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Not a pretty picture: Canada and a patent rights waiver for COVID-19 vaccines

At about 7:15 am PT this morning , May 13, 2021, I saw Dr. Mona Nemer’s (Canada’s Chief Science Advisor) tweet (Note: I’m sorry the formatting isn’t better,

Maryse de la Giroday@frogheart Does this mean Canada will support a waiver on patent rights for COVID-19 vaccines?

7:18 AM · May 13, 2021

Dr. Mona Nemer@ChiefSciCanThe global health crisis of the past year has underscored the critical importance of openly sharing scientific information. We are one step closer to making #openscience a reality around the world. So pleased that my office was part of these discussions. http://webcast.unesco.org/events/2021-05-OS-IGM/ Quote Tweet

Canada at UNESCO@Canada2UNESCO · May 6@Canada2UNESCO is partaking in negotiations today on the draft recommendation on #OpenScience The benefits of #science and #technology to health, the #economy and #development should be available to all.6:40 AM · May 13, 2021·Twitter Web App

No reply. No surprise

Brief summary of Canada’s COVID-19 patent rights nonwaiver

You’ll find more about the UNESCO meeting on open science in last week’s May 7, 2021 posting (Listen in on a UNESCO (United Nations Educational, Scientific and Cultural Organization) meeting [about Open Science]).

At the time, I noted a disparity in Canada’s policies centering on open science and patents; scroll down to the “Comments on open science and intellectual property in Canada” subsection for a more nuanced analysis. For those who don’t have the patience and/or the time, it boils down to this:

  1. Canada is happily participating in a UNESCO meeting on open science,
  2. the 2021 Canadian federal budget just dedicated a big chunk of money to augmenting Canada’s national patent strategy, and
  3. Canada is “willing to discuss” a waiver at the World Trade Organization (WTO) meetings.

I predicted UNESCO would see our representative’s enthusiastic participation while our representative at the WTO meeting would dance around the topic without committing. to anything. Sadly, it’s starting to look like I was right.

Leigh Beadon in a May 12, 2021 posting on Techdirt reveals the situation is worse than I thought (Note: Links have been removed),

Few things illustrate the broken state of our global intellectual property system better than the fact that, well over a year into this devastating pandemic and in the face of a strong IP waiver push by some of the hardest hit countries, patents are still holding back the production of life-saving vaccines. And of all the countries opposing a waiver at the WTO (or withholding support for it, which is functionally the same thing), Canada might be the most frustrating [emphasis mine].

Canada is the biggest hoarder [emphasis mine] of vaccine pre-orders, having secured enough to vaccinate the population five times over. Despite this, it has constantly run into supply problems and lagged behind comparable countries when it comes to administering the vaccines on a per capita basis. In response to criticism of its hoarding, the government continues to focus on its plans to donate all surplus doses to the COVAX vaccine sharing program — but these promises were somewhat more convincing before Canada became the only G7 country to withdraw doses from COVAX. Despite all this, and despite pressure from experts who explain how vaccine hoarding will prolong the pandemic for everyone, the country has continually refused to voice its support for a TRIPS patent waiver at the WTO.

Momentum for changing Canada’s position on a COVID-19 vaccine patent right waivers?

Maclean’s magazine has a May 10, 2021 open letter to Prime Minister Justin Trudeau,

Dear Prime Minister Trudeau,

The only way to combat this pandemic successfully is through a massive global vaccination campaign on a scale and timeline never before undertaken. This requires the production of effective tools and technologies to fight COVID-19 at scale and coordinated global distribution efforts.

The Trade-Related Aspect of Intellectual Property Rights (TRIPS) agreement at the World Trade Organization (WTO) is leading to the opposite outcome. Vaccine production is hindered by granting pharmaceutical companies monopoly power through protection of intellectual property rights, industrial designs and trade secrets. Pharmaceutical companies’ refusal to engage in health technology knowledge transfer makes large-scale, global vaccine production in (and for) low- and middle-income countries all but impossible. The current distribution of vaccines globally speaks to these obstacles.

Hundreds of civil society groups, the World Health Organization (WHO), and the elected governments of over 100 countries, including India, Afghanistan, Bangladesh, Nepal, Pakistan and Sri Lanka have come together and stated that current intellectual property protections reduce the availability of vaccines for protecting their people. On May 5, 2021 the United States also announced its intention to support a temporary waiver for vaccines at the WTO.

