Tag Archives: Global health crisis

U.S. backs giving poorer countries access to COVID-19 vaccine patents, reversing stance

By Andrea Shalal, Jeff Mason and David Lawder

WASHINGTON (Reuters) -President Joe Biden on Wednesday threw his support behind waiving intellectual property rights for COVID-19 vaccines, bowing to mounting pressure from Democratic lawmakers and more than 100 other countries, but angering pharmaceutical companies.

Biden voiced his support for a waiver – a sharp reversal of the previous U.S. position – in remarks to reporters, followed swiftly by a statement from his top trade negotiator, Katherine Tai, who backed negotiations at the World Trade Organization.

“This is a global health crisis, and the extraordinary circumstances of the COVID-19 pandemic call for extraordinary measures,” Tai said in a statement, amid growing concern that big outbreaks in India could allow the rise of vaccine-resistant strains of the deadly virus, undermining a global recovery.

Shares in vaccine makers Moderna Inc and Novavax Inc dropped several percent in regular trade, although Pfizer Inc stock fell only slightly.

The head of the World Health Organization, Tedros Adhanom Ghebreyesus, called Biden’s move a “MONUMENTAL MOMENT IN THE FIGHT AGAINST #COVID19” on Twitter, and said it reflected “the wisdom and moral leadership of the United States.”

Pharmaceutical companies working on vaccines have reported sharp revenue and profit gains during the crisis. The industry’s biggest lobby group warned that Biden’s unprecedented step would undermine the companies’ response to the pandemic and compromise safety.

One industry source said U.S. companies would fight to ensure any waiver agreed upon was as narrow and limited as possible.

Robert W. Baird analyst Brian Skorney said he believed the waiver discussion amounted to grandstanding by the Biden administration and would not kick off a major change in patent law.

“I’m skeptical that it would have any sort of broader long- term impact across the industry,” he said.

Biden backed a waiver during the 2020 presidential campaign in which he also promised to re-engage with the world after four years of contentious relations between former President Donald Trump and U.S. allies. Biden has come under intensifying pressure to share U.S. vaccine supply and technology to fight the virus around the globe.

His decision comes amid a devastating outbreak in India, which accounted for 46% of the new COVID-19 cases recorded worldwide last week, and signs that the outbreak is spreading to Nepal, Sri Lanka and other neighbors.

NEGOTIATIONS TO TAKE TIME

Wednesday’s statement paved the way for what could be months of negotiations to hammer out a specific waiver plan. WTO decisions require a consensus of all 164 members.

Tai cautioned deliberations would take time but that the United States would also continue to push for increased production and distribution of vaccines – and raw materials needed to make them – around the world.

The United States and several other countries previously blocked negotiations at the WTO about a proposal led by India and South Africa to waive protections for some patents and technology and boost vaccine production in developing countries.

Critics of the waiver say producing COVID-19 vaccines is complex and setting up production at new facilities would divert resources from efforts to boost production at existing sites.

They say that pharmaceutical companies in rich and developing countries have already reached more than 200 technology transfer agreements to expand delivery of COVID-19 vaccines, a sign the current system is working.

The WTO meets again on Thursday, but it was not immediately clear if the U.S. decision would sway other opponents, including the European Union and Britain.

The U.S. government poured billions of dollars into research and advance purchases for COVID-19 vaccines last year when the shots were still in the early stages of development and it was unclear which, if any, would prove to be safe and effective at protecting against the virus.

Wednesday’s move allows Washington to be responsive to the demands of the political left and developing countries, while using WTO negotiations to narrow the scope of the waiver, said one source familiar with the deliberations. It also buys time to boost vaccine supplies through more conventional means.

Dr. Amesh Adalja, senior scholar at the Johns Hopkins Center for Health Security, said such a patent waiver “amounts to the expropriation of the property of the pharmaceutical companies whose innovation and financial investments made the development of COVID-19 vaccines possible in the first place.”

But proponents say the pharmaceutical companies would suffer only minor losses because any waiver would be temporary – and they would still be able to sell follow-on shots that could be required for years to come.

Pfizer said on Tuesday it expects COVID-19 vaccine sales of at least $26 billion this year and that demand for the shots from governments around the world fighting to halt the pandemic could contribute to its growth for years to come.

