US President Joe Biden recently gave his support to temporarily lifting vaccine patents so that the production of life-saving inoculations will be more feasible for poorer countries. However, the EU leaders have divided opinions over such a move. As per financial reports, Covid-19 vaccine producers such as Johnson & Johnson, Pfizer, Moderna, and AstraZeneca have witnessed a growth in their profits since the vaccines have rolled out in the markets.
Recently, the stocks of several companies which earn profits from the sales of Covid-19 vaccines witnessed a sudden fall on the news of Biden’s reversal. For example, Moderna stocks went down more than six percent at close. However, German chancellor Angela Merkel protested against patent waivers recently. This period also witnessed a slight recovery in the stocks.
The price fluctuations in the stock market have badly impacted drug producers in the short term. However, patent waivers would reduce the bottom line of those companies which will be involved in the production of Covid-19 vaccines in the long term. The Covid bump was smaller for pharma giants such Pfizer and Johnson and Johnson as they earn billions of dollars every quarter from diverse sources.
AstraZeneca earned more than double profits during the Covid year. On the other hand, last year, Moderna turned a Q1 loss into a profit. German company BioNTech also earned similar profits, while collaborating with Pfizer for preparing Covid vaccine.