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Brownstone Institute

50/50 Split: BioNTech and the Pfizer Illusion

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BY ROBERT KOGON

The below is excerpted from Pfizer’s reported 2021 2nd quarter results. It refers to the company’s profit margin on sales of what is commonly known around the world as the “Pfizer” Covid-19 vaccine or, per its scientific codename, BNT162b2.

BNT162b2

The highlighted information is also present in other Pfizer earnings reports. It is, namely, that Pfizer splits profits on sales 50-50 with the actual developer and owner of the product: the German firm BioNTech.

This means that the main financial beneficiary from sales of the “Pfizer” vaccine is in fact BioNTech. How so if the split is 50-50? Well, apart from its 50% share of the profit on Pfizer-branded sales, per the terms of its collaboration agreement with Pfizer, BioNTech also does direct sales in two reserved territories (Germany and Turkey), and, furthermore, it has a separate agreement with Fosun Pharma assuring it (per its own representations to the SEC) 30 to 39 percent of profits on sales in China. (For lack of authorization, the latter have thus far been limited just to Hong Kong.)

But if BioNTech’s profits on sales of the “Pfizer” vaccine are greater than that of Pfizer in absolute terms, its profit marginis far, far greater. This is because while BioNTech earns a 50% share of profits on Pfizer-branded sales, it does not share the associated manufacturing and marketing costs. The 50% are royalties. This explains BioNTech’s whopping 2021 pre-tax profit margin of 79%! See the below chart from BioNTech’s 2021 F-20 filing to the SEC. Over 15 billion euros in profits on nearly 19 billion euros in revenues, roughly equivalent to the same figures in dollars at the current exchange rate. Note too that BioNTech paid nearly one-third of those 15 million euros as corporate tax in Germany. BioNTech has never commercialized any other product. So, virtually all its profits are related to the “Pfizer” vaccine.

earnings-report

The same Pfizer earnings report cited above estimates Pfizer’s own pre-tax profit margin – or here Income Before Tax (IBT) margin – on sales of the vaccine as being somewhere in the “high-20s” (p. 4). So, BioNTech’s profit margin on sales of the “Pfizer” vaccine is roughly three times higher than Pfizer’s.

Moreover, if we split the difference and say that Pfizer’s pre-tax profit margin is 27.5% and we apply this profit margin to Pfizer’s reported full year 2021 revenues on BNT162b2 sales of nearly $37 billion, we obtain gross profits on sales of roughly $10 billion. (For Pfizer’s full year 2021 revenues on BNT162b2 sales, see p. 35 of Pfizer’s year end report here. The product is identified as “Comirnaty.”)

BioNTech’s profits on sales of the “Pfizer” vaccine are thus roughly 50% greater than Pfizer’s profits: 15 billion dollars (or euros) to 10 billion.

So, in short, why is there so much focus on Pfizer in public discussion of the Covid vaccine market, virtually to the exclusion of BioNTech and even in discussion by seasoned financial analysts?

Indeed, why is the product in question even called the “Pfizer” vaccine? This is obviously a misnomer. It is BioNTech’s vaccine (supposing it is a vaccine). BioNTech developed and literally owns it. Hence, its scientific codename: BNT162b2. Pfizer merely manufactures and sells it in certain (but not all) markets on BioNTech’s behalf.

BioNTech was also the sponsor of the famous clinical trials that led to the vaccine’s authorization. This is indicated, for example, on all relevant FDA documents. Pfizer merely carried out the trials, yet again, on BioNTech’s behalf. And BioNTech is the marketing authorization holder on every market where the product is sold by Pfizer, as well, of course, as on its own reserved markets. And, finally, BioNTech is, as shown above, by far the principal financial beneficiary of the product’s commercialization.

This is not just a “semantic” matter. We need to name things correctly to understand them correctly. The intense focus on Pfizer, to the point of making BioNTech virtually disappear, has, among other things, created an illusion of Pfizer’s global power and diverted attention from state actors: in particular, Germany, which, as shown in detail in my earlier Brownstone article here, sponsored the BioNTech vaccine and has a major economic interest in the global success of both product and firm.

Indeed, as discussed in that article, the German government sponsored the very founding of BioNTech as part of a “Go-Bio” funding program whose express purpose was to make Germany a leader in biotechnologies.

As so happens, unbeknownst to most observers, Germany has also been far and away the principal funder of the WHO’s vaccine-centric global Covid-19 response. Below, for instance, is a chart showing the leading contributors to the WHO’s 2020 Covid-19 response (SPRP) budget.

who-contributions2020

As can be seen below, 2021 was not very different.

who-contributions2021

But that is a story for another time…

Author

  • Robert Kogon is a pen name for a widely-published financial journalist, a translator, and researcher working in Europe. He writes at edv1694.substack.com.

