- 5 years ago
12 November 2021
It’s been 15 months since the Federal Government announced it had done a deal with AstraZeneca to purchase doses of its vaccine and 12 months since it announced its first deal with Pfizer, but with the vaccine bill now well over $8 billion and climbing, it’s time to put a stop to what has effectively become an unaccountable Covid funding handout.
It’s a pandemic, we get it, and Australia was late in deciding which vaccines it wanted to purchase resulting in political pressure that sent the Government scrambling to secure doses, particularly from Pfizer. But having now secured enough for every Australian, regardless of age, to be double-vaccinated and receive eight booster shots, surely it’s time to stop.
What’s more, with this unfettered fund still open and seemingly no limit on the amount the Government is willing to pay out, companies are now queuing up for the next line of open funding – Covid treatments.
Gilead, Roche, GSK, Pfizer and MSD have inked deals for Covid treatments, bankrolled by public funding over and above the $8 billion-plus spent on Covid vaccines.
The Morrison Government is announcing new deals all the time and, while there is no doubt these therapies will be crucial in turning the pandemic into an endemic, it is time the Government announced when it will return to business as usual with these therapies treated the same as those for other deadly diseases such as cancer, diabetes, and rare diseases.
Under normal circumstances, all 13 Covid products would either have gone through the PBAC for health technology assessment (HTA) to determine their value for money, pitted against each other in safety, efficacy, and price. While some “rapid HTA” is reported to have been conducted, where are the public summary documents? Where is the transparency?
TGA boss John Skerritt is already finding himself in hot water over a lack of transparency. The Australian’s Terry McCann this week called for Skerrett to be sacked over claims he made about Moderna’s vaccine, illustrating that the tide is turning, at least with the media, and such statements will be scrutinised.
Who got what in vaccine handouts?
Let’s take a look at what the Government has spent so far, having purchased or ordered 255.8 million vaccine doses for Australia and the region at a cost of more than $8 billion – an average cost per dose of around $32. Of this, Australians have used just over 37 million, or 14 per cent of our total order, although much has been given to our Pacific neighbours.
Working out where the money went is not an easy task. The US price for Pfizer’s mRNA vaccine was US$20 ($27), although CFO Frank D’Amelio said the company was typically getting “US$150, US$175 per dose”.
This vaccine makes up 49 per cent of Australia’s vaccine arsenal, having purchased 126 million doses. It’s also the most expensive, so it’s a safe bet we paid at least $5 billion for these doses, or $40 a dose.
Moderna is charging US$15 a dose ($20) and Australia ordered 25 million doses of this mRNA shot, putting Moderna’s slice of the pie at $500 million while Novavax is charging US$16 a dose ($21.75). With 51 million doses of this vaccine on backorder, its bill comes in at an estimated $1.1 billion.
Then we have the AstraZeneca vaccine, 51 million doses of which are being produced on Australian shores by our very own CSL along with 3.8 million doses purchased from the UK. At the global price of $5.50 a pop, Australia paid just under $300 million for this vaccine, although CSL may well have secured extra funds to manufacture the shot.
The Government also wrote off $400 million on the failed UQ vaccine and gave $253.2 million to COVAX along with $623.2 million to assist Pacific and Southeast Asian countries to access vaccines. Add it all up and it comes to $8.2 billion, so I reckon I’m close to getting the split right.
How does this compare with other vaccines?
Companies have been complaining for years about vaccines being undervalued in Australia, with the Government’s investment in the National Immunisation Program (NIP) going backwards in real terms. In the current 2021-22 financial year, the Government has budgeted just $488.7 million for the NIP – about six per cent of the amount spent on Covid vaccines to date.
If Australia had invested over $8 billion into the NIP, at the current rate it would fund the scheme for 17 years.
Health Department Secretary Brendan Murphy said the Government was doing some early work on transitioning boosters into the NIP and the Department of Health says it won’t happen before 2022-23.
However, two things are likely to delay the transition of Covid vaccines and therapies to standard HTA processing in Australia. First, the Government is unlikely to make changes until after the upcoming Federal election and second, sponsors need time to prepare PBAC submissions.
Companies have clearly enjoyed the speed of the current arrangements, none more so than Pfizer, but it is time the unfettered handouts under the Covid cash fund are given an end date.
Australian patients with other diseases waiting for funding of treatments that offer to save, extend, or improve their quality of life have every right to be outraged. Yes, Covid vaccines and treatment save lives and help the economy get back on track but a few billion more invested in the PBS and NIP would arguably do the same. It is time to start levelling the playing field.
Set a time to shut the lid on Covid cash handouts, release public summary documents on the HTA of vaccines and treatments, and push new therapies through the PBAC with additional cash directed to the PBS and NIP, giving Australians with diseases other than Covid the chance to also live longer, healthier and better lives.
©MedNews 2021