been cashing in on the vaccines they manufacture. For instance, Pfizer and its partner, BioNTech, made no bones of the fact that their Covid-19 vaccine has given them huge paydays.
Pfizer, which did not avail itself of the US government’s financial assistance under the Operation Warp Speed to develop the antidote against the raging pandemic, had no intention not to amass huge revenues unlike many drug manufacturers that committed to forgo profits on their vaccines at least during the pandemic. Pfizer announced that its shot had brought in $3.5 billion in revenues during the first quarter of 2021, making the Covid-19 vaccine its greatest contributor to the company’s income. Its profit margin on the vaccine has been earlier predicted to be in the range of 20 percent. This is unconscionable in the light of the ravaging pandemic.
Its vaccine, which is developed from an unproven technology, is acknowledged as one of the most efficacious shots against Covid-19. It has saved countless lives that were victims of the pandemic and is acknowledged to be effective even against the dreaded Delta variant. It is recommended that moderately to severely compromised Covid-19 patients need to get a booster shot at least 28 days after getting their second jab. Others should get a third shot at least six months after completing their second shot. Pretty soon after getting the US Food and Drug Administration (FDA) approval in August 2021 for persons at least 16 years of age, Pfizer may now commercially market its vaccine under the label “COMIRNATY”. Aside from the product name, there has been no change in the formulation of the vaccine. For those 12 years old but less than 16 years of age, the name Pfizer-BioNTech Covid-19 vaccine shall be retained. With this development, COMIRNATY will be distributed widely in the market and Pfizer expects to reap billions and billions of revenues in the coming years. In fact, it was reported that Pfizer hopes to generate $33.5 billion in sales this year alone. This is higher than its original projection of $26 billion, which was revised after posting a very successful second quarter earnings. Its customer base is also expanding. Aside from the booster shots which will soon be required for the adult population, Pfizer expects to get Emergency Use Authorization for children as young as six months to 11 years old. The company has successfully conducted a study to determine vaccine safety in very young children. It will not be a wild guess if its vaccine will be authorized for use to nearly the entire population of the world. No wonder that one analytics firm has recently predicted that Pfizer will be able to sell $54.5 billion worth of vaccines in 2022. I think this is even a conservative estimate. The company spokesman has proudly announced that “Pfizer and BioNTech have put in place a robust research program to ensure that our vaccine continues to offer the highest degree of protection possible.” But quality has its cost.
There is no question that the Pfizer jab is the most coveted vaccine against the Covid-19. While the WHO does not prefer any particular type of vaccine, it is generally accepted that many people would rather wait for its availability rather than get an immediate jab provided by other drug companies. It has become one of the world’s most sought-after commodities even soaring higher than the most famous brand of Nike. So far, close to 4 billion doses of Pfizer vaccine have been purchased and administered to almost all nationalities around the world. Many governments, particularly those who could hardly afford the prohibitive amount needed to finance the purchase of the vaccine, are practically begging the company to sell them the vaccine. Poor countries, including the Philippines, have contracted massive loans to provide sufficient vaccines to their people. This has further exacerbated the ailing economies of developing countries. Pfizer has become enormously powerful. Since the sale of the vaccine is done through negotiation between the company and the countries involved, Pfizer is able to take advantage of the hapless countries. It transacts under a veil of secrecy and the terms of the contract are held under strict confidentiality. We have heard this statement from our own negotiators who have been directly dealing with Pfizer when they were asked about the cost of the vaccines. Pfizer defended its position by saying that confidentiality clauses are standard terms in commercial agreements intended to protect the confidential commercial information conveyed during the negotiations. However, one consumer rights group, Public Citizen, which has gained access to some agreements entered into by Pfizer, revealed that Pfizer places “its interests before public health imperatives.” In its report, Public Citizen revealed how Pfizer uses its power to “shift risk and maximize profits.” For instance, Pfizer invariably bar donations of Pfizer vaccines by the buyers. It also reserves the right to change terms of the contract such as the delivery dates and volumes of delivery by batches. Pfizer also requires indemnity against any damage, injury or suit and even immunity against seizure of its assets. Due to onerous terms, completion of the contracts is delayed and results in slower vaccination rollouts.
Pfizer and all pharmaceutical companies producing Covid-19 vaccines should be wholly transparent in their dealings with their customers. We are confronting a pandemic that has caused untold suffering to the whole world. Millions have died and millions more have suffered from its virulence. Tom Wright of Transparency International Health Program lamented that “hiding contracts from public view or publishing documents filled with redacted texts means we don’t know how or when vaccines will arrive, what happens if things go wrong and the level of financing risk buyers are absorbing.” Moreover, it should adopt a tiered-pricing approach so that poorer countries can procure Pfizer vaccine at a lower price. Likewise, the company should proportionately allocate its vaccines among low, middle, and rich countries instead of giving priority to well-off nations that can pay any price. Paraphrasing one whistleblower, Pfizer should “moderate its greed.” It should be kept in mind that “the hottest place in hell is reserved for those who take advantage of the poor in times of calamity.”