people's vaccine

Oxfam reacts to Pfizer’s financial results on COVID-19 vaccine sales

February 9, 2022

In response to the publication of Pfizer’s financial results on COVID-19 vaccine sales for last year and projections for its Covid-19 vaccine and antiviral pill this year, Oxfam’s Robbie Silverman said:

“Pfizer’s results today are clear evidence of how the company has used its monopoly to enrich its shareholders at the expense of almost half the world’s population who still have no access to lifesaving vaccines.

“Millions are dying from COVID because companies like Pfizer have prioritised profits over saving lives. And it’s paying off for Pfizer, raking in as much as US$1 million every hour in profit.

“It is obscene that we have allowed pharmaceutical companies like Pfizer to put their profits before the good of humanity as the pandemic drags on. No corporations should decide who lives and who dies.”

Notes:

The latest data (from Dec 21) available shows that just one percent of Pfizer’s vaccines have been delivered to low-income countries.
Oxfam estimates Pfizer is making over US$1m an hour profit from the vaccine alone.
Pfizer and the other drugs companies are unable to produce enough vaccines for the world. Oxfam has issued a shareholder filing calling on Pfizer to study the feasibility of transferring vaccine technology and know-how so that production can urgently ramp up around the world.

World Trade Organisation talks on vaccines postponed due to concerns over the spread of a new variant of COVID-19

November 30, 2021

Responding to the announcement that World Trade Organisation talks on vaccines due to take place in Geneva next week have been postponed due to concerns over the spread of a new variant of COVID-19 which has emerged in South Africa, People’s Vaccine Alliance spokesperson and Oxfam health Policy Manager, Anna Marriott, said:

“The vaccine apartheid that rich countries and the World Trade Organisation have refused to address is ultimately responsible for the decision to postpone these talks.

“It should be a stain on the conscience of those who have blocked the waiver of Intellectual Property that South Africa is now facing the threat of a dangerous new virus variant with less than a quarter of its population fully vaccinated, especially given the fact the country has been so vocal in calling for the waiver which would allow more vaccines to be produced globally.

“There can be no more delays, putting pharmaceutical profits before people’s lives is clearly a risk to us all. We do not need a ministerial summit to agree to this, we just need governments to put the good of humanity above the profits of a handful of companies.”

Pfizer, BioNTech and Moderna making US$1,000 profit every second while world’s poorest countries remain largely unvaccinated

November 16, 2021

Demand grows for firms to share vaccine recipes and technology as billionaire pharma bosses convene for ‘Big Pharma Davos’

New figures from the Peoples Vaccine Alliance reveal that the companies behind two of the most successful COVID vaccines – Pfizer, BioNTech and Moderna – are making combined profits of US$65,000 (NZ$92,000) every minute. The figures based on the latest company reports are released as CEOs from pharmaceutical industry meet for the annual STAT summit – the equivalent of a ‘Big Pharma Davos’ – from 16 – 18 November.

These companies have sold the majority of doses to rich countries, leaving low income countries out in the cold. Pfizer and BioNTech have delivered less than one percent of their total vaccine supplies to low-income countries, while Moderna has delivered just 0.2 percent. Meanwhile 98 percent of people in low income countries have not been fully vaccinated.

Maaza Seyoum of the African Alliance and People’s Vaccine Alliance Africa said: “It is obscene that just a few companies are making millions of dollars in profit every single hour, while just two percent of people in low-income countries have been fully vaccinated against coronavirus.

“Pfizer, BioNTech and Moderna have used their monopolies to prioritise the most profitable contracts with the richest governments, leaving low income countries out in the cold.”

Despite receiving public funding of over US$8 billion, the three corporations have refused calls to urgently transfer vaccine technology and know-how with capable producers in low- and middle-income countries via the World Health Organisation (WHO), a move that could increase global supply, drive down prices and save millions of lives. In Moderna’s case, this is despite explicit pressure from the White House and requests from the WHO that the company collaborate in and help accelerate its plan to replicate the Moderna vaccine for wider production at its mRNA hub in South Africa.

