Tag Archives: covid-19 vaccines

A Gun to their Head: the Exclusive Vaccine Club

International tensions over access to Covid-19 vaccines have intensified as supply hiccups disrupt mass rollouts of shots. But trade experts warn that restrictions on vaccine exports risk making a bad situation worse. That’s because the world’s major vaccine producers rely on each other for the essential ingredients to manufacture vaccines through a web of cross-border supply chains in complex chemicals, fatty acids and glass vials. If governments restrict vaccine exports, they risk retaliation from other members of this exclusive club of vaccine makers, who could withhold vital supplies, squeezing production just when it is needed most.

These supply chains stretch across the world, drawing in producers of basic chemicals that provide critical ingredients as well as the pharmaceutical powerhouses that make the vaccines. The  U.S. , the  European Union  and  China  are among a handful of territories that produce vaccine ingredients and final vaccines for the entire world. More than half of global vaccines and of key vaccine ingredients come from the  U.S.  and  EU . These 12 countries and the EU make up the “Vaccine Club”—producers that make both the key ingredients as well as final vaccines

The members of the vaccine club, though, source on average 88.3% of the imported ingredients used in vaccine production from other club members, according to economists led by Simon Evenett, professor of international trade and economic development at the University of St. Gallen in Switzerland, who have mapped trade flows between the world’s major vaccine producers. Limiting vaccine exports to another major producer would therefore risk retaliatory action that could undermine production, threatening the mass vaccination drives that are the key to ending the pandemic, Prof. Evenett said. “Everyone has a gun to each other’s heads,” he said.

Excerpts from The Covid-19 Vaccine Club: How the World’s Biggest Producers Depend on Each Other, WSJ, May 1, 2021

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