Last week, Poland informed Pfizer about its decision to cancel its agreement for more vaccines. Reuters says. Hee hee. This one’s going to court, folks.
Poland has withdrawn from its contract commitments to Pfizer Covid vaccinations. This was due to oversupply, financial strains and the influx of Ukrainian refugees.
It acknowledges that its unilateral decision will result in a legal conflict with Pfizer https://t.co/Y97GFUqk4t
— Notes from Poland 🇵🇱 (@notesfrompoland) April 19, 2022
The contract in question—worth about $1.4 billion—is not directly between Pfizer and Poland; it is between the European Commission and vaccine manufacturers. Pfizer, Poland’s largest supplier, is not the reason for the contract. However, the outcome is the same. Poland does not want to pay or receive any additional doses.
Healthworld
“At the end of last week, we used the force majeure clause and informed both the European Commission and the main vaccine producer that we are refusing to take these vaccines at the moment and we are also refusing to pay,” Polish health minister Adam Niedzielski told private broadcaster TVN24.
The company cited the refugee crisis stemming from Russia’s invasion of Ukraine, as well an over-supply of the vaccine due to low vax rates in the country. Politico reports that Poland’s attempts at negotiations were met with the proverbial cold shoulder:
Niedzielski stated that the better pandemic conditions meant there was less vaccine need. The public’s finances were stretched by the Ukrainian refugee crisis. He added that the government had tried to reach a compromise, asking for deliveries to be staggered over the course of 10 years, but “we encountered a complete lack of flexibility on the part of the producers.”
I love that phrase, “We encountered a complete lack of flexibility on the part of the producers.” Meaning, Pfizer said, “Take a hike, Poland! We’ve got shareholders to answer to.” (You can see their point: Moderna stock is down 35 percent for the year, Pfizer almost 12 percent.)
“It’s a major financial burden,” Niedzielski lamented. “Poland is facing serious financial strains related to the influx of refugees.”
What’s next?
Pfizer should fight back. I can’t imagine them casually walking away from a $1.4 billion payday; that’s not the Pfizer we know and love. “Indeed, the consequence of this will be a legal conflict, which is already taking place,” Niedzielski admitted. It could be epic—a massive drug company facing off with the European Union. WWE fans, let’s get ready to rummmmmble!
Zwei, it could signal the beginning of something more. In many countries, there’s already an oversupply of the vaccines. Moderna CEO Stéphane Bancel said in a February interview with Yahoo! Finance:
For a while there was a supply constraint to a world where there’s too many vaccines today. I don’t if you saw yesterday, the Africa CDC announced that they were taking no more donations in Q1 or Q2 this year, maybe in Q3 and Q4, because we have too many vaccines.
He said that overproduction was caused by distribution issues, and not excess production.
Two years was needed to prepare for last-mile delivery. We also had time to train enough health workers, get fridges and other necessary equipment so that vaccine would be readily available in low income countries. Now we have a massive oversupply of vaccines. This includes Moderna. But then it’s the same for other companies.
Which other countries could be forced to terminate their contracts? With the waning effects of the boosters, and even Fauci admitting we’re almost past the “full-blown” pandemic phase of the coronavirus, and vast stockpiles of vax doses piling up in some places, one can only wonder which purchasers will develop buyer’s remorse.
Although it’s Pfizer who’s taking the hit in this particular story, Moderna’s already got a plan to keep the profits flowing. Bancel said:
We believe that the natural or weakened immunity to the vaccines will lead to the necessity for another dose of the vaccines in fall, as we stated on our call today.
A fourth dose, sure. For good measure, how about a fifth?
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