While Albert Bourla, the CEO of Pfizer, described the call to share vaccine recipes ‘dangerous nonsense,’ the WHO emergency use approval of the Indian vaccine Covaxin earlier this month is clear evidence that developing countries have the capacity and expertise.

Anna Marriott, Oxfam’s Health Policy Manager said: “Contrary to what Pfizer’s CEO says, the real nonsense is claiming the experience and expertise to develop and manufacture life-saving medicines and vaccines does not exist in developing countries. This is just a false excuse that pharmaceutical companies are hiding behind to protect their astronomical profits.

“It is also a complete failure of government to allow these companies to maintain monopoly control and artificially constrain supply in the midst of a pandemic while so many people in the world are yet to be vaccinated.”

Based on company financial statements, the Alliance estimates that Pfizer, BioNTech and Moderna will make pre-tax profits of US$34 billion this year between them, which works out as over a thousand dollars a second, US$65,000 a minute or US$93.5 million a day. The monopolies these companies hold have produced five new billionaires during the pandemic, with a combined net wealth of US$35.1 billion.

The People’s Vaccine Alliance, which has 80 members including the African Alliance, Global Justice Now, Oxfam, and UNAIDS, is calling for the pharmaceutical corporations to immediately suspend intellectual property rights for COVID vaccines, tests, treatments, and other medical tools by agreeing to the proposed waiver of the TRIPS Agreement at the World Trade Organisation.

They are also calling on governments, including the United States, to use all their legal and policy tools to demand that pharmaceutical companies share COVID-19 data, know-how, and technology with the WHO’s COVID-19 Technology Access Pool and South Africa mRNA Technology Transfer Hub.

More than 100 nations, led by South Africa and India – with the support of the US – have been calling for the TRIPS waiver, which also has the support of over 100 past and present world leaders and Nobel laureates.

Despite this, other rich nations, including the UK and Germany, are still blocking the proposal, putting the interest of pharmaceutical companies over what’s best for the world. This issue is set to dominate the World Trade Organisation Ministerial Summit to be held in Geneva from 30 November to 3 December.

Notes to editors:

A People’s Vaccine Alliance report from 21 October found that Moderna has only delivered 0.2 percent of their total vaccine supply to low-income countries and Pfizer/BioNTech has delivered less than 1
In their Q3 financial statement, Pfizer forecast US$36bn in vaccine revenue for 2021. Gross profit from the revenue is split 50/50 with BioNTech. Pfizer guidance for their income before tax (after splitting profit with BioNTech) is ‘High-20s as a Percentage of Revenues.’ A conservative 25% margin would bring Pfizer’s profit before tax to US$9bn in 2021 from the Comirnaty Covid vaccine.
In BioNTech’s Q3 financial statement they forecast €16-17 billion in vaccine revenue for 2021. In the 9 months ending September 30 the company made € 10.3bn profit before tax on €13.4bn, revenue giving a 77% profit margin. Using a conservative €16bn forecasted revenue for the full year, we therefore estimate that at a 77% profit margin, BioNTech will make €12.3bn in pre-tax profit in 2021 – or US$14.7bn using the 2021 average exchange rate.
Moderna’s Q3 profit before tax for 9 months ending September 30 is US$7.8bn on US$11.2bn revenue giving a pre-tax profit margin of 70%. The company projects full year 2021 sales to be “between US$15 billion and US$18 billion”. Using the lower end of the estimate – 70% of US$15bn is US$10.5bn in profit for 2021. The vaccine is Moderna’s only commercial product.
We therefore estimate the combined 2021 profit before tax for Moderna and Pfizer and BioNTech as US$34bn. There are 525600 minutes in a year giving US$ 64,961 profit before tax per minute or US$1,083 per second. Pre-tax, rather than net, profit is used as Pfizer only report the guidance for pre-tax profit margin.
One New Zealand dollar is worth approximately 70 US cents.

