At the time of the
onset of the corona epidemic, we were warned that it takes years to develop a
vaccine for any disease. So don't expect too much about vaccines.
But now with the
passing of ten months, the corona virus epidemic vaccines are being given and
many of the companies that are ahead in inventing these vaccines are behind
them.
As a result,
investment analysts predict that at least two of these companies (American
biotech company Moderna and Germany's Bio-En-Tech), together with their partner
company, Fizer of America, will trade billions of dollars next year.
But it is not
clear how much money will be made by the manufacturer of the vaccine.
The way these
vaccines have been funded and the way a large number of companies have come
forward to manufacture vaccines, it seems that there will be no long-term
opportunity to make big profits.
Who has invested
money
Seeing the need of
vaccine in times of epidemic, the government and fund givers gave billions of
pounds to plan and test the vaccine. Organizations like Gates Foundation openly
supported these schemes. Apart from this, many people also came forward and
supported these schemes. Alibaba founder Jack Ma and music star Dolly Parton
also came forward and gave funds for these schemes.
According to
science data analytics company Airfinity, £ 6.5 billion has been given by
governments to make and test Kovid. At the same time, 1.5 billion pounds were
given from non-profit organizations.
Only 2.6 billion
pounds came from the companies' own investment. Many of these companies rely
heavily on external funding.
This was a big
reason that big companies did not show any haste in funding vaccine projects.
Producing vaccines
in such emergencies in the past has not proved very beneficial. The process of
finding a vaccine takes time. Poor countries require a large consignment of
vaccine but due to the high price they cannot take it. In rich countries, more
profits are made from medicines taken daily.
The companies that
manufacture vaccines for diseases like Zika and SARS suffered heavy losses. On
the other hand, the market for vaccine for flu like diseases has billions. In
such a situation, if the Kovid-19 remains like the flu and it needs to be
vaccinated annually, then it can be beneficial for the companies making the
vaccine. But only for those companies which will be most effective, as well as
in the budget.
What price are
they putting?
Some companies do
not want to be seen making profit in this time of global crisis, especially
after getting so much funding from outside. Major US pharmaceutical companies
such as Johnson & Johnson and AstraZeneca of the UK are working closely
with Oxford University-based biotech company.
She has promised
on her behalf that she will keep the cost of her vaccine as much as possible so
that only her cost comes out. As of now, in terms of AstraZeneca, it is
believed that it will be available at the cheapest price (4 dollars i.e. around
Rs 300 per dose).
Moderna is a small
biotechnology company. Which has been working on the technology behind RNA
vaccine for years. The price of dose against them is more than about 37 dollars
i.e. two thousand seven rupees. Their aim is to earn profit for the
shareholders of the company.
However, this does
not mean that these prices have been fixed.
Usually,
pharmaceutical companies pay different fees in different countries. It depends
on the governments. AstraZeneca has promised to keep prices low for the
epidemic. Maybe they will start charging a comparatively higher price from next
year. It completely depends on the nature of the epidemic.
Emily Fields, head
of European pharmaceuticals at Barclays, says, "Now the governments of
rich countries will pay more. They are so desperate about vaccines or dosages
just how they can end the epidemic."
She adds,
"Probably as more vaccines start coming into the market next year, the
price of the vaccine may also come down due to competition."
Rasmus Beck
Hansen, Chief Executive of Airfinity, says, "In the meantime, we shouldn't
expect private companies either. Especially companies that are small and don't
sell any other product. So don't expect them to They will sell the vaccine
without thinking about the profits. "
He says, "It
has to be kept in mind that these companies have taken a big risk and they have
really moved forward."
He adds, "And
if you want these small companies to succeed in the future, then they need to
be rewarded in that way."
But some people
differ on the state of humanitarian crisis and public funding. According to
him, this is not the time of business as usual.
Should they share
their technology?
With so much at
stake right now, there is a demand that the entire technology and information
behind these vaccines should be shared so that companies in India and South
Africa, for example in other countries, have dosed vaccines. To make it in your
markets.
"This should
be a prerequisite for obtaining public funding," says Ellen T. Hoen of
Medicines Law and Policy.
She says,
"When the epidemic started, big pharma companies did not show much
enthusiasm about the vaccine. But when the government and agencies came forward
with the fund, they had to work on it."
"They don't
understand why they have the privilege to benefit from the results," says
Hoen.
She says,
"These new discoveries later become the personal property of these
commercial organizations."
Although people
are sharing some things with each other on an intellectual level, but these are
not enough in any case.
So Will Pharma
Companies Make Bumper Profits?
Governments and
multilateral organizations have already pledged to buy billions of doses at
fixed prices. In such a situation, for the next few months, companies will be
busy in fulfilling those orders as soon as possible.
People who are
selling vaccine doses to rich countries are also expecting returns on their
investment. Although AstraZeneca has to supply the most dosage, it will still
focus only on meeting the cost.
After the first
demand is supplied, it is difficult to predict what the situation will be about
the vaccine. Because it depends on many things. For example, those who have
been given a vaccine dose remain immune to the corona. How many vaccines are
successful and how smoothly the vaccine is manufactured and then distributed.
According to Emily
Fields of Barclays, "The opportunities to make profits will be 'very
temporary'."
Even though people
who are currently in the race to make vaccines and are not sharing their
intellectual property with others, despite this, 50 such vaccines are being
made worldwide which are undergoing clinical trials.
According to Emily
Fields, "There may be 20 vaccines in the market in the coming two years.
In such a situation it is becoming difficult to get a high price for the
vaccine."
She believes that
in the long run, this can have an impact on the company's reputation. If a
vaccine is successful, it can prove to be helpful in opening the door to sale
of Kovid treatment or other related products.
Hansen of
Airfinity says that if this happens, it can be a relief from the difficult
phase of the epidemic.
He expects
governments to say that governments should invest in strategizing in the
context of epidemics. Just like she is doing now for safety and security.
Among all these,
what is the most important and influential thing is that how did the market
price of Bio-N-Tech and Moderna suddenly go up. This is because their vaccines
prove their concept of RNA technology.
Prior to Kovid,
Bio En Tech had been working on a vaccine for skin cancer and on an RANE
vaccine for modern ovarian cancer. If any of it succeeds, it will be a huge
achievement.
