Read on Twitter
Thread on vaccine profits 
There’s been some speculation from Wall Street about big potential profits for Pfizer and BioNTech from their Covid vaccine…1/ https://www.theguardian.com/business/2020/nov/10/pfizer-and-biontech-could-make-13bn-from-coronavirus-vaccine
There’s been some speculation from Wall Street about big potential profits for Pfizer and BioNTech from their Covid vaccine…1/ https://www.theguardian.com/business/2020/nov/10/pfizer-and-biontech-could-make-13bn-from-coronavirus-vaccine
…their share prices were up more sharply than other pharma companies this week, seeming to suggest investors agree.
Pfizer’s market cap rose by $15bn and BioNTech’s by $4bn on Monday...2/
Pfizer’s market cap rose by $15bn and BioNTech’s by $4bn on Monday...2/
…bear in mind that Pfizer, unlike several other big global pharma companies, said from the outset that it would aim for a profit on its vaccine rather than charging for it only at the cost of production…3/
...What to make of all this?
Seems to me that the economic argument in favour of Covid vaccine profits is that firms invested their own time & capital in the research and have a right to a return on that - and that profits encourage future socially beneficial investment…4/
Seems to me that the economic argument in favour of Covid vaccine profits is that firms invested their own time & capital in the research and have a right to a return on that - and that profits encourage future socially beneficial investment…4/
…The economic argument against big Covid vaccine profits is that many of these vaccines research projects have been sponsored by governments with public money, so big profits for vaccine makers would mean the public effectively paying twice…5/
…Pfizer says it took no money from the US government and invested $2bn of its own money into the research – Yet it did accept a $2bn pre-order from the government (& an order from the UK government) – which some argue “de-risked” their investment…6/ https://edition.cnn.com/2020/11/10/politics/fact-check-pfizer-warp-speed-pence/index.html
…moreover, BioNTech DID take $375m money directly from the German government and a $100m loan from the European Investment Bank…7/ https://uk.reuters.com/article/health-coronavirus-germany-vaccine/biontech-wins-445-million-german-grant-for-covid-19-vaccine-idUSKBN2661KP https://www.eib.org/en/press/all/2020-144-eib-to-provide-biontech-with-up-to-eur-100-million-in-debt-financing-for-covid-19-vaccine-development-and-manufacturing
…This is not, I would argue clear cut.
The judgement could hinge on the extent to which the key research that led to the breakthrough was the result of work by Pfizer or BioNTech…8/
The judgement could hinge on the extent to which the key research that led to the breakthrough was the result of work by Pfizer or BioNTech…8/
…And how much would the profit flow from Pfizer’s PREVIOUS investments in manufacturing capability and logistics network?...
We don't know the answers to these questions at the moment...9/
We don't know the answers to these questions at the moment...9/
…And the pricing is important too. It seems Pfizer is charging the US government around $20 a dose, which some experts think is “not extortionate”.
But we don’t know what they are charging the UK and the EU for their orders - that information hasn’t been disclosed...10/
But we don’t know what they are charging the UK and the EU for their orders - that information hasn’t been disclosed...10/
...Did those dose price negotiations with governments factor in public support? Was there discussion about socially acceptable profit margins?
Again, it would be very useful to know...11/
Again, it would be very useful to know...11/
…It’s early days of course – this vaccine hasn’t even been approved by regulators yet.
And other pharma companies may yet have breakthroughs in the coming weeks, diminishing Pfizer/BioNTechs’ profit opportunity…12/
And other pharma companies may yet have breakthroughs in the coming weeks, diminishing Pfizer/BioNTechs’ profit opportunity…12/
…Yet it’s still worth engaging with the question of whether these profits would be justified or whether they would represent a form of pandemic profiteering…
The backlash, it's perceived to be the latter, could be considerable...
13/
The backlash, it's perceived to be the latter, could be considerable...
13/