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Brownstone Institute

Anthony Fauci Gets Demolished by White House in New Covid Update

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From the Brownstone Institute

By  Ian Miller 

Anthony Fauci must be furious.

He spent years proudly being the public face of the country’s response to the Covid-19 pandemic. He did, however, flip-flop on almost every major issue, seamlessly managing to shift his guidance based on current political whims and an enormous desire to coerce behavior.

Nowhere was this more obvious than his dictates on masks. If you recall, in February 2020, Fauci infamously stated on 60 Minutes that masks didn’t work. That they didn’t provide the protection people thought they did, there were gaps in the fit, and wearing masks could actually make things worse by encouraging wearers to touch their face.

Just a few months later, he did a 180, then backtracked by making up a post-hoc justification for his initial remarks. Laughably, Fauci said that he recommended against masks to protect supply for healthcare workers, as if hospitals would ever buy cloth masks on Amazon like the general public.

Later in interviews, he guaranteed that cities or states that listened to his advice would fare better than those that didn’t. Masks would limit Covid transmission so effectively, he believed, that it would be immediately obvious which states had mandates and which didn’t. It was obvious, but not in the way he expected.

And now, finally, after years of being proven wrong, the White House has officially and thoroughly rebuked Fauci in every conceivable way.

White House Covid Page Points Out Fauci’s Duplicitous Guidance

A new White House official page points out, in detail, exactly where Fauci and the public health expert class went wrong on Covid.

It starts by laying out the case for the lab-leak origin of the coronavirus, with explanations of how Fauci and his partners misled the public by obscuring information and evidence. How they used the “FOIA lady” to hide emails, used private communications to avoid scrutiny, and downplayed the conduct of EcoHealth Alliance because they helped fund it.

They roast the World Health Organization for caving to China and attempting to broaden its powers in the aftermath of “abject failure.”

“The WHO’s response to the COVID-19 pandemic was an abject failure because it caved to pressure from the Chinese Communist Party and placed China’s political interests ahead of its international duties. Further, the WHO’s newest effort to solve the problems exacerbated by the COVID-19 pandemic — via a “Pandemic Treaty” — may harm the United States,” the site reads.

Social distancing is criticized, correctly pointing out that Fauci testified that there was no scientific data or evidence to support their specific recommendations.

“The ‘6 feet apart’ social distancing recommendation — which shut down schools and small business across the country — was arbitrary and not based on science. During closed door testimony, Dr. Fauci testified that the guidance ‘sort of just appeared.’”

There’s another section demolishing the extended lockdowns that came into effect in blue states like California, Illinois, and New York. Even the initial lockdown, the “15 Days to Slow the Spread,” was a poorly reasoned policy that had no chance of working; extended closures were immensely harmful with no demonstrable benefit.

“Prolonged lockdowns caused immeasurable harm to not only the American economy, but also to the mental and physical health of Americans, with a particularly negative effect on younger citizens. Rather than prioritizing the protection of the most vulnerable populations, federal and state government policies forced millions of Americans to forgo crucial elements of a healthy and financially sound life,” it says.

Then there’s the good stuff: mask mandates. While there’s plenty more detail that could be added, it’s immensely rewarding to see, finally, the truth on an official White House website. Masks don’t work. There’s no evidence supporting mandates, and public health, especially Fauci, flip-flopped without supporting data.

“There was no conclusive evidence that masks effectively protected Americans from COVID-19. Public health officials flipped-flopped on the efficacy of masks without providing Americans scientific data — causing a massive uptick in public distrust.”

This is inarguably true. There were no new studies or data justifying the flip-flop, just wishful thinking and guessing based on results in Asia. It was an inexcusable, world-changing policy that had no basis in evidence, but was treated as equivalent to gospel truth by a willing media and left-wing politicians.

Over time, the CDC and Fauci relied on ridiculous “studies” that were quickly debunked, anecdotes, and ever-shifting goal posts. Wear one cloth mask turned to wear a surgical mask. That turned into “wear two masks,” then wear an N95, then wear two N95s.

All the while ignoring that jurisdictions that tried “high-quality” mask mandates also failed in spectacular fashion.

And that the only high-quality evidence review on masking confirmed no masks worked, even N95s, to prevent Covid transmission, as well as hearing that the CDC knew masks didn’t work anyway.

The website ends with a complete and thorough rebuke of the public health establishment and the Biden administration’s disastrous efforts to censor those who disagreed.

“Public health officials often mislead the American people through conflicting messaging, knee-jerk reactions, and a lack of transparency. Most egregiously, the federal government demonized alternative treatments and disfavored narratives, such as the lab-leak theory, in a shameful effort to coerce and control the American people’s health decisions.

When those efforts failed, the Biden Administration resorted to ‘outright censorship—coercing and colluding with the world’s largest social media companies to censor all COVID-19-related dissent.’”