Pfizer voluntarily licenses oral Covid treatment

November 16, 2021

In reaction to Pfizer’s announcement of voluntary licenses of its COVID-19 oral antiviral treatment Paxlovid to the Medicines Patent Pool, People’s Vaccine Alliance spokesperson and Oxfam America’s Senior Advocacy Advisor, Robbie Silverman, said:

“Pfizer’s announcement to voluntarily licence the COVID treatment Paxlovid is welcome but is far from enough. It means billions of people in developing countries will be able to access the treatment through generic production, but billions of people will still be left without as the deal excludes many developing countries like Iraq and Lebanon.

“This move also begs the important question: If Pfizer can share data and intellectual property on a medicine, why have they so far categorically refused to do so for their COVID vaccine? Perhaps the answer is in the profit they continue to reap thanks to their monopoly, hundreds of dollars every single second.

“Today’s licensing agreement shows that Pfizer is feeling the pressure from global campaigners. But it is clear that relying on the voluntary actions of pharmaceutical companies alone will not secure urgently needed access to tests, medicines and vaccines for everyone, everywhere. Only concerted action by governments to force them to share technology, know-how, and intellectual property will achieve this.

“All governments must move to immediately support the proposal of South Africa and India at the World Trade Organisation for a temporary waiver on all COVID-19 medical technologies and they must also insist on the mandatory transfer of vaccine technology to the many competent manufacturers all over the developing world who stand ready to produce the vaccines.”

BioNTech and Moderna’s African vaccine announcements “pittance”, People’s Vaccine Alliance says

October 27, 2021

Vaccine equity campaigners have called news that Covid-19 vaccine manufacturer BioNTech will start building a vaccine production facility in Rwanda next year “far too little; far too late”.

The People’s Vaccine Alliance has also said that Moderna’s new commitment to produce 110 million doses for the African Union as “barely worth the paper it is written on” after the company failed to deliver promised vaccines to COVAX, calling on the US government to step in and mandate the company to commit to technology transfer.

The alliance, a coalition of more than 75 organisations including Oxfam, UNAIDS, Global Justice Now, and Amnesty International, has called on BioNTech and Moderna to share the technology and know-how for its vaccine with the WHO’s Covid-19 technology access pool (C-TAP) and mRNA hub in South Africa.

While the alliance calls more global south manufacturing a “positive development”, it says BioNTech’s offer of 50 million doses from the middle of next year is “pittance” compared to the amount produced in the company’s facilities in Germany.

Reacting to BioNTech’s announcement, Anna Marriott, policy lead for the People’s Vaccine Alliance, said:

“After huge public pressure, BioNTech has finally committed to manufacturing vaccines in the global south. While this is a positive development, it’s far too little, far too late from a company that has made a killing from the pandemic.

“Offering to only start building a facility in Africa in the middle of next year that will then at some point produce just 50 million doses – enough for just 2 per cent of the continent’s population – is a pittance when just one of their factories in Germany produces more than that each month.

“If BioNTech really wants to change the course of this pandemic, it should immediately share the technology and know-how for this publicly-funded innovation with the WHO’s technology pool and mRNA hub in South Africa, so that more developing country manufacturers can produce these game-changing vaccines.”

Reacting to Moderna’s announcement, Anna Marriott, policy lead for the People’s Vaccine Alliance, said:

“After having so far delivered zero of their committed doses to COVAX, this new Moderna Memorandum of Understanding with the African Union to at some point deliver 110 million more vaccines is barely worth the paper it is written on.

“This is a publicly funded vaccine and should be available to all as a public good. It is beyond time that the US government step in and insist the vaccine technology is shared immediately with the WHO mRNA technology hub.”

Notes

Read The People’s Vaccine Alliance full report: “A Dose of Reality: How rich countries and pharmaceutical corporations are breaking their vaccine promises“.

