/ 16 February 2021

How SA wants to sell the AstraZeneca vaccine for half the price and what the loss could be

Zwelie Mkhize 1099 Dv
Health Minister Dr Zweli Mkhize. (Photo Delwyn Verasamy/M&G)

The South African government is said to be selling its AstraZeneca Covid-19 vaccine consignment to the African Union or an associated body at almost half the price it originally paid for it. 

Two sources with knowledge of the discussions say that President Cyril Ramaphosa has been in talks with the AU to offload the vaccines at a cheaper rate. Another source from the treasury has also confirmed that the government has asked for advice. 

However, speaking during the State of the Nation debate, Health Minister Zweli Mkhize said the AstraZeneca doses the government purchased have been “offered” to the African Union platform, adding that they would be distributed to those countries that have already expressed interest in acquiring the stock. 

“Therefore, please be assured there will be no wasteful and fruitless expenditure,” Mkhize said.

However, the two sources said that the government had resolved to sell the vaccines after talks with pharmaceutical manufacturer the Serum Institute of India to take back doses of the Oxford-AstraZeneca Covid-19 vaccines fell apart. 

One source high up in the health department said the government had offered to sell the vaccine, which arrived on South Africa’s shores earlier in February, at an estimated $3 a dose.

 South Africa bought the vaccine doses at the cost of $5.25, which was already nearly two times the amount paid by most European countries.

Sources have also told Mail & Guardian that the government is trying to sell the bulk of South Africa’s one-million AstraZeneca Covid-19 vaccine consignment, leaving behind just 100 000 vials for research.

This emerged from discussions with scientists who are involved — and has been confirmed by a treasury source. 

Ramaphosa announced last week that the AstraZeneca consignment had been shelved in favour of the more effective Johnson & Johnson vaccine, 80 000 vials of which are due to arrive within days

This consignment is part of a recently secured 500 000 doses, which Johnson & Johnson is giving South Africa at no cost. In addition, the country has bought nine-million doses of the Johnson & Johnson vaccine, which should be arriving over the next four weeks.

Professor Helen Rees, chairperson of the South Africa Health Products Regulatory Authority, told the Mail & Guardian that the regulator had proposed to the government that 100 000 doses be used for generating data on their effects on severe disease.

“That would be a way to use some of the current consignment to generate the data. We’d trial a cohort of people at higher risk; not the highest, but the kind of people who’d be eligible for vaccination in year two of the rollout,” she said.

Rees said she and other South African scientists were urgently “trying to get a better grip”, through the World Health Organisation (WHO), on what research existed globally on the multiple Covid-19 variants. 

However, when asked about the sale of the AstraZeneca vaccine doses, Rees simply said she had heard a “rumour”.

Meanwhile, a treasury source said the government was exploring the vaccine doses’ sale to the AU, or an institution with links to the body. 

“I would think it would be all or most. They’ve asked us for advice. They have to make a decision rapidly, or else it would be wasteful. I think some of the scientists would like to have 100 000 doses for research. I think they will seek to sell the majority, though,” the source said. “There are still a lot of questions outstanding about the AstraZeneca vaccine’s long-term effectiveness in preventing death and hospitalisation.”

Professor Glenda Gray, chief of the Medical Research Council, and principal investigator on the Johnson & Johnson vaccine trial, which rose to prominence after the sudden switch from using Astra Zeneca’s product, only said that the sale is one option — “not a bad one, in my opinion”.

The treasury referred questions to the department of health, saying it “is the sole procurer of Covid-19 vaccines, and national treasury plays an advisory, compliance monitoring and oversight role”.

Attempts to reach Mkhize, director general of health Dr Sandile Buthelezi and his deputy, Anban Pillay, were unsuccessful.

Meanwhile, other scientists the M&G spoke to about the alleged AstraZeneca vaccine sale said it was bound to prompt controversy. 

“The AstraZeneca vaccine is 100% safe and can do no harm. In all likelihood, it will provide good protection against severe disease for most, even though Shabir [Madhi’s] trial was small. The history of vaccines backs this up. Would you want to roll the dice if you had no acquired immunity and worked in the healthcare sector?” said one scientist.

[/membership]