Factz

BREAKING

COVID Vax Makers Kept $1.4B in Prepayments for Canceled COVID Shots

COVID vaccine demand is on the wane, and the international health initiative responsible for vaccinating the poor people of the world (Gavi) is trying to negotiate its way out of deals with pharmaceutical companies.

Now that they no longer need the shots, they’re trying to recoup the billions of dollars they paid for shots that won’t be used.

However, multiple drug companies have so far refused to refund the $1.4B in advanced payments for now-canceled doses.

Gavi is a Geneva-based nongovernmental organization that uses funds from donors (including the US government, Bill Gates, and others) to provide immunization to low-income nations.

At the start of the COVID pandemic, they were tasked with buying COVID vaccines for developing nations, and they were funded with one of the world’s largest-ever mobilizations of humanitarian funding to do so.

They began negotiating with vaccine makers, but it wasn’t smooth sailing. Initially, drug makers iced Gavi out of the market, prioritizing countries with the money to pay more to lock in early doses of the vaccines.

However, they eventually reached a deal with nine drug companies. But those shots didn’t begin reaching developing nations until late 2021. At that point, the demand was waning just as Gavi’s supply was catching up to need.

The drug companies are facing harsh criticism for banking on something that was a vital humanitarian initiative. Still, so far, Gavi has only been able to reach settlements with Moderna, the Serum Institute of India, and several Chinese manufacturers to cancel unneeded doses, losing $700M in prepaid doses.

Novavax is refusing to refund another $700M in prepaid shots; it never delivered. And Gavi is going toe to toe with Johnson & Johnson over shots Gavi told the manufacturer months ago they would not need, but J&J produced anyway. They’re demanding an additional payment now for an undisclosed amount.



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