(Reporting by Andrea Shalal, Jeff Mason and David Lawder; Additional reporting by Steve Holland, Michael Erman, Patricia Zengerle and Stephanie Nebehay; Editing by Peter Cooney)

Trump says coronavirus risk in U.S. is low; CDC confirms first case of unknown origin

By Jeff Mason and Jonathan Allen

WASHINGTON/NEW YORK (Reuters) – President Donald Trump told Americans on Wednesday that the risk from coronavirus remained “very low,” and placed Vice President Mike Pence in charge of the U.S. response to the looming global health crisis.

At a White House briefing, Trump defended his administration’s handling of the crisis and said health experts were “ready, willing and able” to move quickly if the virus spreads.

Trump made his comments as public health officials warned Americans to prepare for more coronavirus cases. The Centers for Disease Control and Prevention confirmed an infection of the new coronavirus in California in someone who had not traveled outside the United States or been exposed to a person known to have the virus, a first for the country.

How the person was infected was not known. It brought the total number of cases in the United States to 15, according to the CDC.

New York Mayor Bill de Blasio called on the government to help the city obtain 300,000 extra protective masks. There were no confirmed cases in the city but de Blasio announced plans to provide up to 1,200 hospital beds if needed.

U.S. stock markets fell for the fifth consecutive day on investors’ alarm about the respiratory disease spreading.

At the White House, Trump said he was not ready to institute new travel restrictions for countries such as South Korea and Italy that are dealing with outbreaks – although he could not rule it out. The State Department raised its travel alert level for South Korea and urged Americans to reconsider going there.

The CDC has advised Americans to not visit China and South Korea, and on Wednesday stepped up travel warnings for Iran, Italy and Mongolia.

“The risk to the American people remains very low,” Trump said, flanked by Pence and public health officials.

He said the spread of the virus in the United States was not “inevitable” and then went on to say: “It probably will, it possibly will. It could be at a very small level, or it could be at a larger level. Whatever happens we’re totally prepared.”

Dr. Anthony Fauci, the head of the National Institute of Allergy and Infections Diseases, said that while the virus was contained in the United States, Americans must prepare for a potential outbreak as transmissions spread outside of China.

U.S. Health and Human Services Secretary Alex Azar said the United States has 59 coronavirus cases, including 42 American passengers repatriated from the Diamond Princess cruise ship docked in Japan.

‘POSSIBILITY OF PANDEMIC’

“We have to be alert to the possibility of a pandemic,” Peter Marks, director of the Food and Drug Administration’s Center for Biologics Evaluation and Research, said in an interview.

House of Representatives Speaker Nancy Pelosi, a Democrat, said in a statement that the Trump administration “has mounted an opaque and chaotic response to this outbreak.”

She said the House would put forward a “funding package with transparency and accountability that fully addresses the scale and seriousness of this public health crisis.”

Trump is seeking $2.5 billion from Congress to boost the government’s virus response, an amount Democrats said falls far short of what is needed. Senate Democratic Leader Chuck Schumer called for $8.5 billion to prepare.

Global stock markets have slumped in recent days due to worries over a prolonged disruption to supply chains and economies from the virus, which has infected about 80,000 people and killed nearly 3,000, mostly in China.

U.S. stocks turned lower in afternoon trading – the S&P 500 index fell for a fifth straight day and the Dow Jones Industrial Average <.DJI> ended down 123.77 points, or 0.46%. [.N]

Trump, who is running for a second term in the November election, has been increasingly alarmed by the drop in U.S. stock markets, which he considers a barometer of the health of the American economy and sees as important to his re-election.

He told reporters at the White House that fears of the coronavirus had hurt the stock markets. But he also blamed the Democratic presidential candidates for spooking investors.

“I think the financial markets are very upset when they look at the Democrat candidates standing on that stage making fools out of themselves,” Trump said in reference to debates among the Democratic contenders vying for the right to challenge him.

Earlier in the day, Trump accused two cable TV news channels, CNN and MSNBC, of presenting the danger from the virus in as bad a light as possible and upsetting financial markets.

(Reporting by Jeff Mason and Jonathan Allen; additional reporting by Steve Holland, Makini Brice, Susan Heavey and Michael Erman; Writing by John Whitesides and Alistair Bell; Editing by Jonathan Oatis, Bill Berkrot and Grant McCool)