Pfizer Inc is about to strike a deal with the US government to supply tens of millions of additional doses of the COVID-19 vaccine next year, according to new reports.
In return, the drug company will have greater access to the manufacturing supplies needed to make the vaccine under a government directive, the New York Times revealed.
The deal could be announced as early as Wednesday and help the US cope with an impending shortage of vaccine doses for US adults.
Although Pfizer and Moderna have both received federal approval for emergency distribution of their vaccines, they will only be able to produce a limited number of vaccines over the next six months.
This could allow 110 million American adults to remain unsecured through mid-2021.
Pfzier reportedly close to new deal with US government to deliver 100 million doses of vaccine between April and June 2021 in exchange for increased access to supplies
The Times claims that under the new deal with Pfizer, the U.S. government is pushing for an additional 100 million doses to be delivered between April and June 2021.
The company itself has suggested it could produce at least 70 million additional doses if it has access to more supplies and raw materials.
The new deal would allow the government to enforce the defense production law to give Pfizer access to the nine specialty products it needs to create a vaccine dose.
Since September, Pfizer has been urging the federal government for assistance in gaining better access to the supplies.
Still, no deal was reached because the Trump administration worked more closely with Moderna and other vaccine development companies.
The Times reports that company officials approached General Gustave F. Perna, the chief operating officer of Operation Warp Speed, to seek help at the end of the summer and continued to highlight their lack of supplies at weekly meetings.
Pfizer was disadvantaged in the production of vaccines in the US because other companies received preferential treatment from the government’s Operation Warp Speed.
Alex Azar, Secretary of Health and Human Services, receives his first dose of the COVID-19 vaccine. He allegedly complained that Pfizer was not cooperating in negotiating a deal
The company did not receive federal grants for vaccine development or manufacturing, like the other five companies in the Operation Warp Speed program.
These companies included Sanofi and Novavax, which have yet to begin large-scale clinical trials in the US.
General Perna would have wanted to protect Operation Warp Speed’s investment in these companies rather than giving more support to Pfizer when they were looking for help.
However, a senior Trump administration official told the Times that Pfizer had not received the help because the company refused to promise that the doses they created would be used solely for vaccinating Americans.
“It is our obligation under that sort of priority review to ensure that assets are only used for sale or production in the US,” the official said, “and they were not willing to do that.”
The company has also had a troubled relationship with President Donald Trump, who accused them of holding back a vaccination notice until after the election so it would work against him.
Trump had appointed Pfizer’s CEO, Dr. Albert Bourla, praised for saying a vaccine could be available by October, but blamed the firm for his election loss when the announcement was late.
Alex M. Azar II, the health and human services secretary, is also alleged to have complained that Pfizer did not cooperate with them and negotiate a deal.
He claimed in a CNBC interview last week that he and his department were willing to work with Pfizer “if they are willing to take our help.”
The relationship deteriorated further on Friday when it turned out that Pfizer charged the US more per dose than countries in the European Union.
A health worker preparing the Pfizer Covid-19 vaccine. The US government signed an agreement with Pfizer in July, which promised 100 million doses of its vaccine by the end of March
Last month, the company sold the EU 200 million doses for $ 14.50 each, while the Trump administration contract asked for $ 19.50 per dose.
Pfizer said prices were tiered based on volume and delivery dates.
A source told the Times that Pfizer would be in a better position to develop more vaccines for the US if a deal was reached with the federal government when the company first asked for help in September.
“The last thing we want this to be bitter,” Dr. Walid F. Gellad, who heads the Center for Pharmaceutical Policy and Prescribing at the University of Pittsburgh, told the Times.
“This kind of biting back and forth doesn’t help the audience feel better about what’s going to happen in the future.”
However, Pfizer is now in a better position to strike a deal after it became the first vaccine to receive FDA emergency use approval in the country.
This benefit could be eroded if other vaccines come through and get approval.
Johnson & Johnson is expected to announce the results of its clinical trials next month, while a fourth vaccine from AstraZeneca has also begun to announce interim results.
The pressure on the government to get more doses is mounting as the number of cases, hospitalizations and deaths continues to rise across the country.
The past week was the deadliest pandemic to date with more than 18,000 COVID-19 deaths, equating to one death every 33 seconds.
The number of deaths from the coronavirus rose to record highs in December with the nationwide seven-day average now at over 2,600.
Just 21 days in the month, December has already recorded 50,996 deaths. It is just shy of the 52,200 deaths recorded during the entire month of April.
And health officials fear the death toll won’t increase until after the holidays.
Hospitals across the country are already occupied, and officials say an increase in new infections from meetings and travel could affect them.
The US registered 190,519 new cases on Monday, and a record 115,351 people are currently in hospital with the virus.
Although the country has begun to administer two new vaccines, it could take months for the vaccinations to put a dent in the COVID-19 outbreak.
As it stands, Pfizer has made commitments to deliver vaccine doses to other countries that got to them faster than the US.
Company officials urged the Trump administration to continue securing the doses, but failed to lock them up, claiming Pfizer would not commit to delivery dates.
The US government did sign an agreement with Pfizer in July, which promised the country 100 million doses of its vaccine by the end of March.
Moderna has the same deal, as well as an additional pledge to deliver an additional 100 million doses between April and June.
But since both vaccines require two doses, that means only 150 million Americans who are eligible for the vaccine will receive one dose.
Current guidelines state that Americans over the age of 18 can receive the Moderna vaccine, while Pfizer’s dose is limited to those ages 16 and over.
That would leave 110 million people without a vaccine if a new Pfizer deal is not announced.
Even if the deal is reached this week, Pfizer’s additional 100 million naps will still leave 60 million Americans without a vaccine.
Nationwide, more than 18.1 million Americans have been infected with the coronavirus and 321,698 have been killed.