Plus CSL would have to convert its existing operations to mRNA.Now what if a serious side effect happens with the mRNA vaccine. Talk about putting all your eggs in one basket.
Plus it probably means no more flu vaccine made here. Smart move. Not.
Are you an advisor to the Federal Govt? You seem to have assumed CSL putting all its eggs in the one basket.
https://www.afr.com › Companies › Healthcare And Fitness
4 Dec 2018 — Australians may have to wait until 2021 for
CSL's new influenza vaccine, ... be 36 per cent more effective in preventing flu than
traditional egg-based vaccines ... Goods Administration for approval to
use the vaccine in Australia next year. ... as well as being one of the
largest producers of influenza vaccines.
Turned out to be somewhat optimistic in the timing of the changeover.
The largest flu vaccine manufacturing plant in the southern hemisphere will be built in Melbourne, in an effort to make sure Australia has stockpiles of critical vaccines and antivenoms in the future.
www.abc.net.au
"It's the long term benefit ... we have the capacity with CSL's existing plant in Melbourne, [but] that's an egg-based facility and the world is moving to cellular facilities, so we didn't want to lose that capability.
Well, make that now 2026 at least, thanks to a $1bn 'gift?' (a $1bn purchase guarantee over 10 years regardless of what is required) from the Federal Govt towards a new facility. Nothing like having a monopoly to allow you to run the (fully depreciated?) 60 yr old Parkville plant & equipment into the ground.
"The Parkville plant was built more than 60 years ago and cannot be expanded or modified to accommodate new technologies and production requirements." aka where the flu vaccine is brewed = Parkville predominantly.
However, from the announcements made to the ASX (to date) - the 2026 plant does not appear capable of making mRNA vaccines. Wonder if there may be a change announced shortly?
Mind you the Broadmeadows plant can have equipment swapped in/out, & is where the AZ vaccine is being made under licence and appears to be using bioreactors not eggs (phew no flu vaccine implications
).
Note the timing of the announcement & the timing of the Federal Govt signing the first contract with Pfizer.
_________________________________
BioNTech has shown it is quite willing to license other pharma companies to produce their vaccine.
Just one batch (at a large scale plant) of the mRNA vaccine is sufficient to make 8 million doses and 250 million/year. There is/was nothing to stop CSL from adding a 1/10 or 1/20th scale mRNA set-up (for any successful mRNA vaccine) by only replacing a small part of their equipment at their Broadmeadows plant.
A 1/20th scale would produce approximately 240,000 doses a week. Meanwhile CSL would still have the bulk of capacity for their traditional business. BTW how much of their flu capacity has been supplanted by the AstraZeneca vaccine due to the 'bottling' under capacity?
As CSL has 'reluctantly' revealed most of the issues it is having is due to not having sufficient 'bottling' production capacity for the AZ vaccine - something that a 1st Yr production systems engineering student could have calculated in ten minutes.
After all the 'traditional' flu vaccine operation is very space intensive & was responsible for using 1/3rd of all eggs produced each year in Australia.
In contrast the mRNA process is much less space intensive (no I am not suggesting that CSL has tens of millions of hens sitting in their facility
).
Moderna - I suspect the 'implications' about why no contract has been entered into has little to do with the 'indemnities' which seem more 'smirk & mirrors', a bit like the claimed contract with AZ in August 2020.