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HHS finally released Pfizer's $1.95 billion coronavirus vaccine contract for Operation Warp Speed, and it's pretty different from the others. Let's take a look at the fine print and how it compares. https://www.npr.org/sections/health-shots/2020/11/24/938591815/pfizers-coronavirus-vaccine-supply-contract-excludes-many-taxpayer-protections 1/
The company has tried to distance itself from Operation Warp Speed, but it's worth noting that this IS a Warp Speed contract, awarded through the same third party that handled coronavirus vaccine contracts for Johnson & Johnson, Novavax, and Sanofi. https://www.npr.org/sections/health-shots/2020/09/29/917899357/how-operation-warp-speeds-big-vaccine-contracts-could-stay-secret 2/
That third party uses a non-traditional federal contracting mechanism called an Other Transaction Agreement, which can leave out some customary taxpayer protections. The arrangements worried advocacy groups and members of Congress. https://www.npr.org/sections/health-shots/2020/10/10/922617939/call-for-administrations-covid-19-vaccine-contracts-to-be-disclosed 3/
Several of these contracts have become public in the last few weeks, showing that they lack or weaken customary IP rights, lessening the government's leverage if the manufacturers engage in price gouging down the road. 4/
For example, J&J's Warp Speed contract doesn't have standard march-in rights. Instead, the contract allows a much narrower window for the gov't to step in, excluding when COVID-19 stops being a public health emergency & becomes endemic, as is expected. https://www.npr.org/sections/health-shots/2020/11/08/932793698/hhs-released-more-coronavirus-vaccine-contracts-as-election-results-unfolded 5/
Pfizer's contract goes even further, explicitly stating that the government has no right to "march in" at all. It also leaves out other IP rights, arguing the U.S. gov't isn't entitled to them since this isn't an R&D deal. If the vax isn't approved, Pfizer doesn't get paid. /6
"This is not paying somebody to run down to Safeway to buy coffee for the office," @jamie_love says. "This is a really big contract. & when the dollar numbers r this big, I think people legitimately want to ask whether the government's protected their interests sufficiently." 7/
There's also a contradiction: Although the contract says government funds won't be used for research and development, it also says that Pfizer will get to keep any technology it develops as part of the agreement -- and that those inventions will become trade secrets. 8/
That could have ripple effects beyond the pandemic. "Instead of the normal quid pro quo—the government funds it but society eventually gets the benefit of the invention—the company can keep the information secret forever," says @ProfRobnFeldman. 9/
For its part, HHS says that it did its homework and negotiated "aggressively." It had a lot to balance. "The most critical factor was the need to obtain as quickly as possible sufficient doses of safe and effective vaccines against COVID-19 to save lives." 10/
