By Darlene Superville

The Trump administration will pay Pfizer nearly $2 billion for a December delivery of 100 million doses of a COVID-19 vaccine the pharmaceutical company is developing, Health and Human Services Secretary Alex Azar announced Wednesday.

The U.S. could buy another 500 million doses under the agreement, Azar said.

“Now those would, of course, have to be safe and effective” and approved by the Food and Drug Administration, Azar said during an appearance on Fox News.

Pfizer Inc. and BioNTech SE announced separately that the agreement is with HHS and the Defense Department for a vaccine candidate the companies are developing jointly. It is the latest in a series of similar agreements with other vaccine companies.

The agreement is part of President Donald Trump's Operation Warp Speed vaccine program, under which multiple COVID-19 vaccines are being developed simultaneously. The program aims to deliver 300 million doses of a safe and effective COVID-19 vaccine by January 2021.

Under the initiative, the government will speed development and buy vaccines — before they are deemed safe and effective — so that the medication can be in hand and quickly distributed once the FDA approves or authorizes its emergency use after clinical trials.

Pfizer and BioNTech said the U.S. will pay $1.95 billion upon receipt of the first 100 million doses it produces, following FDA authorization or approval.

Americans will receive the vaccine for free, the companies said.

Azar said the contract brings to five the number of potential coronavirus vaccines that are under development with U.S. funding. Nearly two dozen are in various stages of human testing around the world, with several entering final test to prove if they really work.

Trump said Tuesday at a briefing that “the vaccines are coming, and they’re coming a lot sooner than anyone thought possible, by years.”

As early as next week, a vaccine created by the National Institutes of Health and Moderna Inc. is set to begin final-stage testing in a study of 30,000 people to see if it really is safe and effective. A few other vaccines have begun smaller late-stage studies in other countries, and in the U.S. a series of huge studies are planned to begin each month through fall in hopes of, eventually, having several vaccines to use.

Pfizer is finishing an earlier stage of testing to determine which of four possible candidates to try in a larger, final study.

Other countries are also scrambling to get a vaccine for COVID-19, which has killed more than 617,000 people, according to a tally kept by Johns Hopkins University.

Nearly 4 million Americans have been infected by the new coronavirus and at least 142,000 have died from COVID-19, the disease it causes, according to Johns Hopkins.

Britain announced Monday it had secured access to another 90 million experimental COVID-19 vaccines made by Pfizer and others, a move some campaigners warned could worsen a global scramble by rich countries to hoard the world’s limited supply of COVID-19 vaccines.

China, where the new coronavirus originated, also has several vaccine candidates entering final testing. Trump blames Beijing for not doing a better job of containing the virus and allowing it to spread around the world. Still, he said he'd be willing to work with China if it were first to the market with a reliable vaccine.

“We're willing to work with anybody that's going to get us a good result,” Trump said Tuesday. “We're very close to the vaccine. I think we’re going to have some very good results.”

The FDA has told manufacturers it expects any vaccine to be at least 50% effective to qualify. But at a congressional hearing Tuesday, Rep. Frank Pallone, D-N.J., said he was worried Trump could push the agency into prematurely clearing a vaccine.

“My fear is that FDA will be forced by the Trump administration to approve a vaccine that lacks effectiveness,” Pallone said.

Executives from five leading vaccine companies testified that they will take no shortcuts in their testing of the shots, so that people can be confident in the results. In addition, it won’t be just the FDA rendering an opinion -- each vaccine will likely be judged nearly simultaneously by regulatory authorities in Britain and Europe.

“I don’t think any of the regulatory bodies that we have interacted with are lowering their standards,” said Menelas Pangalos, executive vice president of AstraZeneca, which is manufacturing a potential vaccine developed by Oxford University. “We would not be trying to launch a medicine that is not effective.”

AP Medical Writer Lauran Neergaard contributed to this report.

