Roche CEO Severin Schwan Opposes COVID-19 Vaccine Patent Waiver, Warns of Long-Term Industry Damage

In early May, U.S. President Biden announced a call for major pharmaceutical companies to waive patents for COVID-19 vaccines. However, key figures in the vaccine industry appear unreceptive, with most executives opposing the waiver of intellectual property rights for drugs and vaccines related to the COVID-19 pandemic.

Recently, after publicly voicing his opposition, Roche CEO Severin Schwan further warned that this move could lead to a "disaster".

In an interview with the *Financial Times*, Schwan stated that waiving patent rights would be "counterproductive" and would not address supply shortages in the short term. Schwan argued that, in reality, such an exemption would undermine incentives for innovation in the biotechnology sector and lead to "catastrophic results" akin to the nationalization of East Germany's pharmaceutical industry. While supporters of the measure may anticipate short-term benefits for certain institutions, the waiver will ultimately have severe long-term consequences. "When I am no longer CEO, this move will adversely affect my descendants."

Earlier this month, the Biden administration unexpectedly took action to support a World Trade Organization (WTO) proposal to temporarily waive patent rights for COVID-19 products, a move that was also praised by the World Health Organization (WHO). However, much like several of Biden’s previous policies, this initiative has faced staunch opposition from various quarters. The pharmaceutical industry, lobbying groups, and even some countries have strongly opposed the waiver of COVID-19-related intellectual property rights. Most drug manufacturers argue that this measure will not achieve the intended results. Critics, meanwhile, contend that the announcement deprives developers of high-tech medicines and vaccines of their rightful economic returns.

Currently, the chief executives of leading COVID-19 vaccine manufacturers, including Pfizer, Moderna, and BioNTech, have also publicly expressed opposition to the proposal. Pfizer CEO Albert Bourla stated last week that raw material shortages are limiting vaccine production, and waiving patent protections would only exacerbate the issue. "This would create difficulties for the critical manufacturing capacity we need," Pfizer spokesperson Sharon Castillo noted, adding that even if the patented formulas were disclosed, Pfizer's vaccine could not be easily replicated.

Stéphane Bancel, CEO of Moderna, also disagreed with President Biden’s decision, expressing surprise at the U.S. move to endorse intellectual property sharing. Echoing Bourla’s perspective, Moderna has been working to scale up its mRNA production capacity, which essentially did not exist prior to the pandemic. During a conference call with analysts last week, Bancel stated that even if patents were made public, it would still be impossible to hire personnel with the technical know-how to manufacture mRNA, as such experts simply do not exist.

Although Roche has not yet entered the COVID-19 vaccine sector, it has developed numerous COVID-19 diagnostic tests during the pandemic and sought to repurpose its rheumatoid arthritis drug Actemra for hospitalized COVID-19 patients. The company has also partnered with Regeneron to increase the supply of its combination antibody therapy.

However, the U.S.-backed intellectual property waiver still garnered lukewarm support from civil society groups. Organizations such as Oxfam and Public Citizen praised the Biden administration’s move and commended the government for challenging the pharmaceutical industry’s monopolistic dominance.

Source: Roche CEO Schwan joins chorus of pharma execs blasting COVID patent waiver