We are writing to ask our Canadian government to demonstrate its commitment to an equitable global pandemic response by supporting a temporary waiver of the TRIPS agreement. But clearly that is a necessary but not a sufficient first step. We recognize that scaling up vaccine production requires more than just a waiver of intellectual property rights, so we further request that our government support the WHO’s COVID-19 Technology Access Pool (C-TAP) to facilitate knowledge sharing and work with the WTO to address the supply chain and export constraints currently impeding vaccine production. Finally, because vaccines must be rolled out as part of an integrated strategy to end the acute phase of the epidemic, we request that Canada support the full scope of the TRIPS waiver, which extends to all essential COVID-19 products and technologies, including vaccines, diagnostics and therapeutics.

The status quo is clearly not working fast enough to end the acute phase of the pandemic globally. This waiver respects global intellectual property frameworks and takes advantage of existing provisions for exceptions during emergencies, as enshrined in the TRIPS agreement. Empowering countries to take measures to protect their own people is fundamental to bringing this pandemic to an end.

Anand Giridharadas (author of the 2018 book, Winners Take All: The Elite Charade of Changing the World) also makes the case for a patent rights waiver in his May 11, 2021 posting on The Ink, Note: A link has been removed,

Patents are temporary monopolies granted to inventors, to reward invention and thus encourage more of it. But what happens when you invent a drug that people around the world require to stay alive? What happens when, furthermore, that drug was built in part on technology the public paid for? Are there limits to intellectual property?

For years, activists have pressured the United States government to break or suspend patents in particular cases, as with HIV/Aids. They have had little luck. Indeed, the United States has often fought developing countries when they try to break patents to do right by their citizens, choosing American drug companies over dying people.

So it was a dramatic swerve when, last week, the Biden administration announced that it supported a waiver of the patents for Covid vaccines.

Not long afterward, I reached out to several leading activists for vaccine access to understand the significance of the announcement and where we go from here.

in all this talk about patents and social justice and, whether it’s directly referenced or not, money, the only numbers of I’ve seen,until recently, have been numbers of doses and aggregate costs.

How much does a single vaccine dose cost?

A Sunday, April 11, 2021 article by Krassen Nikolov for EURACTIV provides an answer about the cost in one region, the European Union,

“Pfizer cost €12, then €15.50. The Commission now signs contracts for €19,50”, Bulgarian Prime Minister Boyko Borissov revealed on Sunday [April 11, 2021].

The European Commission is in talks with Pfizer for the supply of COVID-19 vaccines in 2022 and 2023. Borissov said the contracts provide for €19.50 per dose.

Under an agreement with the vaccine producing companies, the European Commission has so far refused to reveal the price of vaccines. However, last December Belgian Secretary of State Eva De Bleeker shared on Twitter the vaccine prices negotiated by the Commission, as well as the number of doses purchased by her government. Then, it became known that the AstraZeneca jab costs €1.78 compared to €12 for Pfizer-BioNTech.

€12 to €19,50, that’s an increase of over 50%. I wonder how Pfizer is justifying such a hefty increase?

According to a March 16, 2021 article by Swikar Oli for the National Post (a Canadian newspaper), these prices are a cheap pandemic special prices,

A top Pfizer executive told shareholders the company is looking at a “significant opportunity” to raise the price of its Pfizer-BioNTech COVID-19 vaccine.

While addressing investors at the virtual Barclays Global Healthcare Conference last week, Pfizer CFO Frank D’Amelio noted they could raise prices when the virus becomes endemic, meaning it’s regularly found in clusters around the globe, according to a transcript of the conference posted on Pfizer’s website.

Current vaccine pricing models are pandemic-related, D’Amelio explained. After the pandemic is defeated and “normal market conditions” arrive, he noted the window would open for a “significant opportunity…from a pricing perspective.”

“So the one price that we published is the price with the U.S. of $19.50 per dose. Obviously, that’s not a normal price like we typically get for a vaccine, $150, $175 [emphasis mine] per dose,” he said, “So pandemic pricing.”

If I remember it rightly, as you increase production, you lower costs per unit. In other words, it’s cheaper to produce one dozen than one, which is why your bakery charges you less money per bun or cake if you purchase by the dozen.

During this pandemic, Pfizer has been producing huge amounts of vaccine, which they would not expect to do should the disease become endemic. As Pfizer has increased production, I would think the price should be dropping but according to the Bulgarian prime minister, it’s not.

They don’t seem to be changing the vaccine as new variants arrive. So, raising the prices doesn’t seem to be linked to research issues and as for the new production facilities, surely those didn’t cost billions.

Canada and COVID-19 money

Talking about money, Canada has a COVDI-19 billionaire according to a December 23, 2020 article (Meet The 50 Doctors, Scientists And Healthcare Entrepreneurs Who Became Pandemic Billionaires In 2020) by Giacomo Tognini for Forbes.

