Pharma Gets Warm Spotlight At White House Event Showcasing J&J-Merck Collaboration

Source : 'The Pink Sheet'

The pharma industry got a star turn at the White House 10 March as Johnson & Johnson CEO Alex Gorsky and Merck & Co., Inc. CEO Ken Frazier joined US President Biden in celebrating the “historic” manufacturing collaboration between the companies aimed at accelerating the production of J&J’s COVID-19 vaccine.

“Today we’re seeing two health companies, competitors, each with over 130 years of experience, coming together to write a more hopeful chapter in our battle with COVID-19,” Biden said. “What’s clear is this is a historic, nearly unprecedented collaboration.”

Under the recently announced deal brokered by the Biden administration, Merck  & Co. will manufacture J&J’s COVID-19 vaccine as well as other vaccines and therapeutics against the virus. The government invoked the Defense Production Act to provide up to $268.8m so that Merck can convert, upgrade and equip two of its plants for the tasks. ()

“I want to thank the two companies for showing how we can come together to beat this virus by putting patriotism and public health first,” Biden emphasized. He also pointed out “it’s not just J&J and Merck, Pfizer Inc. and Moderna, Inc. also worked closely with us to help speed up the delivery of millions more doses” of their COVID-19 vaccines.

Biden also announced the US government has arranged to purchase an additional 100 million doses of J&J’s vaccine, explaining: “I’m doing this because during this wartime we need maximum flexibility.” There is “always the chance that we will encounter unexpected challenges or there will be a new need for a vaccination effort. A lot can happen. A lot can change, and we need to be prepared.”

The event was an effort to put the Biden administration’s stamp on a new phase of the government’s collaboration with the pharma industry to speed the development of treatments and vaccines for COVID-19, building on the Trump administration’s efforts with Operation Warp Speed.

Biden pointed to the J&J-Merck collaboration and final congressional passage of his $1.9tn economic stimulus bill as evidence that “we can do big things, important things, in this country.” The legislation, which got final approval in the House earlier in the day, includes a provision eliminating the cap on drug rebates in Medicaid. ()

Comments by Merck CEO Ken Frazier at the event suggested potential for a better rapport between industry and the new president than was the case with former President Trump.

“Mr. President, I want to start by thanking you for the practical, steady and resolute leadership you and your administration have provided, putting people before politics and fostering an environment in which private sector manufacturing and scientific capabilities can work in healthy partnership with government to create a force multiplier in a battle we must win,” Frazier said.

However, the cordial nature of the exchanges may not carry over into every issue  – for example it doesn't mean hat the president’s interest in drug pricing reform will change much going forward. Industry has hoped its remarkable achievements in rapidly developing and gaining authorization for COVID-19 vaccines and treatments would deflect critics and calls for drug pricing reform. That did not prove to be the case in the previous administration and if anything, seems less likely now. ()

By Cathy Kelly