5% royalty from Covaxin sales to ICMR a cause for concern among experts: Report

Covaxin-maker Bharat Biotech is set to pay a 5 per cent royalty on net sales of the vaccine to the co-developer of the jab, Indian Council of Medical Research. This is causing concerns in public health and intellectual property expert circles, according to a report by The Times of India.

Experts told the publication that the payout on a half-yearly basis and logic behind the calculation are being questioned. The royalty affects the affordability of the vaccine, experts were quoted saying. Though the price of the vaccine for the government was revised, Covaxin is the most expensive Covid-19 vaccine in the private market at Rs 1,410 for one dose.

The Indian Council of Medical Research (ICMR) supported Bharat Biotech with the provision of the SARS-CoV2 virus, animal studies, virus characterisation, test kits and partial funding for clinical trial sites.

“The government should also verify the investments made by Bharat Biotech. If ICMR gets a royalty of 5 per cent on Rs 35 crore funding, can the government verify that BB invested upwards of Rs 650 crore for development of Covaxin?” Murali Neelakantan, principal lawyer at Amicus told the daily.

Amulya Nidhi of Jan Swasthya Abhiyan said that a nexus between the government and Bharat Biotech seemed apparent for earning profits. Nidhi added that the Centre should order technology transfer and compulsory licence to be given to potential manufacturers and government-owned companies instead of giving 5 per cent royalty to ICMR.

Since the start of Covid-19 vaccination on January 16, India has administered over 5.64 crore doses of Covaxin out of a total 47 crore administered doses, according to the Co-WIN dashboard.

ICMR and Bharat Bitoech have also drawn criticism from the scientific community. Covaxin, was approved earlier this year for emergency use before final trials were completed, a move doctors and public health experts said was premature and fueled widespread hesitancy.

The company, the Centre and the ICMR have been further criticised for not making the details of the intellectual property rights to the Covaxin public. Bharat Biotech in a statement last month said it will pay unspecified royalties to the ICMR and India’s National Institute of Virology.

(With inputs from PTI and Bloomberg)

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