Bharat biotech deal suspended by Brazil for Covaxin

The Brazil Health Minister, Marcelo Queiroga, on Wednesday, announced that the company had temporarily suspended its deal with the Hyderabad based pharmaceutical company following allegations of irregularities in the deal.

After the temporary suspension of Bharat Biotech’s deal with Brazil for 20 million doses of the Covaxin COVID-19 vaccine, the pharma company had clarified that it did no receive any payment from the Government of Brazil till now.

The Company statement said that as of 29th June 2021, Bharat Biotech had not received any advance payments nor supplied any vaccines to the Ministry of Health Brazil.

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The company in regard to the pricing of the doses said that it had been clearly established between $15 to $20 per dose for the supplies to government outside India, and the pricing for had also been said to be at $15 per dose.

The company added that Bharat Biotech followed a step by step approach towards contracts and regulatory approvals in an 8 month long process, and a similar approach towards contracts, regulatory approvals and supplies in several countries worldwide where the Covaxin had been supplied successfully.

On June 4, the Bharat Biotech had received emergency use approval in the country of Brazil, after a National Health Surveillance Agency of Brazil, Anvisa, allowed the import of COVID-19 vaccine with certain conditions.

The Brazil Health Minister, Marcelo Queiroga, on Wednesday, announced that the company had temporarily suspended its deal with the Hyderabad based pharmaceutical company following allegations of irregularities in the deal.

The health minister tweeted that according to CGU’s preliminary analysis, there were no irregularities in the contract but due to the compliance, they opted to suspend the contract for further analysis. Queiroga added that it was noteworthy that government did not pay money for the Covaxin vaccine.

Prior to that, two testimonies by whistle-blowers before a parliamentary panel blamed President Jair Bolsonaro and his powerful coalition chief for agreeing to but the Indian vaccine at a price which was reportedly higher than the other options available in the market, and also lacked the local regulatory approval. The company in response said that they strongly disapprove allegations or implications of any wrongdoing whatsoever with respect to the supply of Covaxin.