I have a bit more about Carl Hansen (COVID-19 billionaire) and his company, AbCellera, in my December 30, 2020 posting.

I wonder how much the Canadian life sciences community has to do with Canada’s hesitancy over a COVID-19 vaccine patent rights waiver.

Avo Media, Science Telephone, and a Canadian COVID-19 billionaire scientist

I’ll start off with the COVID-19 billionaire since I imagine that excites the most interest.

AbCellera billionaire

No less an authority than the business magazine Forbes has produced a list of COVID-19 billionaires in its December 23, 2020 article (Meet The 50 Doctors, Scientists And Healthcare Entrepreneurs Who Became Pandemic Billionaires In 2020) by Giacomo Tognini (Note: Links have been removed),

Nearly a year after the first case of Covid-19 was reported in the Chinese city of Wuhan in December 2019, the world could be nearing the beginning of the end of a pandemic that has killed more than 1.7 million people. Vaccination for Covid-19 is underway in the United States and the United Kingdom, and promising antibody treatments could help doctors fight back against the disease more effectively. Tied to those breakthroughs: a host of new billionaires who have emerged in 2020, their fortunes propelled by a stock market surge as investors flocked to companies involved in the development of vaccines, treatments, medical devices and everything in between.

Altogether, Forbes found 50 new billionaires in the healthcare sector in 2020. …

Carl Hansen

Net worth: $2.9 billion

Citizenship: Canada

Source of wealth: AbCellera

Hansen is the CEO and cofounder of Vancouver-based AbCellera, a biotech firm that uses artificial intelligence and machine learning to identify the most promising antibody treatments for diseases. He founded the company in 2012. Until 2019 he also worked as a professor at the University of British Columbia, but shifted to focus full-time on AbCellera. That decision seems to have paid off, and Hansen’s 23% stake earned him a spot in the billionaire club after AbCellera’s successful listing on the Nasdaq on December 11. The U.S. government has ordered 300,000 doses of bamlanivimab, an antibody AbCellera discovered in partnership with Eli Lilly that received FDA approval as a Covid-19 treatment in November [2020].

Hansen was a professor at the University of British Columbia (UBC) where he founded AbCellera. From https://innovation.ubc.ca/about/news/spin-company-abcelleras-antibody-discovery-leads-covid-19-treatment (Note: A link has been removed),

AbCellera, a local biotechnology company founded at UBC, has developed a method that can search immune responses more deeply than any other technology. Using a microfluidic technology developed at the Michael Smith Laboratories, advanced immunology, protein chemistry, performance computing, and machine learning, AbCellera is changing the game for antibody therapeutics.

I believe a great deal of research that is commercialized was initially funded by taxpayers and I cannot recall any entrepreneurs here in Canada or elsewhere acknowledging that help in a big way. Should you be able to remember any comments of that type, please do let me know in the Comments.

Just prior to this financial bonanza, AbCellera was touting two new board members, John Montalbano on Nov. 18, 2020 and Peter Thiel on Nov. 19, 2020.

Here’s a bit about Mr. Montalbano from a Nov. 18, 2020 AbCellera news release (Note: A link has been removed),

November 18, 2020 – AbCellera, a technology company that searches, decodes, and analyzes natural immune systems to find antibodies that can be developed to prevent and treat disease, today announced the appointment of John Montalbano to its Board of Directors. Mr. Montalbano will serve as the Chair of the Audit Committee of the Board of Directors.

Mr. Montalbano is Principal of Tower Beach Capital Ltd. and serves on the boards of the Canada Pension Plan Investment Board, Aritzia Inc., and the Asia Pacific Foundation of Canada. His previous appointments include the former Vice Chair of RBC Wealth Management and CEO of RBC Global Asset Management (RBC GAM). When Mr. Montalbano retired as CEO of RBC GAM in 2015, it was among the largest 50 asset managers worldwide with $370 billion under management and offices in Canada, the United States, the United Kingdom, and Hong Kong.

Montalbano has been on this blog before in a Nov. 4, 2015 posting. If you scroll down to the subsection “Justin Trudeau and his British Columbia connection,” you’ll see mention of Montalbano’s unexpected exit as member and chair of UBC’s board of governors.

The next board member to hop on the proverbial path to riches was announced in a Nov. 19, 2020 AbCellera news release,

AbCellera, a technology company that searches, decodes, and analyzes natural immune systems to find antibodies that can be developed to prevent and treat disease, today announced the appointment of Peter Thiel to its Board of Directors.

