The pharma sector’s relentless lobbying for a favourable policy environment globally has achieved massive proportions as the world reels under the severe impact of Covid-19. The reply to the state government of Punjab by Moderna expressing refusal to deal with the state government is a classic example of the pharma sector making hay while the masses die. In India, health is a state subject and the second wave of the virus has already put immense pressure on central and state agencies. Several state governments have already floated global tenders to procure vaccines and companies like Pfizer, Moderna and Johnson & Johnson were expected to pitch in. Unfortunately, India, despite being called the pharmacy of the world, is facing stiff resistance from the international lobby looking to sweeten the deal in troubled times. Encashing the misery of others is what these global MNC’s have mastered and are replicating their tactics with Modi Government.
The international pharma lobby ever since the outbreak of the virus has flexed its lobbying muscle to squeeze the maximum out of the situation. In many countries, they have already got away with it. Recent protests and campaign in the US focused on the proposal by India and South Africa at the World Trade Organization (WTO) to keep its Agreement on Trade-Related Aspects of IPRs, known as TRIPS, in abeyance till the pandemic is vanquished. As the Biden Administration considers a prudent course to wipe out the virus from the face of the earth, pharma lobbyists across the Democratic and Republican party are working overtime to scuttle any possibility of a deal. The reason being cited is the stifling of innovation that such waivers will result in. In general, that’s a valid argument unless you are fighting a once-in-a-century virus causing mayhem across the world and mutating quickly. God forbid if the mutations in future make the current vaccines ineffective, the developed world despite its vaccinated population will find itself in a fresh wave of trouble and pharma MNC’s may cheer at the prospect of more profits.
Meanwhile, Pfizer is already pressuring Latin American governments to change their laws to protect its vaccine against liability clauses. The crux of their concerns with the Modi government lies in the indemnity bond which they seek before supplying the vaccine. Pfizer has already indicated last month that they intend to supply vaccine only through government channels and the latest reply to Punjab by Moderna is a sign of things to come for various State Government tenders.
The impasse on indemnity bond isn’t an easy dilemma. Large Multinationals like Pfizer and Moderna have already breached the impasse in Western countries like the USA and UK and are vying for the same in India. A generous lobbying budget combined with desperate times ensures that government resistance withers away from the pressure. Modi government to date has not given any manufacturer of Covid-19 vaccine legal protection against costs of compensation for severe side effects. The indemnity bond which Pfizer seeks will enable Pfizer to sell vaccine without patients having the right to challenge them in the court of law. In essence, the Centre will be responsible for any adverse effect while these MNC’s reap the profits.
The Modi Government’s insistence on a local trial for vaccine approval is another area of concern. Given that Pfizer, Moderna and Johnson & Johnson vaccines are already in the mass market globally and proven safe outside of the lab environment, the Modi Government may consider doing away with a bridging trial. In doing so, the Modi government may repose faith in the fact that millions of people have already been inoculated in various parts of the world and are safe. Moreover, the fast track approvals which Modi government had pledged these Pharma MNC’s may come to nought unless the local trials are waived off. The Pharma MNC’s have a point when it comes to hesitation on conducting local trials of a vaccine already administered to millions.
In essence, the fate of global tenders floated by various state governments is going to be stuck in indemnity bond which the MNC’s seek. At present, only a small percentage of the Indian population is inoculated. State Government’s are facing an acute shortage of vaccines and millions of lives are at stake. Companies like Pfizer are already holding Latin American governments to ransom, interfering in their legislation and even demanding military bases as a guarantee. Pfizer made Argentina pass a new law that compensates them in case of future civil lawsuits. Unhappy with the phrasing of the law, they went ahead to arm-twist further seeking an amendment to the new decree and also demanded sovereign assets as collaterals apart from putting bank reserves, military bases and embassy buildings at stake. Brazil on the other hand was asked to create a guarantee fund and deposit money in a foreign account. Argentina meanwhile unhappy with the muscle-flexing didn’t concede to which Pfizer sought international insurance. As far as the US is concerned, the PREP Act gives total immunity to companies like Moderna and Pfizer. The MNC Pharma Lobby by declining State Government orders are seeking to arm-twist Modi government to sign the bond which will absolve themselves of any liability while Indian lives may be put at risk due to their negligence. However, the Modi government is no pushover and India has its own vaccine to fall back on. The Modi government is determined to use the existing ecosystems to expand production capacity and go full-throttle with the Indian vaccine. The International Pharma Lobby is mistaken if they are under the impression that the Modi government can be coerced to make laws that secure them. Indian lives are too precious and Modi Government will go the extra mile to protect its citizens by producing vaccines on its own than bow down to a lobby.
The writer is a BJP Spokesperson and Advisor to the former Chief Minister of Maharashtra Devendra Fadnavis. The views expressed are personal.