A report last month from Amnesty International found that large pharmaceutical companies, including BioNTech and Moderna, were fuelling an unprecedented human rights crisis through their refusal to waive intellectual property rights and share vaccine technology.

Vaccine monopolies make cost of vaccinating the world against COVID at least 5 times more expensive than it could be

July 29, 2021

The cost of vaccinating the world against COVID-19 could be at least five times cheaper if pharmaceutical companies weren’t profiteering from their monopolies on COVID-19 vaccines, campaigners from the People’s Vaccine Alliance said today.

New analysis by the Alliance shows that the firms Pfizer/BioNTech and Moderna are charging governments as much as USD$41 billion (NZD$58 billion) above the estimated cost of production. Colombia, for example, has potentially overpaid by as much as USD$375 million (NZD$539 million) for its doses of the Pfizer/BioNTech and Moderna vaccines, in comparison to the estimated cost price.

Despite a rapid rise in COVID cases and deaths across the developing world, Pfizer/BioNTech and Moderna have sold over 90 per cent of their vaccines so far to rich countries, charging up to 24 times the potential cost of production. Last week Pfizer/BioNTech announced it would licence a South African company to fill and package 100 million doses for use in Africa, but this is a drop in the ocean of need. Neither company have agreed to fully transfer vaccine technology and know-how with any capable producers in developing countries, a move that could increase global supply, drive down prices and save millions of lives.

Analysis of production techniques for the leading mRNA type vaccines produced by Pfizer/BioNTech and Moderna – which were only developed thanks to public funding to the tune of USD$8.3 billion (NZD$11.9 billion) – suggest these vaccines could be made for as little as USD$1.20 (NZD$1.73) a dose. Yet COVAX, the scheme set up to help countries get access to COVID vaccines, has been paying, on average, nearly five times more. COVAX has also struggled to get enough doses and at the speed required, because of the inadequate supply and the fact that rich nations have pushed their way to the front of the queue by willingly paying excessive prices.

Without pharmaceutical monopolies on vaccines restricting supply and driving up prices, the Alliance says the money spent by COVAX to date could have been enough to fully vaccinate every person in Low and Middle-income countries with cost-price vaccines, if there was enough supply. Instead at best COVAX will vaccinate 23 per cent by end of 2021.

The Alliance of nearly 70 organisations, including the African Alliance, Oxfam and UNAIDS, says the failure of some rich countries to back the removal of monopolies and to drive down these excessive prices has directly contributed to vaccine scarcity in poorer nations.

Anna Marriott, Oxfam’s Health Policy Manager, said: “Pharmaceutical companies are holding the world to ransom at a time of unprecedented global crisis. This is perhaps one of the most lethal cases of profiteering in history.

“Precious budgets that could be used for building more health facilities in poorer countries are instead being raided by CEOs and shareholders of these all-powerful corporations.”

Winnie Byanyima, Executive Director of UNAIDS said: “Health workers are dying on the frontline all over the world every single day. Uganda alone lost more than fifty health workers in just two weeks. A reminder of the time when millions of people were dying of HIV in developing countries because the medicines that could save them were priced too high.

“I see lives being saved in vaccinated countries, even as the Delta variant spreads, and I want the same for developing countries. It is criminal that the majority of humanity is still facing this cruel disease unprotected because Pharma monopolies and super profits are being put first.”

While some rich countries have started to re-distribute a fraction of their excess doses and have made funding commitments, this charity is not enough to fix the global vaccine supply problems. The People’s Vaccine Alliance is calling on all governments to insist that the vaccine technology is transferred – to enable all qualified manufacturers worldwide, especially those in developing countries, to produce these vaccines. Governments should also urgently approve a waiver of intellectual property rules related to COVID-19 technologies as proposed by South Africa and India.

The waiver has been supported by over 100 nations including New Zealand. The US and France has now entered formal negotiations at the World Trade Organisation that met again this week. But the proposal has been repeatedly blocked by Germany, the UK and the European Union.

