Tag Archives: COVID-19 and economy

Begging for a Vaccine: the other COVID crisis

On April 16, 2021  Adar Poonawalla, head of the world’s biggest vaccine-maker, the Serum Institute of India (SII), begged President Joe Biden, in a tweet, to ‘lift the embargo of raw material exports out of the us.’… because it would affect the manufacturing of vaccines: AstraZeneca’s, of which SII makes 100m doses a month, and Novavax’s, of which it expects to make 60m-70m doses a month.

That was shortly after the Biden administration announced, on February 5, 2021, plans to use the Defense Production Act (DPA)—a law dating from the 1950s that grants the president broad industrial-mobilization powers—to bolster US vaccine-making. This legislation…has helped American pharmaceutical companies to secure a variety of special materials and equipment, including plastic tubing, raw goods, filters and even paper, that are needed for vaccine production. But firms which export such products point out that the DPA  hinders their ability to sell them abroad. They must seek permission before exporting these goods. That requires time and paperwork. And if the government decides it needs the goods in question to remain in the country, the firms concerned may be barred from exporting them at all… 

To be used in vaccine manufacturing, products have to be approved by regulators. So finding substitutes quickly can be impossible. SII is not alone in its concern. On March 24, 2021  Micheal Martin, Ireland’s prime minister, warned that export bans (and not just from America) would harm global vaccine production. He noted that the Pfizer vaccine involves 280 components from 86 suppliers in 19 countries. Indeed, American export controls particularly harm European vaccine companies, which need special bags from America in which to make their products. At a vaccine supply-chain meeting in March, one such firm complained of 66-week delivery times for the supply of these bags.

Excerpts from A Vaxxing Problem: Covid 19 and the Defense Production Act, Economist, Apr. 24, 2021

Severe Damage to Beliefs Lasting a Lifetime: covid-19

According to a new study  “Scarring Body and Mind: The Long-Term Belief-Scarring
Effects of COVID-19
” the largest economic cost of the COVID-19 pandemic could arise from changes in behavior long after the immediate health crisis is resolved. A potential source of such a long-lived change is scarring of beliefs, a persistent change in the perceived probability of an extreme, negative shock in the future. Even if a vaccine cures everyone in a year, the COVID-19 crisis will leave its mark on the US economy for many years to come because of the mass revision of beliefs that lasts through a lifetime. Even before the COVID-19 pandemic, people were aware of the disruptive impacts that a pandemic could theoretically have on their lives and the economy. But the tangible, persistent and severe harms associated with an actual pandemic change beliefs about the probability of another similar shock in ways that abstract knowledge cannot.

Excerpts from Free Exchange: Razing Hopes, Economist, Aug. 29, 2020 [adapted]

Everyone for Themselves: COVID-19 Drug Reserved for U.S.

On June 29, 2020 the US Department of Health and Human Services (HHS) announced an agreement to secure large supplies of the drug remdesivir for the United States from Gilead Sciences through September, allowing American hospitals to purchase the drug in amounts allocated by HHS and state health departments….HHS has secured more than 500,000 treatment courses of the drug for American hospitals through September. This represents 100% of Gilead’s projected production for July (94,200 treatment courses), 90% of production in August (174,900 treatment courses), and 90% of production in September (232,800 treatment courses), in addition to an allocation for clinical trials. A treatment course of remdesivir is, on average, 6.25 vials.

Hospitals will receive the product shipped by AmerisourceBergen and will pay no more than Gilead’s Wholesale Acquisition Price (WAC), which amounts to approximately $3,200 per treatment course.

Excerpts from Trump Administration Secures New Supplies of Remdesivir for the United States, June 29, 2020