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Vaccines

Hypocrisy Exposed: Big Pharma's Patent Privileges Cause Global Vaccine Shortages

Strategic Insights

— 2 min read

Big pharmaceutical companies are opposing temporary suspensions of patents on COVID-19 vaccines and drugs, claiming that intellectual property rights are essential for innovations. However, developing countries are struggling to access affordable vaccines and drugs. The World Health Organization's patent pooling initiative, Covid-19 Technology Access Pool (C-TAP), has been dismissed by Big Pharma, supported by private capital and rich countries. Meanwhile, Canada has adapted its patent laws to issue compulsory licenses for Covid-19 vaccines and drugs, while acquiring five times more vaccines than needed for its population. Australia has also procured 150 million doses of Covid-19 vaccines, nearly six times its population size. The European Union continues to block the temporary TRIPS waiver, only changing its stance after AstraZeneca and Pfizer failed to meet their contractual obligations to deliver vaccines to EU countries.

Key Takeaways:

  • Big Pharma opposes temporary suspension of patents on COVID-19 vaccines and drugs, claiming intellectual property rights are essential for innovations.
  • Developing countries struggle to access affordable vaccines and drugs due to patent restrictions.
  • Canada and Australia have adapted their patent laws to issue compulsory licenses for Covid-19 vaccines and drugs, while acquiring more vaccines than needed for their populations.
  • The European Union continues to block the temporary TRIPS waiver, despite the EU's president, Ursula von der Leyen, speaking about "working together" and "solidarity" for the public good.
  • Investment bank Morgan Stanley expects nearly US$13 billion profit for Pfizer and BioNTech during the pandemic, while millions are dying unnecessarily.
  • Shareholder activists have filed resolutions asking Pfizer and Johnson & Johnson to disclose how public financial support for Covid-19 vaccine development is being taken into account when setting prices.
  • Governments have failed to require recipients of public or taxpayers' money to agree to offer their products at fair prices or share intellectual property rights.
  • Innovations can occur without patents; research has shown that industries can be exceptionally innovative without them.
  • Prizes, direct funding of research and development (R&D), and de-linking R&D costs from product prices are better ways to incentivize innovation.

Statistics:

  • Investment bank Morgan Stanley expects nearly US$13 billion profit for Pfizer and BioNTech during the pandemic.
  • AstraZeneca received more than APS84 million ($111 million) from the UK government, and more than $2 billion from the US and EU for Covid-19 vaccine research and purchase orders.
  • Pfizer received a $455 million German government grant and nearly $6 billion in US for its Covid-19 vaccine programme and EU purchase commitments.
  • The US administration provided US$10.5 billion to pharmaceutical companies for Covid-19 vaccine development.
  • Canada acquired five times more Covid-19 vaccines than needed for its population.
  • Australia procured 150 million doses of Covid-19 vaccines, nearly six times its population size.

Sources:

  • The Wall Street Journal
  • The US Chamber of Commerce Foundation
  • Morgan Stanley
  • The National Institute of Health (NIH)
  • The World Health Organization (WHO)
  • The European Commission (EC)
  • The South African government
  • The UK government
  • The US government
  • The Australian government
  • Canada's patent laws and government documents
  • Australia's patent laws and government documents

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