Share:
More In Business
Stocks Close at Session Lows, Tech Rout Drags on Nasdaq
Stocks closed at session lows Thursday, mostly due to a larger tech selloff after Facebook parent company Meta reported weak earnings results one day before. The Nasdaq closed down nearly 4% for its worst day since September 2020. Erin Gibbs, Chief Investment Officer at Main Street Asset Management, joins Closing Bell to discuss today's close, Meta earnings, Amazon earnings, and more
Spotify Beats Earnings Expectations, Projects Tame User Growth as it Deals with Joe Rogan Controversy
Spotify beat fourth quarter earnings expectations, and also reported a jump in monthly active users and in paid subscribers. The report comes as the company grapples with a new question: is it simply a streaming platform, or is it a media company responsible for the content it posts, like Joe Rogan's controversial podcast? Greg Martin, Co-Founder of Rainmaker Securities, joins Closing Bell to discuss why the stock took a hit even though earnings results were positive, how the company can move forward through the Rogan controversy, and more.
Wormhole Victim of Latest Crypto Hack in DeFi Space
Chen Arad, Chief Operating Officer for Solidus Labs, joins Cheddar News' Closing Bell, where he explains why Wormhole was particularly vulnerable to a $320+ million crypto hack and discusses what new investors need to do in order to protect their assets.
RenoRun Raises $142 Million to Fuel Construction E-Commerce Platform Across Canada and U.S.
E-commerce platform for construction and building materials RenoRun has raised $142 million in a Series B round, which the company says is the fourth largest Series B round in Canadian history. RenoRun’s platform offers same-day delivery of construction materials to job sites in Canada and the United States. The company aims to revolutionize the construction industry by maximizing productivity and efficiency. RenoRun co-founder and CEO Eamonn O’Rourke joins Cheddar News' Closing Bell to discuss.
Meta's Earnings Meltdown: Weak Results, Apple iOS Privacy Impact, Metaverse Revenue Loss
Facebook parent company Meta reported weaker-than-expected fourth quarter earnings, and also issued disappointing guidance for Q1 2022. The tech giant is also under pressure due to Apple's iOS privacy change, as well as continued multi-billion dollar losses for its metaverse focused business unit. Angelo Zino, Tech Analyst at CFRA Research, joins Closing Bell to discuss the earnings results, how Apple's iOS privacy change will impact revenue, whether the metaverse is an underrated investment opportunity, and more.
Millions of Americans Forced to Relocate Due to Rising Rent
Rental prices are rising across the country, causing millions to relocate. Average rents rose 14 percent last year, and Americans expect rents will continue to rise by about 10 percent just this year. Daryl Fairweather, chief economist at Redfin, joins Cheddar News to discuss.
Gaming Industry Levels Up as Sony Acquires Bungie for $3.6 Billion
The video game industry has seen monumental growth the past few years - with an increasing amount of companies jumping head first into the space. In January alone, Microsoft announced its plan to acquire Activision Blizzard, game publisher Take-Two agreed to buy Zynga, and most recently, Sony announced it has agreed to buy game developer Bungie for $3.6 billion. Tobias Batton, CEO and founder of Ex Populus, joined Cheddar Movers to discuss the surge in M&A activity in the gaming space.
Facebook Parent Meta Slips on Disappointing Q4 Earnings
Facebook parent Meta reported disappointing results in its first quarterly earnings report since rebranding to focus on the metaverse. The tech giant delivered mixed results with quarterly profit falling well below Wall Street expectations. Shares plunged more than 20 percent in after hours trading as a result. Martin Garner, COO of CCS Insight, joined Cheddar Movers to break down the company's results.
Super Group Lists on NYSE as Sports Betting Heats Up
Super Group, the company behind leading global online sports betting and gaming businesses Betway and Spin, has landed on Wall Street. The company went public via SPAC with Sports Entertainment Acquisition Corp., and now lists on the NYSE under the ticker symbol 'SGHC.' This debut comes as the U.S. sports betting market continues to heat up with more and more states legalizing the practice. Eric Grubman, chairman of Super Group, joined Cheddar to discuss.
Load More