Covid vaccine makers’ shares seesaw after Biden administration says it will back patent waivers – CNBC

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Johnson & Johnson and AstraZeneca both use an adenovirus, a common type of virus that typically causes mild cold symptoms, in making their Covid vaccines. Shares of both of those companies were little changed Thursday.

President Joe Biden made a campaign promise last year to “absolutely, positively” waive vaccine patents. Waiving the patent protections could take months or even years.

Critics of the move say that developing countries don’t have the infrastructure available to manufacture the vaccines, but others disagree.

Analysts largely shrugged off the news.

“We believe any new manufacturing operation could take 6 to 9 months to scale, effectively limiting the impact of other producers. Thus, while we expect pressure on MRNA from the headlines, we do not see significant practical implications from this news,” analysts at Morgan Stanley said in a research note Thursday.

Analysts at Bank of America cited “barriers to vaccine development including sourcing raw materials, developing manufacturing and technical know-how.” They also note that “US support is not the same as approval where WTO decisions require consensus, and other members such as the EU, UK, Japan, and Switzerland currently oppose waiving IP.”

Angela Merkel, the chancellor of Germany, joined those countries Thursday in opposing the waivers. “The limiting factor in vaccine manufacturing is production capacity and high quality standards, not patents,” a spokeswoman for Merkel said in a statement.

European Commission President Ursula von der Leyen didn’t embrace the waiver plan, saying in a speech she is “ready to discuss any proposals that address the crisis in an effective and pragmatic manner.”

Both Pfizer and Moderna already have plans in motion to produce billions of doses in the meantime, essentially leaving any competitors far behind in the manufacturing process.

Source Article from https://www.cnbc.com/2021/05/06/covid-vaccine-makers-shares-seesaw-after-us-says-it-will-back-patent-waivers.html

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