5 ms·
Outside of publicity, I don't see this as having an enormous impact on profits. Companies will be compelled to produce the vaccine in any event, and will be com
by greenonions 6y ago
Outside of publicity, I don't see this as having an enormous impact on profits. Companies will be compelled to produce the vaccine in any event, and will be compensated, but I can't imagine governments would be purchasing the vaccine for any large markup.
- nickff 6y agoThe problem is that this is a money-losing proposition. If ten companies attempt to produce a vaccine, spending X, and two of them succeed (before the rest), with the government paying each double their development costs (2X), that means that the expected outcome of developing a vaccine is -0.6X. As a result, we should expect that most companies will only make a token effort.
- dharma1 6y agoI think it depends on the company, AstraZeneca CEO already said a while ago they will be manufacturing this at cost or near cost, this is a time for big pharma to give back. Some drug companies like Gilead though have very high markup, paid by the taxpayer. And some bioteh companies with mRNA vaccines in phase 1/2 trials like Moderna and Biontech, or protein treatment like Synairgen have seen share prices skyrocket. I guess the assumption is they will be collecting fees from the IP and/or future contracts for other drugs if this works out.