No wrong done, says Biotech after Brazil puts off deal

New Delhi, June 30

Bharat Biotech has denied any wrongdoing after Brazil on Wednesday temporarily suspended the $324-million deal to procure India-made Covaxin amid graft allegations that have hit the country’s top brass, including President Jair Bolsonaro.

The deal, involving procurement of 20 million Covaxin doses, came under a cloud after accusations of high pricing ($15 per dose), hasty talks and pending regulatory clearances for the vaccine.

Bharat Biotech today said all due processes were followed and no advance payments had been received from Brazil.

The Brazilian Health Minister Marcelo Queiroga tweeted about the deal, saying: “According to the CGU’s (auditor) preliminary analysis, there are no irregularities in the contract but due to compliance the Ministry of Health opted to suspend the contract for further analysis.”

Bharat Biotech today said that since the first meetings with the Brazilian ministry from November 2020 till June this year, a step-by-step approach had been followed towards contracts, and regulatory approvals.

“Emergency use authorisation was received on June 4 and as of June 29, Bharat Biotech has not received any advance payments nor supplied any vaccines to the MOH, Brazil,” a Bharat Biotech statement said.

The firm said it had followed similar approaches towards contracts, regulatory approvals and supplies in several countries worldwide where Covaxin was being supplied successfully.

Defending its pricing, Biotech said the Covaxin price has been clearly established between $15-20 per dose for supplies to governments outside India.

The firm added that pricing for Brazil had similarly been indicated at $15 per dose.

Bharat Biotech has received advance payments from several other countries at the above price points, with supplies in process, pending approvals. Commenting on allegations of graft against Precisa Medicamentos, Biotech said, “Precisa Medicamentos is Bharat Biotech’s partner in Brazil, providing assistance, guidance and support with regulatory submissions, licensure, distribution and conduct of phase III clinical trials.

“Biotech follows a similar partnership model in all countries, where its vaccines are supplied, as it does not have its own offices in these countries.” —TNS