Pfizer was accused of holding Brazil hostage over claims that it wanted to protect itself against possible side-effect lawsuits arising from its contract to provide 100m Covid jabs to the country.
Pfizer ExportBV signed a $1bn (700m), March deal with Brazil. Despite its previous complaints, it agreed to a liability waiver for any side effects of the vaccine. This exempts Pfizer from civil liability for serious side effects resulting from the vaccine's use, indefinitely.
Since the 1980s, indemnity for compensation claims is a common feature of many contracts between countries and large pharma companies.
In the contract, Brazil was also required to submit to US secret courts any dispute relating to vaccines.
The contract was published on April's health ministry website. A confidentiality agreement with Pfizer prohibits publication. It was quickly removed and was largely ignored by the rest of Brazil, until a French writer and lawyer tweeted the information last month.
The contract states that the purchaser agrees to defend, indemnify and hold harmless Pfizer and BioNTech from any claims, actions or demands by them, as well as from all settlements, penalties and fines, costs, and expenses arising from, relating to, and resulting from, the vaccine.
The Brazilian government, echoing AstraZenecas' bitter row with the EU had previously complained about Pfizers stipulation stating that if delivery is delayed, there is no penalty. It agreed that Pfizer would make commercially reasonable efforts in meeting the delivery deadline, but it would not be liable or subject to any late delivery penalties.
Brazil also agreed to not use Pfizer's name, trade name or service marks, trademarks or trade dress, or logos in public releases, advertising, or any other publication without its written consent.
In February, the Bureau of Investigative Journalism reported that Pfizer demanded Argentina and Brazil put up sovereign assets to guarantee indemnity. It also requested that money be deposited in foreign bank accounts be used as a guarantee fund. Pfizer claimed it had not interacted with any country's diplomatic, military or cultural assets.
Eduardo Pazuello, the former health minister, stated in January that everyone is familiar with Pfizers clauses. It's obvious that I don't need to reiterate it. However, I will be brief: I disclaim all side effects from now on. It's that simple. Brazilian courts will waive any legal action against the company. It's that simple. You can also use Brazilian assets abroad as collateral or long-term deposits for future actions.
Further, the contract reveals that Brazil received Pfizer jabs at a much lower price than the EU at around $10 (7) per dose. However, the pharmaceutical giant increased the number of doses it promised to provide.
Campaigners claimed that Pfizer's behavior suggested it was more concerned with protecting profits than the public.
Pfizer vaccine. Pfizer's $1bn contract to supply 100m vaccines to Brazil has been criticized for its waiver of liability. Photograph: Andr Penner/AP
Alena Ivanova is a Global Justice Now campaigns officer. She stated that Pfizer is happy to make a profit on public-funded coronavirus vaccines but does not want to take any risk. This is a common tactic of pharmaceutical companies, which seem to be more concerned with protecting their profits than the public.
We cannot continue to put our trust in private companies to deliver lifesaving drugs, only for them to hold other countries hostage.
The government made all vaccine acquisition contracts online, except for those from Johnson & Johnson, as required by domestic law. Pfizer is credited with saving many lives through its vaccine, but it has also been criticised for its inequity in its rollout due to its preference for higher-priced products from richer countries.
Arthur Rollo, the ex-national consumer secretary of Brazil's justice ministry, stated that it was highly questionable to keep confidential an administrative contract.
He said: Even when there are suspicions of embezzlement, the public administration is bound to transparency. Janssen [Johnson & Johnsons' subsidiary] and Pfizer claim that their contracts have been standardised. It doesn't make sense to require this secrecy clause, as you can't compare the contracts in different countries.
Juan Branco, a French writer and lawyer, posted the contract to Twitter. He stated that the production cost for a Pfizer vaccine was estimated at $2 (1.50), so the legitimacy of the profits must be challenged. He said that this debate cannot take place if the public is not included in the process.
Pfizers Covid vaccine sales accounted for nearly 25% of the company's revenue in the first three months. They earned $3.5bn (2.5bn), in just three months. Pfizer/BioNTech plans to produce 3bn doses in the current year, and 4bn by 2022. According to Reuters analysts have predicted revenue of more than $6.6bn (4.8bn), for the Pfizer/BioNTech shot by 2023. This is mainly from boosters.
At a Santa Catarina health center in Joinville, a man is given the Covid vaccine. Brazil's Congress has opened an inquiry into how the government responded to the pandemic. Photograph: Carlos Junior/AFP/Getty Images
Brazil announced last month that it will begin giving booster shots of BioNTech/Pfizer vaccines to immunosuppressed and vulnerable individuals, as well as over-80s. The companies announced that they had reached a deal to produce their vaccine in Latin America through Brazil's Eurofarma Laboratrios SA.
This is a significant turnaround for Brazil's government. Jair Bolsonaro (extreme-right president), who had previously been openly hostile to Pfizers' proposals, mockingly claimed that vaccines could make recipients alligators. Officials in his government called the demands of the company abusive.
During the congress inquiry, Carlos Murillo, president of Pfizers Latin America, was present. Photograph: Adriano Machado/Reuters
Brazil's congress launched an investigation into the government's response to the pandemic. The investigation's leaders believe that Bolsonaros' administration was negligent in failing to purchase vaccines in 2020 and pushing ineffective drugs like chloroquine. If the government had acted sooner, lives could have been saved.
Carlos Murillo of Pfizers Latin America, president, stated that indemnity clauses are enforceable in more than 110 countries, and denied any claims that the company was exploitative during a May televised congressional inquiry.
Pfizer wanted everyone to participate in this pandemic. This was a rare situation. He said that it had set the same conditions for all countries, as it did in Brazil.
Sharon Castillo, spokesperson for Pfizer, stated that indemnification clauses are common in situations of public health emergencies. She stated that Pfizer and BioNTech are not attempting to interfere with any country's diplomatic, military or culturally important assets in bilateral negotiations. Any suggestion of the contrary is misleading.
She said that Pfizer has a partnership relationship with governments and has negotiated bilateral agreements with them. The Pfizer/BioNTech covid-19 vaccine has been distributed in more than 120 countries and territories around the globe.
In all our contracts, Pfizer/BioNTech are deploying a pricing structure for high, middle, and low/lower-middle-income countries, she said.
Pfizer self-funded the Covid-19 vaccine. Because we knew what was at stake, the company spent $2bn before knowing if the vaccine would succeed. We recently authorized spending $600m more on Covid-19 research, which will increase our total research and development spend in 2021 by over $1bn.
We are very concerned about any adverse reactions that may be associated with the Covid-19 vaccine.
Brazil's health ministry stated that it is adhering to the confidentiality rule, but could not comment.
