The desperate need for Covid-19 vaccines has had an interesting side effect: Fierce Industry Competitors Are Now Pandemic Friends.
The production alliances are the latest example of industry rivals coming together to fight the pandemic, starting with research tie-ups.
“This is a time when the pharma companies are saying, ‘We’ll go back to fighting when this is over. We’ll take you to the cleaners and maybe drive you to bankruptcy, but right now we need to be working together,’” said James Bruno, who consults for drug companies.
- Sanofi SA (SNY) recently agreed to help make a vaccine from Pfizer Inc. (PFE) and its partner BioNTech SE (BNTX) after Sanofi’s experimental Covid-19 shot suffered a five-month setback, freeing up a production line in Frankfurt.
- Novartis AG (NVS) agreed to help Pfizer and BioNTech produce more doses.
- Baxter International Inc. (BAX) and Endo International (ENDP) have agreed to help Novavax Inc. (NVAX) produce its shot. to fight the pandemic, starting with research tie-ups.
- Pfizer, which has cancer drugs that compete with products from Sanofi and Novartis, and BioNTech brought on partners to help nearly double its 2021 production target to 2 billion doses.
- AstraZeneca (AZN) which has a vaccine authorized in the U.K. and several other countries, and Moderna (MRNA) have signed deals with contractors to make their shots.
These unusual alliances are a fantastic deal for science, consumers, and the companies involved.
Companies should try this win-win-win arrangement more often.
Gettin' Together is Better Than Ever
Readers might be wondering if I have an appropriate musical tribute. Indeed I do.
Thank You Tommy James and the Shondells.
Not Just Companies
It's not just companies. The UK and EU ought to try something similar and the same applies to the US, EU, and Iran.
Opportunities for better cooperation are endless!