Sunday, 13 December 2020

Covid-19 Very Profitable For The Pharmaceutical Companies

Much praise has been heaped upon the pharmaceutical companies who have came up with the much needed Coronavirus vaccines but as arm sleeves begin to be rolled up around the World, those same pharmaceutical companies are rubbing their hands as they see a couple of extra zeros be added to their
bank balances.
At the start of the pandemic, the vaccine developers were in no rush to go on the quest for the vaccine or at least not until governments and donors such as The Gates Foundation and Alibaba's Jack Ma began pouring billions of pounds into projects to create and test them because creating vaccines is not very profitable for these companies.
In total, governments have provided £6.5bn, donors £1.5bn and £2.6bn has come from the companies own investment but if the vaccine is a one or two shot affair then they will make very little profit from it, if it hangs around and becomes an annual shot like the flu virus, then the companies profit sheets will be very rosy indeed.   
Moderna have orders for 780m doses at £23 a dose, Sinovac's orders book has 260m at £15 a time, Pfizer/BioNTech have 1.28 billion orders for their $14 a dose vaccine, Sanofi/GSK are charging £12 for each of the 1.23 billion doses they have on order, Novavax will get £12 for each of their 1.38 billion orders, £9 a time will go to Curevac for their 410 million doses, Johnson and Johnson will make £7 for each of the 1.27 billion doses they have on order, Sputnik V will get £7 for each and Oxford/AstraZeneca have 3.29 billion orders at £3 a time.
The Johnson & Johnson, Sputnik V and Oxford/AstraZeneca vaccine makers have promised that they will only sell them at the price it cost them to make it which give us a ballpark figure of just how much it costs, and how much the other companies are adding on for profit.
The first moral dilemma then is that during a global pandemic which has killed 1.6 million so far, some of the pharmaceutical companies first thought was can we make a profit from this and only once someone else funded it, did they take an interest and some such as Moderna and Pfizer/BioNTech are now looking to maximise their profit.
The second moral dilemma is that they developed the vaccine with what was essentially taxpayers money, in total £6.5 billion, but the innovations become the private property of these commercial organisations and the control over stays in the hands of the company, allowing them to keep the profits from the results.
So yes, we should be thankful for the scientists and medical teams who will hopefully end the Coronavirus, but then the same scientists and medical teams and their shareholders have profited very handsomely whilst doing it, thanks to us taxpayers.

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