At the onset of the coronavirus epidemic, everyone was warned that vaccines could take years to develop. So let’s not expect to get anything too soon. However, only 10 months later, some countries have begun vaccinations against coronaviruses. And the names of the companies making these vaccines are now back in people’s mouths.
As a result, investment analysts are predicting that companies making at least two or three vaccines – Modern in the United States, Bioentech in Germany and a major US partner, are likely to make hundreds of billions of dollars next year. It is unknown at this time what he will do after leaving the post.
That being said, the way the vaccine is funded and the number of firms involved in the production process, the opportunity to make huge profits may not last very long.
Who funded the vaccine race?
Vaccines were urgently needed. Therefore governments and donors in various countries have poured billions of pounds into vaccine development and testing projects.
Donations such as the Gates Foundation have also contributed financially. Many have also paid in person, including American country music star Dolly Parton and Alibaba founder Jack Ma.
Airfinity, a company that analyzes scientific data, says governments have paid a total of $ 6.5 billion. In addition, non-profit organizations are paying around £ 1.5 billion.
The companies themselves have invested only ₹ 2.7 billion. However, many of them rely too much on outside funding.
Complex calculation of firms behind investing in Kovid vaccine
There are several reasons why large companies have not been in a hurry to invest in vaccine projects. As seen in the past, vaccination has not been very profitable, especially during emergencies. Because it takes a long time to invent this vaccine. Also, it is less likely that it will work. Large quantities of vaccines are provided in poor countries. But they do not have the financial means to pay the higher price.
In addition, vaccination is given only once or twice. On the other hand, medicines which are in high demand in rich countries and which have to be taken every day – there are plenty of opportunities to earn money from their production.
Companies that have started working on the Zika or SARS virus vaccine have burned their hands one at a time.
Flu vaccines, on the other hand, have a multi-billion dollar market every year. There are indications that Kovid-19 will remain on Earth like the flu for several days. To avoid this, a ‘booster’ vaccine should be taken year after year. This means that companies that can produce the most effective and cheapest vaccines will benefit the most.
What is the cost of vaccine companies?
Most companies – especially externally funded – do not want to show that they are profiting from the global crisis.
Johnson & Johnson, the largest US pharmaceutical company, and AstraZeneca, a UK-based biotech company based in Oxford, have promised to sell the vaccine at a price that will reduce their production costs.
AstraZeneca is now selling each vaccine for four dollars or three pounds – the cheapest coronavirus vaccine.
The price charged by a small biotechnology firm called Adhunik is very high – up to 36 per dose. Their goal is to make some profit for the shareholders of this firm. However, they must send the vaccine to various locations in very cold conditions and this cost is included in the vaccine price. However, this does not mean that the price of this vaccine has been fixed.
Pharmaceutical companies usually sell vaccines at different prices in different countries. It usually depends on the price at which governments can afford it.
AstraZeneca has vowed to keep vaccine prices low until there is an epidemic. This means that the price may go up next year. However, it depends on the direction of the epidemic.
Emily Field, head of European pharmaceutical research at Berkeley, says governments in rich countries will now pay more for vaccines. Because they want to buy whatever is available now to end the epidemic.
He says that when more vaccines come on the market later, the price will be reduced due to competition.
Airfinity chief executive Rasamus Bech Henson said it was better not to expect private firms – especially small ones that have no other option – to produce vaccines without making a profit.
The reason, he said, is that these companies have already taken a lot of risk. Worked fast and invested large sums in research and manufacturing. As a result, they require rewards for discovering new things in the future.
However, some argue that the crisis was so large and governments had spent so much money that it could not be called a normal trading time.
What technology should they exchange?
As the crisis was so severe, many called for adjusting the technical knowledge behind the vaccine so that other companies in countries such as India and South Africa could produce the vaccine for their own markets.
Ellen T., Director of Research for Medicine Law and Policy. “It should have been a condition of government money,” Hoon said. It was not sensible to give them this amount without any condition. ‘
He says that large pharmaceutical companies have not shown much interest in joining the race to invent vaccines for the first time. But when the government and various agencies came forward with funding resolutions, they started working. So why would they just benefit from the results of that research?
Ellen T. Those searches, says Hoon, have now become the personal property of some businesses. These companies are also in control over whether this knowledge will be passed on to anyone else. ‘
According to him, the exchange of intellectual property is not enough.
Will pharmaceutical companies make huge profits?
Governments and multinational corporations have already promised to buy millions of doses of the vaccine at a fixed price. So over the next few months companies will try to see how quickly these orders can be placed.
People who sell vaccines to rich countries will start benefiting from their investment. But even if companies like AstraZeneca agree to provide the highest dose of the vaccine, they will only be able to cover their costs. Nothing more than this.
According to earlier agreements, it is difficult to predict what will happen after vaccination.
It depends on many factors, such as how long the vaccine will last after vaccination, how successful the vaccine will be and how well the production and delivery system works.
Emily Field feels that the opportunity to make a profit will be very temporary.
Even if the first vaccine manufacturers did not exchange their intellectual resources, it should be remembered that more than 50 vaccines in the world are now in the clinical trial phase.
“It could be at least 20 vaccines in two years,” Emily Field said. Then it will be very difficult to increase the price. ‘
According to him, the reputation of the company can play a big role in the long run. Successful vaccines can pave the way for the sale of Kovid medicine or other ingredients. Looking at that, Rasmus Beck Henson of Airfinity feels that the entire industry can benefit. Perhaps this is the silver silver line of this epidemic crisis.
He thinks that governments can invest in epidemic control strategies in the same way that they now invest in defense.
RNA technology breakthrough
Another expectation is the way modern and bioentech prices have risen in the stock market – one of the reasons that they have found evidence of RNA technology in the tick they discovered.
As Emily Field said, everyone is impressed by its effectiveness. This can be a major change for the vaccine. “
Prior to Kovid, Bioentec was working on a vaccine for skin cancer. And is working to discover RNA-based vaccines for modern ovarian cancer. If any of these succeed – their achievement will be huge. Source: BBC Bangla