Oxfam Scores Wins in Effort to Extract Pricing Information from J&J and Moderna

Strategic Insights -

Global advocacy organization Oxfam has secured two victories in its push to get pharmaceutical companies Johnson & Johnson and Moderna to reveal their COVID-19 vaccine pricing strategies and share vaccine technology. Ahead of their annual shareholder meetings, both companies will allow their investors to vote on Oxfam-backed proposals. The measures aim to address the global disparity in access to COVID-19 vaccines. As J&J and Moderna prepare to face shareholder scrutiny over their pricing and intellectual property policies, the company's revenues from COVID-19 vaccines have been substantial. J&J reported $2.39 billion in 2021, while Pfizer's revenue from the same period was a staggering $36.8 billion.

Key Takeaways:

  • Oxfam has secured a pair of wins in its effort to get J&J and Moderna to reveal their COVID-19 vaccine pricing strategies and share vaccine technology.
  • J&J shareholders will vote on an Oxfam proposal to force the company to release its COVID-19 vaccine pricing strategy at the company's annual meeting.
  • Moderna shareholders will vote on whether the company should study the feasibility of sharing vaccine technology to help increase global production.
  • In May 2021, the Biden administration backed a proposal at the World Trade Organization (WTO) to suspend intellectual property protections for COVID shots.
  • COVID vaccine sales have been adding up significantly, especially for Pfizer and Moderna.
  • Pfizer reported $36.8 billion in 2021 COVID-19 vaccine sales, while Moderna is expected to report substantial revenues on Thursday.
  • Oxfam's senior manager of private sector advocacy Robbie Silverman stated that the results 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."

Statistics:

  • 32% of J&J's shareholders voted for a similar resolution regarding COVID-19 vaccine pricing strategy last year.
  • $36.8 billion: Pfizer's reported 2021 COVID-19 vaccine sales.
  • $2.39 billion: J&J's 2021 COVID-19 vaccine sales.
  • 12 billion: The estimated number of COVID-19 vaccine doses produced worldwide in 2021.
  • 2021: The year in which the Biden administration backed a proposal to suspend intellectual property protections for COVID shots at the World Trade Organization (WTO).

Sources:

  • https://www.sec.gov/divisions/corpfin/cf-noaction/14a-8/2022/oxfamjohnson020722-14a8.pdf
  • https://www.oxfamamerica.org/press/press-releases/shareholder-resolutions-push-pfizer-moderna-and-johnson-johnson-to-address-covid-vaccine-inequality/
  • https://www.sec.gov/divisions/corpfin/cf-noaction/14a-8/2022/oxfammoderna020822-14a8.pdf
  • https://www.oxfamamerica.org/press/press-releases/shareholder-resolutions-push-pfizer-moderna-and-johnson-johnson-to-address-covid-vaccine-inequality/
  • https://www.fiercepharma.com/pharma/shareholders-to-push-for-detailed-covid-19-pricing-strategies-from-pfizer-j-j-and-merck-at
  • https://www.fiercepharma.com/pharma/biden-admin-backs-proposal-to-suspend-intellectual-property-rights-pandemic-vaccines
  • https://www.fiercepharma.com/pharma/cdc-review-today-green-light-expected-for-johnson-johnson-covid-19-vaccine
  • https://www.ifpma.org/resource-centre/as-covid-19-vaccine-output-estimated-to-reach-over-12-billion-by-year-end-and-24-billion-by-mid-2022-innovative-vaccine-manufacturers-renew-commitment-to-support-g20-efforts-to-address-remaining-barr/