Makers Keepers: What can we learn from listed vaccine makers
He begins by showing how “majority of vaccines didn’t cross borders:
- Pfizer-Biontech: 70% of revenue (>75% of doses) from US
- Moderna: 79% of revenue (86% of doses) from US
- AstraZeneca: 81% of revenue (82% of doses) from EU+UK
- J&J: 100% of revenue/doses from US
Anand says the guidance from these companies suggests even Q2 is not likely to see any pick up in vaccines supplies to the rest of the world but the second half holds promise.
“Production estimates for 2021:
- Pfizer-Biontech: 2.5-3 billion doses (1.6 billion contracted)
- Moderna: 0.8-1 billion doses
- AstraZeneca: no guidance
Whilst Anand is all for vaccine makers getting their RoI, he cites Astra Zeneca as an exception in terms of supplying majority of the affordable vaccines to poorer countries as part of the WHO’s COVAX initiative:
“…AstraZeneca is likely to forego pre-tax profit of nearly $10/dose on a few hundred million doses. No hollow pledge, this.
Doses delivered to COVAX initiative”
- Pfizer-Biontech: 1.2 million
- Moderna: Zero
- AstraZeneca: 18.4 million (sub-licensee Serum delivered another 29.9 million)
He concludes by recognising the efforts of the two Indian vaccine makers in providing affordable vaccine supply and why our best hopes remain pinned on them:
“…Serum has sold >200M vaccines to India at $2/dose and will sell even more at $4/dose. Thanks to Serum, India can buy over half a billion doses at a price lower than Moderna’s material cost. Serum has exported 3x more vaccines to developing countries than Big-3 combined (>60M vs 20M). As it scales from 70M doses/month to 100M doses/month, Serum will maintain its World #2 status.
….Bharat Biotech is equally commendable. Their May production run-rate (30M/month) nearly matches AstraZeneca’s and is 3-months behind Moderna’s ramp-up. At 70M doses/month, they’ll match Moderna in a few months. That they did it without an MNC collaborator makes it even more creditable. To have two Indian companies amidst global top-5 in a highly-specialized niche is a phenomenal achievement (and blessing).
There’s a vested narrative, painting Indian vaccine makers as a ‘profiteers’, with irresponsible threats of compulsory licensing and casual criticism of not doing more, better, sooner. While I don’t generally advocate vigilante justice, one tight slap is in order for such maleficence. India’s 2 billion doses/year run-rate in H2 2021 will be nearly as large as that of US and larger than that of EU. This is as good as it can get, amidst a global pandemic. Thank you, Bharat Ratnas.”