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Will pharmaceutical companies make huge profits from corona vaccines?

by Scienceooze

At the beginning of the epidemic, we were reminded that it could take years to develop a vaccine, so don’t expect it too soon.

But the vaccination is ready in just ten months, and the companies that make it are well known to us.

As a result, investment analysts predict that at least two of these pharmaceutical companies, the American biotechnology company Moderna and Germany’s biotech, can expect to make billions of dollars next year with their Pfizer. ۔

But it is unclear how much the vaccine makers will earn next.

Who invested the money?

Because of the urgent need for vaccines, various governments and donors have offered billions of dollars to develop. It supports charitable organizations such as the Gates Foundation and some people, including Alibaba founder Jack Ma and country music star Dolly Parton.

Governments have invested a total of 6.5 billion, while non-profit organizations have donated about 1.5 billion, according to AirFinality, a science data collection company,while Pharmaceutical companies have invested only 2.6 billion.

There is also an important reason why big companies have not been involved in funding vaccine projects because vaccines have not been more profitable in the past in emergencies.

The process of discovery takes time, and it isn’t easy to be very confident about it. Developing countries need large supplies but cannot afford high prices. Usually, the vaccine is used only once or twice. Medicines needed in rich countries, especially those that are needed daily, are a great way to earn money.

Companies that started working on the vaccina like Zika and SARS the companies didn’t earn money. On the other hand, the flu market is worth billions of dollars a year, and it shows that if Covid-19 remains, then the company that brought its effective and low-cost medicine to market. It can be profitable for him.

Vaccine Makers are changing different prices

Some companies do not want to see so much outside funding to benefit from the global crisis. Johnson & Johnson, a major US pharmaceutical company, and AstraZeneca, a UK-based biotech company based at Oxford University, say they will provide the vaccine only at their own expense. AstraZeneca currently looks the cheapest because it costs 4 US Dollars per dose.

Modern, a small biotechnology company, has been working on its invention RNA vaccine technology for years. He has set a price of 37 US Dollars for one dose, which is very expensive. The goal is to make some profit for your company’s partners (although a portion of the higher cost will also cover the cost of delivering these vaccines at extremely low temperatures).

However, this does not mean that the prices are fixed.

Pharmaceutical companies usually have different prices in different countries, and the reason is how much a country can afford.

AstraZeneca’s promise to keep prices low is only during the ‘epidemic period.’ Depending on the disease, its value may be an increase from next year.

According to Emily Field, head of European pharmaceutical research at Barclays.” Right now, the governments of the Developed countries will pay a high price because they are willing to do anything to end the epidemic,” 

He says as more vaccines emerge, prices may fall by next year due to increased competition.

“We shouldn’t expect small private companies, to make non-profit vaccines, especially when they don’t have other products to sell,” said Rasmus Beck Hansen, chief executive of AirFinality.

Rasmus said it should be borne in mind that these companies have taken significant risks, worked fast, and invested heavily in vaccine research and development.

Should they share their technology?

Because of the high risk, many say that vaccine development information should be shared so that companies in countries like Pakistan, India, and South Africa can develop vaccines for their people.

Ellen T. Hoven, director of research group Medicine Law and Policy, says this should have been a condition for obtaining government funding.

“I think it was unwise for our governments to provide so much funding without any preconditions,” he said.

At the start of the epidemic, she says, major pharmaceutical companies showed little interest in the race to develop vaccines. They began when governments and agencies promised financial support. Therefore, they do not think that these pharmaceutical companies have the right to make more profit.

Will pharmaceutical companies make huge profits from corona vaccines?

Governments and multilateral organizations have already promised to buy billions of doses of the vaccine at fixed prices, so pharmaceutical companies will be busy fulfilling these orders as soon as possible for the next few months.

Companies that sell their vaccines to rich countries will be rewarded for their investment. In contrast, a company like AstraZeneca says it will only provide the vaccine at its own cost, even though it is the largest company in preparing the vaccine.

After completing the previous agreements, it will be difficult to say what the future scenario will be like.

It will depend on a lot of things. For example, how long do vaccinators have immunity, how many successful vaccines are available, and are they being produced and distributed with ease?

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Barclays’ Emily Field thinks the time to make a profit will be ‘very temporary.’

Even if leading companies do not share their intellectual property with others, clinical trials of about 50 vaccines continue around the world.

“At least 20 vaccines could be available on the market in two years, so it will be difficult to get a higher price,” says Emily Field.

He believes that over time, that is likely to change. The arrival of a successful vaccine will open the door to covid-19 treatment and other related products.

Rasmus-Beck Hansen of AirFanty agrees that this would benefit the entire industry.

Another important reason for the increase in biotech and Moderna’s market value is that their vaccines have provided proof of their concept of RNA technology.

“Everyone appreciates its effectiveness,” says Emily Field. It could change the landscape of vaccine production.

Before Covid-19, Biotech worked on a skin cancer vaccine, while Moderna was working on an RNA-based vaccine for cervical cancer.

If any of them succeed, the rewards can be enormous.

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