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Brazil to suspend $324 mn Covaxin deal amid probe

by On The Dot
June 30, 2021
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Brazil to suspend $324 mn Covaxin deal amid probe

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Rio De Janeiro: Brazil Health Minister Marcelo Queiroga on Tuesday said that the country will suspend its Covid-19 vaccine contract with India’s Bharat Biotech, amid allegations of corruption in the deal.

A federal investigation is underway into alleged irregularities in a contract between Brazil’s health ministry and Bharat Biotech for 20 million (2 crore) doses of Covaxin.

Queiroga said that his team would investigate the allegations while the suspension was ongoing. Brazil President Jair Bolsonaro has denied any wrongdoings.

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The corruption allegations pertain to buying the Covaxin doses at a higher price. To buy vaccines, the Brazilian health ministry will have to pay $320 million (Rs 2,375 crore approximately) to Precisa Medicamentos, Bharat Biotech’s intermediary in Brazil. So each dose of Covaxin will cost Brazil $15 (approximately Rs 1,100).

This is significantly higher than what the health ministry paid for American pharmaceutical giant Pfizer’s vaccine, which has already obtained regulatory approval in Brazil.

Tags: $324 mn Covaxin vaccine dealBharat BiotechBrazilCovaxinJair BolsonaroMarcelo Queiroga
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