Deliveries of Pfizer Inc. ‘s Covid-19 vaccine to South Africa was delayed by the demands of the American drug manufacturer to determine the guarantees needed to indemnify the company from any negative consequences of the shots.
The government resisted the situation and Pfizer eventually backed down and agreed to supply 30 million doses of the vaccine with German BioNTech SE.
“This condition poses a potential risk to our assets and treasury,” Finance Minister Zweli Mkhize said in an April 14 information document submitted to Parliament’s Health Committee and reviewed by Bloomberg. “Pfizer has finally conceded that it has removed this problematic term.”
South Africa, which has yet to launch a broad-based deployment of Covid-19 vaccines, has complained about the terms and conditions imposed by Pfizer and Johnson & Johnson to secure supplies. Both companies have conducted vaccination trials in the country.
Click here for more information on the disagreement with J&J
“As a government, we have been in a difficult position to choose between saving our citizens and the risk of putting the country’s assets in the hands of private companies,” he said.
South Africa is the establishment of a fund without compensation for the compensation of complaints about the vaccines.
“Pfizer seeks indemnity and liability protection in all our agreements that comply with applicable local laws,” the company said, adding that the terms of the agreement are confidential. “Indemnity clauses are often included in contracts with governments for the provision of vaccines during public health emergencies.”
Mkhize also said that supply agreements for $ 10 per dose with both companies are non-refundable. Pfizer’s vaccine uses a two-dose regimen, while Johnson & Johnson requires only one dose. Earlier plans to use the vaccine of AstraZeneca Plc were abandoned after tests showed that it was less effective against a virus variant first identified in South Africa.
The Bureau of Investigative Journalism reported earlier on the claims.
(Updates with the setback of AstraZeneca in the last last paragraph)