You are browsing the Hong Kong website, Regulated by Hong Kong SFC (CE number: BJA907). Investment is risky and you must be cautious when entering the market.
Is the performance of manufacturers such as Pfizer dangerous?
uSMART盈立智投 05-20 21:34

After a year of trying to find an adequate supply of COVID-19 vaccines, stocks in some European countries are flooded with unusable vaccines, telling drug companies that they do not want to pay more. The performance of these vaccine manufacturers may be affected.

Health officials from three EU member states, including Poland, Slovakia, Romania, Bulgaria, Luxembourg, Finland, the Netherlands and the Baltic countries, met on Wednesday to discuss revising contracts with COVID-19 vaccine makers such as PFE.US because of oversupply and the rising cost of short-term vaccines.

In recent weeks, Polish Health Minister Adam Niedzielski organized the virtual meeting after some EU member states issued an appeal to the European Commission (European Commission), the EU's executive arm.

Some countries are seeking to revise so-called "advance purchase agreements" with manufacturers because of reduced demand for vaccines and pressure on government budgets due to the impact of the conflict between Russia and Ukraine and the cost of hosting refugees.

At the end of last month, the prime ministers of Estonia, Latvia and Lithuania jointly wrote to European Commission President Von de Lane, saying that the adjustment agreement with suppliers could give member states the right to "re-phase, suspend or completely cancel the delivery of vaccines with short shelf life".

The Bulgarian Ministry of Health said there was a need for an "open dialogue" with the European Commission and pharmaceutical companies on vaccine supply. Bulgaria has the lowest vaccination rate in the European Union.

European Commission promotes a large number of COVID-19 vaccine contracts

The European Commission took the lead in supplying vaccines to the European Union and other European countries, brokering deals with PFE.US / BioNTech and Moderna (MRNA.US) to ensure the provision of billions of doses of COVID-19 vaccine at the height of the epidemic. But many countries, including those with low vaccination rates, are now scrambling to cut costs because demand for vaccines has fallen.

Romania, one of the least vaccinated countries in the European Union, has begun to sell surplus vaccines to Germany and Hungary in the face of oversupply and shortage of stocks. Hungary did not participate in the latest round of joint purchases to reduce its own excess supply.

Poland triggered a force majeure clause last month after it failed to renegotiate agreements with suppliers and refused to pay for new supplies or additional vaccine doses.

The European Commission said on May 13th that it had reached an agreement with BioNTech and Pfizer to adjust the delivery schedule according to the situation of member states. The European Commission said vaccines originally scheduled for June and throughout the summer would now be shipped during September and autumn and winter, but no copies of the agreement were provided.

Both Pfizer and BioNTech say they are working with the committee to address the needs of the growing COVID-19 epidemic. BioNTech said Friday that the two companies could not comment on potential or ongoing discussions.

Efforts to change the terms of the agreement highlight how the 27-nation bloc has entered a new phase in the fight against the COVID-19 epidemic. Although demand began to decline just a year after countries scrambled for vaccine supplies, many EU member states are still far from meeting the 70 per cent vaccination target.

Covax, the global vaccine programme backed by the World Health Organisation (WHO), says it has sufficient doses of vaccine for countries to meet their vaccination targets, but delivery is slowing as the focus shifts from supply to overcoming distribution barriers, hesitation and other obstacles to promotion.

Follow us
Find us on Facebook, Twitter , Instagram, and YouTube or frequent updates on all things investing.Have a financial topic you would like to discuss? Head over to the uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app!
Disclaimers
uSmart Securities Limited (“uSmart”) is based on its internal research and public third party information in preparation of this article. Although uSmart uses its best endeavours to ensure the content of this article is accurate, uSmart does not guarantee the accuracy, timeliness or completeness of the information of this article and is not responsible for any views/opinions/comments in this article. Opinions, forecasts and estimations reflect uSmart’s assessment as of the date of this article and are subject to change. uSmart has no obligation to notify you or anyone of any such changes. You must make independent analysis and judgment on any matters involved in this article. uSmart and any directors, officers, employees or agents of uSmart will not be liable for any loss or damage suffered by any person in reliance on any representation or omission in the content of this article. The content of the article is for reference only and does not constitute any offer, solicitation, recommendation, opinion or guarantee of any securities, virtual assets, financial products or instruments. Regulatory authorities may restrict the trading of virtual asset-related ETFs to only investors who meet specified requirements. Any calculations or images in the article are for illustrative purposes only.
Investment involves risks and the value and income from securities may rise or fall. Past performance is not indicative of future performance. Please carefully consider your personal risk tolerance, and consult independent professional advice if necessary.
uSMART
Wealth Growth Made Easy
Open Account