Maaza Seyoum, from the African Alliance and People’s Vaccine Alliance Africa, said: “Enabling developing country manufacturers to produce vaccines is the fastest and surest way to ramp up supply and dramatically drive down prices. When this was done for HIV treatment, we saw prices drop by up to 99 per cent.

“What possible reason then do the governments of the UK, Germany and EU have to ignore the repeated calls from developing countries to break the vaccine monopolies that could drive up production while driving down price?”

Less than one per cent of people in Low Income countries have received a vaccine, while the profits made by the companies has seen the CEOs of Moderna and BioNTech become billionaires.

Before the pandemic, developing countries paid a median price of USD$0.80 (NZD$1.15) a dose for all non-COVID vaccines, according to analysis by the World Health Organization (WHO). While all vaccines are different and the new vaccines may not be directly comparable, even one of the cheapest COVID 19 vaccines on the market, Oxford/AstraZeneca, is nearly four times this price; the Johnson and Johnson vaccine is 13 times; and the most expensive vaccines, such as Pfizer/ BioNTech, Moderna and the Chinese produced Sinopharm, are up to 50 times higher.

It is vital that vaccine manufacturers are forced to justify why their vaccines cost more, but open competition is also critical to bring down prices and increase supply. All vaccines, old and new, only come down in price once there are multiple competitors in the market.

Never in history have governments been buying more doses of vaccines for one disease and the large-scale production should drive down costs, enabling companies to charge lower prices. Yet the EU reportedly paid even higher prices for its second order from Pfizer/BioNTech. Dramatic price escalation is predicted to continue in the absence of government action and with the possibility of booster shots being required for years to come. The CEO of Pfizer has suggested potential future prices of as much as USD$175 (NZD$251) per dose – 148 times more than the potential cost of production. And because pharmaceutical companies anticipate charging such high prices for boosters, they will continue to sell doses to rich countries at the expense of protecting lives globally.

In a briefing note, published today, The People’s Vaccine Alliance highlighted examples of how much both developing and wealthier nations have been potentially overpaying:

Pfizer/ BioNTech are charging their lowest reported price of USD$6.75 (NZD$9.70) to the African Union but this is still nearly 6 times more than the estimated potential production cost of this vaccine. One dose of the vaccine costs the same as Uganda spends per citizen on health in a whole year.
The highest reported price paid for Pfizer/BioNTech vaccines was paid by Israel at USD$28 (NZD$40.26) a dose – nearly 24 times the potential production cost. Some reports suggest they paid even more.
The EU may have overpaid for their 1.96 billion Moderna and Pfizer/BioNTech vaccines by as much as €31 billion (NZD$52.8 billion).
Moderna has charged countries between 4 and 13 times the potential cost price of the vaccine and reportedly offered South Africa a price between USD$30-42 (NZD$43-58) a dose – nearly 15 times higher than the potential production cost.
Colombia, which has been badly affected by COVID, has been paying double the price paid by the USA for Moderna vaccines. For Moderna and Pfizer/BioNTech combined, the country has potentially overpaid by as much as USD$375 million (NZD$539.2 million).
Senegal, a lower-income nation, said it paid around USD$4 million (NZD$5.7 million) for 200,000 doses for Sinopharm vaccines, which equates to around USD$20 (NZD$28.8) a dose.
The UK alone has potentially paid £1.8 billion (NZD$3.6 billion) more than the cost of production for the Pfizer and Moderna vaccines –enough money to pay every worker in its National Health Service a bonus of more than £1000 (NZD$2000).

Maaza Seyoum said: “As long as the pharmaceutical corporations retain their monopolies on the life-saving technology, they will always prioritise contracts where they can make the most excessive profits, leaving developing countries out in the cold.

“With government budgets in crisis the world over, and COVID cases rising in many developing countries, it’s time to stop subsidising corporate fat cats. It’s time to put people before profits.”

