The European Commission and Pfizer have reached an agreement to reduce the amount of Covid-19 vaccines supplied to the EU, resolving tensions between most member states over payment for vaccines that may not be used.
After months of negotiations, 24 member states signed the revised contract. Poland and Hungary did not support the new agreement, while Romania is expected to sign it next week. Opponents complain that it’s not a good use of tight health-care budgets now that the threat of Covid-19 is waning.
U.S. pharmaceutical company Pfizer sold the vaccine it was developing with Germany’s BioNTech for about $19 a dose under a contract signed in 2021, but the new price was not disclosed.
The latest proposal includes a new rule that member states pay half the price, about 10 euros, for each dose of vaccine that is canceled, according to people familiar with the matter. It also proposes that annual deliveries should total 70 million by 2026.
strakiriakidesThe EU health and food safety commissioner welcomed the new agreement, which also allows countries to delay the delivery of some vaccines by up to four years.
“We have controlled the pandemic mainly through vaccines and vaccinations. While Covid-19 is no longer a global health emergency, it remains a threat that is likely to persist. It is therefore critical that we prepare for the years ahead ,”she says.
The original deal was signed in 2021, at a time when the world was grappling with vaccine shortages and the EU became concerned about delays in deliveries from Oxford/AstraZeneca and other suppliers.
Last year, the European Attorney’s Office confirmed it had opened an investigation into the Commission’s procurement of Covid-19 vaccines. But it did not disclose further details. It did not immediately respond to a request for comment on whether the investigation was still ongoing.
Pfizer and BioNTech said the revised agreement “reflects the companies’ commitment to working together to help address ongoing public health needs, while respecting the principles of the original agreement.”
The partners added that the commission will continue to have access to a Covid vaccine for any future variants and has the ability to donate vaccines to non-EU countries.
Sales of Covid-19 vaccines have been falling as governments work through existing supplies and contracts, and fewer people are receiving the annual booster.
But the revised size of Pfizer and BioNTech’s deal still leaves little room for rivals in the EU, according to health officials and analysts, leaving the bloc largely reliant on a single vaccine, which they say a series of shots is essential for. It is important to hedge against any resurgence of the virus, or the emergence of new variants.