Unusual Alliances
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.
Friendly Enemies
- 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.
Hooray!
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!
Mish
There is much that could be accomplished if everything wasn’t looked at as a zero sum game. Looking at the world through a zero sum lens actually makes it negative sum. When dealing with rivals, instead of shunning them or trying to hurt them, we need to go back to the “trust but verify” model.
Federal law prohibits employers and others from requiring vaccination with a Covid-19 Much remains unknown about the safety and efficacy of the vaccine
Much of this could only happen if government’s decided to look the other way on monopoly issues
Covid-19 vaccines made by China’s Sinopharm, CanSino release efficacy data
Transparency is an important issue. You have to show your data and have it picked over.
It’s good that Covid pushed companies to cooperate on producing and distributing the Covid vaccines. Who can be against that? That it portends a general trend towards cooperation more than competition within the Pharma Industry is far from being true. This could be a one-off event. The focus in my opinion is on the superiority of the US and UK systems whose companies, governments and financial markets are able to rapidly garner resources to produce vaccine results in an incredibly short time. Compare that to the problems the European Union had experienced and you see a big difference.
You forgot the Sputnik vaccine. I think I would rather take it than any of the crony-capitalistic ones.
I just heard that Lawrence Ferlinghetti has died. I guess I shouldn’t be surprised. He was a hundred and one.
Early days, though…
I agree it’s a good thing, but I question whether or not this is purely altruistic. I assume the companies are being paid for their efforts and what better way to learn what your competitors are doing than make their products for them?
They already know what each other is making in the same way Ford can buy a GM car and see what they are making.
It’s all about the patents so even if you know what they are making you can’t copy it because of the patents.
Indeed. To get a patent, they must disclose what it is, and how to make it. Incomplete disclosure voids the patent.
Too much of our system now has seemingly turned into a zero sum game, where there is always a winner and a loser in every transaction. I’m all for a little win/win.