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Pfizer says won’t make exception for India in its global approach for vaccine supply

Foreign vaccine suppliers want protection from potential lawsuits against adverse side effects, but analysts say India is in a better position to bargain now that the second wave is receding, domestic supply is rising and new vaccines are hitting the market

June 22, 2021 / 18:36 IST
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Pfizer remains committed to work with the government of India to bring its COVID-19 vaccine to the country, but its approach wouldn't change for India, the company said on June 22.

"Our frameworks in India are consistent with those anywhere in the world where our COVID-19 vaccine is being supplied," a Pfizer spokesperson told Moneycontrol.

"We continue to engage with the government to make our Pfizer-BioNTech vaccine available for use in the country. Since the ongoing discussions are confidential, we cannot provide any further comments,” the spokesperson added.

Pfizer and Moderna have been insisting on indemnity or a liability shield against potential lawsuits relating to vaccine-related adverse events.

Pfizer says countries it is supplying vaccines have agreed to indemnify it for civil-legal claims as part of the purchase pacts.

COVID-19 Vaccine

Frequently Asked Questions

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How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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India has not agreed to this so far, although it has been reported that it may grant indemnity.

Pfizer's statement comes amid ongoing negotiations between the company and the Indian government, which have gone on for months.

Any hints of Indian government extending indemnity to Pfizer, is met with similar demands from other vaccines makers including Serum Institute of India (SII) on the basis of equity.

Emails sent to Vinod K Paul, Member (Health), NITI Aayog and Rajesh Bhushan, Secretary, Health and Family Welfare went unanswered till the time of publishing this story.

Please read here on what is indemnity and why vaccine manufacturers are demanding it in supply contracts

Granting indemnity will mean that there will be a shift of liability from the manufacturer to the government. The government will have to create a compensation mechanism for individuals if there is a damaging side effect.

On Monday, Paul in an interview to CNBC-TV18 said that supply of Pfizer vaccine is subject to conditionality, alien to India.

"They conduct supply in a certain way. We have not seen this paradigm. The gap needs to be bridged," Paul said.

"We want even our own manufacturers to be protected, but if there are adverse reactions, there has to be a legal remedy," he added.

Paul said he hoped it was possible to have vaccines from Pfizer, Moderna COVID-19 in this year.

Change of circumstances

Analysts say signing a deal with Pfizer vaccine may be delayed as the government is hardening its position, as the COVID-19 second wave is receding, domestic manufacturers are gearing up for production, and new COVID-19 vaccines are expected to hit the market.

A section of the government also believes that Pfizer’s vaccine may lead to inequities in distribution, as the vaccine has to be stored at an extremely low temperature of -70 degrees Celsius, for which there is no facility in most of the country, barring a few metro cities.

"They are taking it slow; they want to give it more time, as they expect more supplies of Covishield, Covaxin, Sputnik V, and other vaccines," Ritika Ganju, Partner, Phoenix Legal.

Ganju says that Pfizer’s product is an effective vaccine to have in the arsenal, and India should plan for the third wave.

Viswanath Pilla
Viswanath Pilla is a business journalist with 14 years of reporting experience. Based in Mumbai, Pilla covers pharma, healthcare and infrastructure sectors for Moneycontrol.
first published: Jun 22, 2021 06:36 pm

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