Shares of Covid-19 vaccine makers plunged after the US President Joe Biden backed a proposed waiver for intellectual property rights even as the pharmaceutical industry, analysts and experts doubted its impact, saying the real problem is a lack of raw material and knowhow.
Pfizer, Moderna, Novavax and US shares of BioNTech were down between 4% and 10% on Thursday. The slide in stocks was understandable, but likely an over-reaction, Zhiqiang Shu, senior biotechnology analyst at Berenberg in New York, said.
“The production of mRNA vaccines is not just about intellectual property. A lot of other things are in play, such as manufacturing knowhow and capacity. Other companies or countries are unlikely to produce mRNA shots quickly,” he said.
The Biden administration move drew applause from patent activists and the World Health Organisation as it could increase the availability of vaccines to poorer nations including India, which is under the grip of a deadly second wave of infection.
Published in The Express Tribune, May 7th, 2021.
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