/Ends

Notes:

A copy of the briefing note is available here: https://bit.ly/TheGreatVaccineRobbery

Due to lack of transparency of pharmaceutical companies, the exact cost of research and development and manufacturing of vaccines are unknown. Estimates used in this release are based on studies of mRNA production techniques, carried out by Public Citizen with engineers at Imperial College. Their analysis suggests that it could cost USD$9.4bn to produce 8bn doses of the Pfizer/BioNTech vaccine – USD$1.18 per vaccine and for Moderna it would cost USD$22.8bn to produce 8bn doses – USD$2.85 per vaccine: https://www.citizen.org/article/how-to-make-enough-vaccine-for-the-world-in-one-year/
The figure that companies have been charging up to 24 times the potential cost of production is based on the reported information that is available. The highest reported cost paid was by Israel. For many countries there is no available data on how much they have paid for these vaccines.
Pfizer forecasts sales of USD$26 billion in revenue for 1.6 billion vaccine doses, therefore at an average cost per dose of USD$16.25 (against a potential cost price of USD$1.18 per dose). Moderna forecasts sales of between 800 million and 1 billion doses, therefore at an average cost of between USD$19.20 and USD$24 per dose (against a potential cost price of USD$2.85 per dose). The total combined forecasted sales income equates to USD$41 billion above the potential cost of production.
Colombia is reported to have paid USD$12 per dose for 10 million doses of Pfizer/BioNTech and USD$29.50 per dose for 10 million doses of Moderna. A potential overspend of USD$375 million.
Vaccine Billionaires data available here: https://www.oxfam.org/en/press-releases/covid-vaccines-create-9-new-billionaires-combined-wealth-greater-cost-vaccinating
Pfizer/ BioNTech and Moderna have received USD$8.25 billion dollars in public support for their vaccines between them – USD$5.75 billion for Moderna and USD$2.5 billion for Pfizer/BioNTech. This includes public funding and guaranteed government pre-orders. https://www.oxfamamerica.org/explore/research-publications/shot-recovery/
COVAX has reported that for its first 1.3 billion doses it paid an average price of USD$5.20 a dose. Given available reported prices for the vaccines in COVAX’s portfolio it is reasonable to assume COVAX paid less than USD$5.20 for the Oxford/AstraZeneca vaccine (reducing the average dose price), and likely paid more for the Pfizer/BioNTech (increasing the average dose price). The schemes’ lack of transparency prohibits proper scrutiny.
Gavi reports COVAX will achieve 23 per cent coverage in AMC populations by end of 2021: https://www.gavi.org/sites/default/files/covid/covax/COVAX%20Supply%20Forecast.pdf
Competition drove down first-line regimen HIV medication prices by 99 per cent over a 10 year period, from USD$10,000 to as low as USD$67 per patient per year: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3078828/#B67
According to WHO, pre-pandemic, developing countries normally pay an average of $0.80 per dose for vaccines.
The Chinese Sinopharm vaccine is being sold for up to USD$40 a dose (making it 50 x more expensive than USD$0.80): https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(21)00306-8/fulltext#sec1
The EU’s 7-year Neighbourhood, Development and International Cooperation Instrument (NDICI) aid budget is €79.5 billion.
The UK is reported to have paid £15 a dose for the Pfizer vaccine and has ordered 100 million doses. For Moderna they are reported to have paid £25 per dose and have ordered 17 million doses. If these two vaccines were produced at the production price estimated by Public Citizen the UK would have saved £1.8 billion, enough to pay every NHS worker a bonus of £1,012 (based on the NHS having 5million members of staff in England, 140,000 in Scotland, 78,000 in Wales and 64,000 in Northern Ireland).
For other examples of how much developing and wealthier nations have been potentially overpaying on vaccines, calculations and references are available in the briefing note here: https://bit.ly/TheGreatVaccineRobbery