“Peter has been a valued AbCellera investor and brings deep experience in scaling global technology companies,” said Carl Hansen, Ph.D., CEO of AbCellera. “We share his optimistic vision for the future, faith in technological progress, and long-term view on company building. We’re excited to have him join our board and look forward to working with him over the coming years.”

Mr. Thiel is a technology entrepreneur, investor, and author. He was a co-founder and CEO of PayPal, a company that he took public before it was acquired by eBay for $1.5 billion in 2002. Mr. Thiel subsequently co-founded Palantir Technologies in 2004, where he continues to serve as Chairman. As a technology investor, Mr. Thiel made the first outside investment in Facebook, where he has served as a director since 2005, and provided early funding for LinkedIn, Yelp, and dozens of technology companies. He is a partner at Founders Fund, a Silicon Valley venture capital firm that has funded companies including SpaceX and Airbnb.

“AbCellera is executing a long-term plan to make biotech move faster. I am proud to help them as they raise our expectations of what’s possible,” said Mr. Thiel.

Some Canadian business journalists got very excited over Thiel’s involvement in particular. Perhaps they were anticipating this December 10, 2020 AbCellera news release announcing an initial public offering. Much money seems to have been made not least for Mr. Montalbano, Mr. Thiel, and Mr. Hansen.

As for Mr. Thiel and taxes, I don’t know for certain but can infer that he’s not a big fan from this portion of his Wikipedia entry,

Thiel is an ideological libertarian,[108] though more recently he has espoused support for national conservatism[109] and criticized libertarian attitudes towards free trade[110] and big tech.[109]

My understanding is that libertarians object to taxes and prefer as little government structure as possible.

In any event, it seems that COVID-19 has been quite the bonanza for some people. If you’re curious you can find out more about AbCellera here.

Onto Avo Media and how it has contributed to the AbCellera story.

Avo Media, The Tyee, and Science Telephone

Vancouver (Canada)-based Avo Media describes itself this way on its homepage,

We make documentary, educational, and branded content.

We specialize in communicating science and other complex concepts in a clear, engaging way.

I think that description boils down to videos and podcasts. There’s no mention of AbCellera as one of their clients but they do list The Tyee, which in a July 1, 2020 posting (The Vancouver Company Turning Blood into a COVID Treatment: A Tyee Video) by Mashal Butt hosts a video about AbCellera,

The world anxiously awaits a vaccine to end the pandemic. But having a treatment could save countless lives in the meantime.

This Tyee video explains how Vancouver biotech company AbCellera, with funding from the federal government, is racing to develop an antibody-based therapy treatment as quickly as possible.

Experts — immunologist Ralph Pantophlet at Simon Fraser University, and co-founder and COO of AbCellera Véronique Lecault — explain what an antibody treatment is and how it can protect us from COVID-19.

It is not a cure, but it can help save lives as we wait for the cure.

This video was made in partnership with Vancouver’s Avo Media team of Jesse Lupini, Koby Michaels and Lucas Kavanagh.

It’s a video with a good explanation of AbCellera’s research. Interestingly, the script notes that the Canadian federal government gave the company over $175M for its COVID-19 work.

Why The Tyee?

While Avo Media is a local company, I notice that Jessica Yingling is listed in the final credits for the video. Yingling founded Little Dog Communications, which is based in both California and Utah. If you read the AbCellera news releases, you’ll see that she’s the media contact.

Is there a more unlikely media outlet to feature a stock market star, which probably will be making billions of dollars from this pandemic, than The Tyee? Politically, its ideology could be described as the polar opposite to libertarian ideology.

I wonder what the thought process was for the media placement and how someone based in San Diego (check out her self description on this Twitter feed @jyingling) came up with the idea?

Science Telephone

Avo Media’s latest project seems to be a podcast series, Science Telephone (this link is to the Spotify platform). Here’s more about the series and the various platforms where episodes can be found (from the Avo Media, Our Work, Science Telephone webpage) ,

Science Telephone is a new podcast that tests how well the science holds up when comedians get their hands onto it

Laugh while you learn, as the classic game of telephone is repurposed for scientific research. Each episode, one scientist explains their research to a comedian, who then has to explain it to the next comedian, and so on until it’s almost unrecognizable. See what sticks and what changes, with a rotating cast of brilliant scientists and hysterical comedians.

See a preview of the show below, or visit www.sciencetelephone.com to subscribe or listen to past episodes.

Science telephone is available on all the usual podcast platforms, including Apple Podcasts and Google Podcasts

I have included the Science Telephone preview here,

As we move towards the end of this year and this pandemic, it’s time to enjoy a little science comedy.