Or the military - force readiness issues
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Replying to @aspoerl1
As I understand it, if a vaccine is developed, it will belong to a company that took big risk to develop it. Excepting antitrust, they ought to be able to choose how it's distributed. The US military can buy it like everyone else.
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Replying to @Molson_Hart
I don’t disagree, although in reality, I see it probably working out a bit differently. It’s likely that in exchange for the fast tracking the government is enabling, the first few hundred thousand doses will be sold to the US gov’t - nat sec issues.
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Replying to @aspoerl1
Should companies really be indebted for government allowing them to develop and test a vaccine?
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Replying to @Molson_Hart
Of course not. I’m not making a value judgment here; simply observing.
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Replying to @Molson_Hart
IMO vaccine development by these companies isn’t driven from a profit motive. In this case I think it’s 1) a good PR look for the company and the industry and 2) an opportunity to buy a lot of goodwill with govt regulators.
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Replying to @aspoerl1
I don’t know a ton about the economics but I’m inclined to agree. Good points. Flip side is first company to make a vaccine absent govt interference will make a killing...if we ever get a vaccine
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Replying to @Molson_Hart @aspoerl1
Matt Levine holds that since pharma companies are largely held by funds that also own a large share of the rest of the economy, these funds are probably calling the pharma companies: "make a vaccine asap, who cares about profits, just restart the economy so my indexes go up".
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Not the full story, of course, but probably not an entirely irrelevant dynamic either.
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Charlie Munger would call the incentives for pharma co's to develop a vaccine a lollapalooza. 1. Great thing for humanity 2. Huge profit incentive 3. Benefits brand 4. Restart the economy HIV was a slow niche illness. I am more optimistic about COVID.
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