Novartis holding UK government to ransom with Bexsero pricing

http://www.fiercevaccines.com/story/uk-health-secretary-novartis-holding-government-ransom-bexsero-pricing/2014-11-20

Wrangling over life-saving meningitis vaccine may cost 'hundreds of children’s lives':

http://www.independent.co.uk/life-style/health-and-families/health-news/wrangling-over-lifesaving-meningitis-vaccine-may-cost-hundreds-of-childrens-lives-9871539.html

' There have been more than 1,000 cases of meningitis B since the vaccine was licensed in the UK last year. It is estimated that as many as 100 of these cases will have resulted in death, with another 300 affected by disability. The Department of Health said an “expert independent committee” had set a “cost-effective price for the vaccine and that the Government was determined to introduce it. “Negotiations,” the department said, “are continuing." '

There is no chance at this time for the vaccine to be widely sold regardless of price; the vaccine cannot be made because of serious production problems. So the strategy is for Novartis to remain obstinate on the ridiculous price to bide time until enough vaccine can be produced.

Meanwhile Pfizer will gain EU approval for their MenB vaccine that was just approved in the US and will swoop in to undercut NVS, except by that time GSK will be holding the Bexzero diaper bag. Hilarious.

 

Did they make an assumption of an extremely high price range on the GSK deal, and really cannot accept anything much lower, effectively boxing themselves in? Or is really stall tactics for the production problems

 

Well, GSK now knows that there are production problems and are clawing back some of the deal money because of the NVS lies on this matter. Check the next quarter statements. The high price and stagnant negotiations with the Brits is primarily a stall tactic right now.

NVS appears insane to the Brits. Prevenar 13 costs $250 for a three shot course in the UK and it has WAY more public health benefit, while NVS is insisting on a $500 price for Bexzero. Pricing Bexzero at about 1/10 to 1/20 of Prevenar is in line with the public health impact. If the vaccine actually works.

It is becoming clearer that the sub-strain coverage of Bexsero is likely inferior to the recently approved Pfizer MenB vaccine. Once that vaccine gets approved by the EU and jumps the pond, Bexzero will be stone dead, even if they can actually make it by that time.

We are led by overpaid morons.

 

Is it true that Andrin Oswald is being detained by the authorities?

 

Not that I have heard, but he did change his primary residence to just over the border in Germany from Basel, probably to complicate possible future extradition and subpoena proceedings.

 

What is true is that Andrin Oswald is a second cousin once removed of Lee Harvey Oswald.

 

Look at the compensation of Oswald in 2012:

http://www1.salary.com/Andrin-Oswald-Salary-Bonus-Stock-Options-for-NOVARTIS-AG.html

$2,606,414 total.

It is a wonder that Novartis still exists.

 

Oswald makes more money than any other vaccine head in the industry. He must deserve it.

 

If you add what he has made during his tenure here that's more than $20M. For score keeping purposes, Novartis paid him this while losing about 500 times this much.

 

That's what I don't get. As an outsider in the procurement racket, why would Novartis hold to such an outlandish price, and with a competitor breathing down their necks? Getting in early and cheap often rules the market. They don't seem to be interested in negotiation. That may be because they no longer care since GSK will be taking over sometime soon and Novartis is just treading water. Not being able to make the vaccine in sufficient quantity also make sense.

 

Trying to find reason in the actions of soon to be former Novartis Vaccines leadership is a well tried fool's errand. They are doing the only thing that they know how to do - trying to act smart while they are in charge.

Remember, the "father" of Bexzero, is now leading Development there, the CEO who used the false promise of the success of Bexzero in order to keep his job so that he could continue to milk millions of dollars per year in salary out of the place is still in charge and the guy who earned his "science chops" leading Development during the final stages of Bexzero is now leading all Novartis' Development.

 

This is hugely corrupt. Why don't the stockholders revolt?

 

Because they are being befuddled by NVS and the WS analysts are beholden to the board. It is like a magic show using misdirection and slight of hand. This misdirection is paying billions more for GSK oncology than its worth so that GSK would then turn around and pay billions more for Vaccines,much more than it's worth. Two of the characters above are gone and the slight of hand is the newly installed head of development mentioned above.

Analysts should at least publish to story to hold the board accoutable so that it won't happen again. They won't as it would hurt thier future access to the company.

 

You think anyone cares?