About time these truths are acknowledged in a public, authoritative manner. Masks don’t work. Lockdowns don’t work. Fauci lied and helped cover up damning evidence.

If only this website had been available years ago.

Though, of course, knowing the media’s political beliefs, they’d have ignored it then, too.

Republished from the author’s Substack

Author

Ian Miller is the author of “Unmasked: The Global Failure of COVID Mask Mandates.” His work has been featured on national television broadcasts, national and international news publications and referenced in multiple best selling books covering the pandemic. He writes a Substack newsletter, also titled “Unmasked.”

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Brownstone Institute

RCMP seem more interested in House of Commons Pages than MP’s suspected of colluding with China

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From the Brownstone Institute

By Bruce Pardy 

Canadians shouldn’t have information about their wayward MPs, but the RCMP can’t have too much biometric information about regular people. It’s always a good time for a little fishing. Let’s run those prints, shall we?

Forget the members of Parliament who may have colluded with foreign governments. The real menace, the RCMP seem to think, are House of Commons pages. MPs suspected of foreign election interference should not be identified, the Mounties have insisted, but House of Commons staff must be fingerprinted. Serious threats to the country are hidden away, while innocent people are subjected to state surveillance. If you want to see how the managerial state (dys)functions, Canada is the place to be.

In June, the National Security and Intelligence Committee of Parliamentarians (NSICOP) tabled its redacted report that suggested at least 11 sitting MPs may have benefitted from foreign election interference. RCMP Commissioner Mike Duheme cautioned against releasing their identities. Canadians remained in the dark until Oct. 28 when Kevin Vuong, a former Liberal MP now sitting as an Independent, hosted a news conference to suggest who some of the parliamentarians may be. Like the RCMP, most of the country’s media didn’t seem interested.

But the RCMP are very interested in certain other things. For years, they have pushed for the federal civil service to be fingerprinted. Not just high security clearance for top-secret stuff, but across government departments. The Treasury Board adopted the standard in 2014 and the House of Commons currently requires fingerprinting for staff hired since 2017. The Senate implemented fingerprinting this year. The RCMP have claimed that the old policy of doing criminal background checks by name is obsolete and too expensive.

But stated rationales are rarely the real ones. Name-based background checks are not obsolete or expensive. Numerous police departments continue to use them. They do so, in part, because name checks do not compromise biometric privacy. Fingerprints are a form of biometric data, as unique as your DNA. Under the federal Identification of Criminals Act, you must be in custody and charged with a serious offence before law enforcement can take your prints. Canadians shouldn’t have information about their wayward MPs, but the RCMP can’t have too much biometric information about regular people. It’s always a good time for a little fishing. Let’s run those prints, shall we?

It’s designed to seem like a small deal. If House of Commons staff must give their fingerprints, that’s just a requirement of the job. Managerial bureaucracies prefer not to coerce directly but to create requirements that are “choices.” Fingerprints aren’t mandatory. You can choose to provide them or choose not to work on the Hill.

Sound familiar? That’s the way Covid vaccine mandates worked too. Vaccines were never mandatory. There were no fines or prison terms. But the alternative was to lose your job, social life, or ability to visit a dying parent. When the state controls everything, it doesn’t always need to dictate. Instead, it provides unpalatable choices and raises the stakes so that people choose correctly.

Government intrudes incrementally. Digital ID, for instance, will be offered as a convenient choice. You can, if you wish, carry your papers in the form of a QR code on your phone. Voluntary, of course. But later there will be extra hoops to jump through to apply for a driver’s licence or health card in the old form.

Eventually, analogue ID will cost more, because, after all, digital ID is more automated and cheaper to run. Some outlets will not recognize plastic identification. Eventually, the government will offer only digital ID. The old way will be discarded as antiquated and too expensive to maintain. The new regime will provide the capacity to keep tabs on people like never before. Privacy will be compromised without debate. The bureaucracy will change the landscape in the guise of practicality, convenience, and cost.

Each new round of procedures and requirements is only slightly more invasive than the last. But turn around and find you have travelled a long way from where you began. Eventually, people will need digital ID, fingerprints, DNA, vaccine records, and social credit scores to be employed. It’s not coercive, just required for the job.

Occasionally the curtain is pulled back. The federal government unleashed the Emergencies Act on the truckers and their supporters in February 2022. Jackboots in riot gear took down peaceful protesters for objecting to government policy. Authorities revealed their contempt for law-abiding but argumentative citizens. For an honest moment, the government was not incremental and insidious, but enraged and direct. When they come after you in the streets with batons, at least you can see what’s happening.

We still don’t know who colluded with China. But we can be confident that House of Commons staffers aren’t wanted for murder. The RCMP has fingerprints to prove it. Controlling the people and shielding the powerful are mandates of the modern managerial state.

Republished from the Epoch Times

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