Update: Precedent of waiving Covid-19 vaccine patents could have lasting negative impact

Healthcare industry facing moral dilemma

Many are predicting a bright future for biotech firms involved in the production of Covid-19 vaccines as they are rolled out across the globe, but US President Joe Biden's proposal that vaccine producers should temporarily waive patent protection could have a "lasting negative impact" on the sector, expects warn.

Last week (Wednesday 5 May), Biden announced his support for waiving intellectual property (IP) rights for Covid-19 vaccines, bowing to increasingly pressure from within his own administration and other nations to help the rollout of the vaccine in less developed countries, such as India and South Africa. The news sent some pharmaceutical stocks plummeting. Moderna's stock was down 6.2% to $163 following the announcement while the Novavax share price fell 5% to $172, though Pfizer's stock price dropped only slightly. Healthcare shares in China were also affected by the news, with the ...