LONG before the Covid-19 pandemic, one of the largest mass vaccination drives conducted in the history of mankind was the inoculation of millions of children against polio in 1955.

       According to Centres for Disease Control and Prevention, in the early 1940-1950s, polio disabled an average of 35,000 people a year in the United States with the majority being children. One of the most respected presidents, president Franklin. D. Roosevelt himself, suffered from polio infection and became disabled when he was 39 years old.

       As a parent, you can imagine the fear for your child succumbing to polio. Then came Dr Jonas Salk, the virologist who developed the first successful polio vaccine which was made public in April 1955. Television personality, Edward R. Murrow, in a memorable interview asked Dr Salk: Who owned the patent to the polio vaccine? The doctor responded, “Well, the people, I would say. There is no patent. Could you patent the sun?”

       It was estimated the patent was worth US$7bil. Sure, there are conflicting accounts to the actual story but most people have recognised the altruism and contribution of Dr Salk in the fight against polio.

       Without a patent, the Salk vaccine reached 90 countries by 1959. Together with Albert Sabin’s attenuated live oral polio vaccine being put to commercial use in 1961, domestic transmission of polio was completely eliminated in the US in a span of 25 years.

       With Covid-19 pandemic and its variants still raging globally, including in our country, vaccines which are crucial to savings lives have continued to attract various controversies such as profiteering, hoarding and inequitable distribution among others. In these dire times, it would appear that big money remains involved.

       Domestically, in our stock market, many companies related to vaccines were in the limelight since 2020. Retail investors flock towards any news remotely related to companies which are in talks or having signed memorandum of understandings (MoUs) with global vaccine producers.

       This has led to the share price of various companies – be it within or outside the healthcare sector – to surge beyond reasonableness. The question is, was it justified and how did it really pan out for investors of these companies in the past one year?

       Table 1 lists down six companies which were in the press frequently due to their notable MoUs or agreements for vaccine distribution as well as other business contracts within the space. I will briefly highlight the latest progress of these six companies to give the background to the crux of the issue at hand.

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       Pharmaniaga Bhd was given the rights to undertake fill and finish for China’s vaccine Sinovac. Our government has a direct procurement agreement with Pharmaniaga.

       Duopharma Biotech Bhd had an agreement with Russia’s Sputnik V, which until now is pending approval by the National Pharmaceutical Regulatory Authority (NPRA).

       Yong Tai Bhd signed an agreement with China-based Shenzhen Kangtai Biological Products Co Ltd to exclusively distribute KCONVAC Covid-19 vaccine in Malaysia. Currently, it is still undergoing phase three clinical trial after being given approval by NPRA’s Medical Review Ethics Committee.

       Ho Wah Genting Bhd inked an agreement to collaborate with US-based E-Mo Biology Inc (EBI) in developing a preventive Covid-19 based on the use of existing oral poliovirus vaccine (OPVs). The US Food and Drug Administration is reviewing EBI’s submission on the findings of the phase four clinical trial for emergency use authorisation.

       Kanger International Bhd signed a three-year licence agreement with China stated-owned pharmaceutical company Sinopharm to have priority purchase rights and distribution of its vaccines in Malaysia. NPRA recently granted approval for Sinopharm vaccines in Malaysia.

       Solution Group Bhd inked a deal with China-based CanSino Biologics for the supply of 3.5 million one-dose CanSino vaccines to the Health Ministry and was given approval by the NPRA.

       Even as cases in our country surged to record levels, hitting above 1.32 million with death toll close to 12,000, there are companies which are eyeing this sector for lucrative profits instead of a humanitarian angle.

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       In the list of companies above, apart from Pharmaniaga and Duopharma which were traditionally involved in the healthcare space, the others have none or limited prior experience. Among them, there is a property developer, tourism operator, bamboo products manufacturer and teaching equipment supplier.

       Switching from the existing core business into a new business entirely is not an overnight endeavour. In addition, regulations provide when “significant change in the business direction or policy of a listed corporation” occurs, consultation and approval from the Securities Commission are required.

       I do not doubt there are possibilities of companies successfully pivoting from existing core business to a new venture only to achieve great success. Yet, I am certain these would be rare incidences.

       Furthermore, most companies that pivot well would choose the right timing and unlikely to have poor track record. In short, retail investors need to distinguish the “real deal” from the “perpetual prospect”.

       Back on July 28, 2020, former president Donald Trump announced the deal where The Eastman Kodak Co (Kodak) signed a letter of interest for a US$765mil government loan to venture into Covid-19 vaccine manufacturing.

       Kodak’s shares surged to a high of US$60 from US$2.62 a day before the announcement. Top Kodak executives with large stock option and insiders sold shares during the rally. Today, the stock trades at US$7.24 (RM30.68).

       Therefore, this is clearly not an issue unique to local markets. If anything, the earnings reported shown in the Bar Chart and share price performance of these companies in Table 1 are good indications.

       For retail investors, having been through this experience and witnessing the execution ability of the companies would serve as a good guidance for future investment decisions. While I am a believer in the capitalist system, I think certain “goods” ought to be a public good. Vaccine is one of those.

       How about pharmaceutical companies which developed these vaccines through years of laborious research and development? Wouldn’t it be unfair to deny their path to profitability? In my view, if they relied on internal resources instead of government funding or subsidies (like Kodak), then the companies earned the right to recoup their investments.

       However, is now the right time? Can the model be structured as a form of deferred payment between government and corporations instead of an upfront premium or worse still, bullet payment through intermediaries and brokers which contribute to higher cost of procurement?

       In the recent Wimbledon event, Professor Dame Sarah Gilbert who designed the Oxford-AstraZeneca (AZ) coronavirus vaccine in early 2020, was given a standing ovation. She chose to do what Dr Salk did 61 years ago, which was to forego patent and profits for her research.

       As a result, Oxford University and Astra Zaneca Plc agreed to do so as well. This help made the AZ vaccine with a price per dose at only US$4 (RM17), considerably lower than other Covid-19 jabs. Today, it is among the most widely used around the world, in over 170 countries.

       It is stories like this that reinforces my belief in humanity. It helps people remain optimistic that together, with the best interest at heart, mankind can adapt and survive any catastrophe.

       With that, I dedicate this article with my utmost gratitude to all researchers and frontliners who are the real heroes in this trying times.

       Ng Zhu Hann is the author of “Once Upon A Time In Bursa”. He is a lawyer and former chief strategist of a Fortune 500 corporation.