Monday, November 16, 2020

USA
Our Vaccine Infrastructure Needs a Radical Overhaul
Decades-long funding cuts for pandemic preparedness hamper coordinated distribution and equitable access. We must reimagine how to make life-saving vaccines available to everyone.

November 14, 2020 Ravi Gupta BOSTON REVIE


Nearly a year into a pandemic that has killed more than a million people and laid waste to both public health systems and the global economy, many have turned their hopes to a vaccine. Optimism has been buoyed by the historic pace of development of multiple COVID-19 vaccine candidates and the recent news that Pfizer, in partnership with the small company BioNTech, has reported preliminary data on a vaccine candidate showing 90 percent effectiveness. The arrival of a vaccine in the next few months would be a remarkable feat, but fundamental questions—beyond basic assurances of safety and efficacy—remain. Will there be enough doses, and who will get them?

This is not the first time we face questions of equitably deploying a vaccine during an outbreak. Eleven years ago, as the H1N1 virus swept across the United States and 73 other countries, the World Health Organization declared the first pandemic in over forty years. H1N1 seemed deadlier and more transmissible than seasonal influenza. Recollections of the 1918 Spanish flu pandemic’s colossal death toll occupied the collective psyche. An H1N1 vaccine seemed essential to prevent history from repeating, much as a COVID-19 vaccine does now.

Development of an H1N1 vaccine progressed rapidly, in large part due to existing technology and regulatory systems for seasonal influenza vaccines. But avoiding preventable deaths required ensuring the vaccine’s prompt manufacturing and equitable distribution within the U.S. and across the world. Manufacturing delays led to shortages that complicated an already halting domestic distribution plan, and by the time the vaccine supply increased, the pandemic had waned. All told, 90 of 162 million doses were utilized in the United States. The rest were donated to other countries (after broken pledges to do so earlier) or simply thrown away. A truth was illuminated that persists today: the prevailing system of vaccine production and distribution is not designed to promote equitable access.

Much has changed since the H1N1 pandemic. Technological platforms have advanced considerably. International institutions have forged partnerships to prioritize therapeutic and vaccine candidates. Financing of vaccine development has evolved, with the creation of non-profit entities like the Coalition for Epidemic Preparedness Innovations (CEPI).

Yet much remains the same. Vaccine manufacturing remains unprepared for surges and without a global entity charged with centralized financing. International legal agreements ensuring equitable access are non-enforceable. The international hoarding and price gouging for personal protective equipment early in this pandemic are harbingers for vaccine maldistribution to the highest bidder. Within the United States, in particular, decades-long funding cuts for pandemic preparedness and public health hamper coordinated distribution for efficient access. Surviving a pandemic requires extraordinary movement on these issues. We must reimagine how to make life-saving vaccines available to everyone, for pathogens both new and old.

Deployment of H1N1 vaccines faced a bottleneck that we still face today: insufficient manufacturing capacity. Coordination between manufacturers, government agencies, and universities in multiple continents led to the FDA approval of four H1N1 vaccines within six months. But enough vaccine could simply not be produced in time. Years of industry consolidation due to limited profits from vaccine development had left just three companies available to manufacture the majority of global influenza vaccines. Manufacturing capacity was dependent on well-established but time-consuming and unpredictable egg-based technology from World War II, while production lines were already occupied with seasonal flu vaccines.

Today, the leading COVID-19 vaccine candidates rely on novel technology that hasn’t yet been deployed at scale. These platforms have the potential for faster production, but they will likely face unforeseen difficulties. Messenger RNA (mRNA) vaccines, for example—like Pfizer and BioNTech’s—require temperatures as low as -94 degrees Fahrenheit to maintain stability, whereas H1N1 vaccines were easily stored in small fridges. COVID-19 vaccines will likely require two doses, doubling the total number needed, while H1N1 vaccines required just one.

At the root of the manufacturing problem is a near exclusive reliance on the private sector, which has limited incentives for preemptive investment. As a result, funding hastily flows from public coffers to private companies to bolster manufacturing capacity once an outbreak has already begun. During the H1N1 pandemic, the U.S. government awarded contracts to manufacturers to upgrade their facilities and start vaccine production. With COVID-19, we’ve seen a dizzying number of agreements between governments and private companies to scale production, among them agreements facilitated by the U.S. public-private partnership Operation Warp Speed.

Of course, it isn’t feasible to expect immediate global availability of sixteen billion doses. But a reactive approach to vaccine production grounded in a market-based logic de-emphasizes the long-term readiness and preparation needed for efficient and equitable deployment of a vaccine in a pandemic.

We need an alternative approach that centers on maintaining public manufacturing facilities to respond to the acute needs of an outbreak before it happens. In the wake of H1N1, the U.S. government invested in developing four manufacturing sites in concert with a university and private companies. But these facilities lacked sustained development and were unequipped for rapid, mass production during the COVID-19 pandemic.

In the past few months, substantial Operation Warp Speed funds have gone to the Texas A&M University System and Emergent Solutions to partner with vaccine developers to manufacture doses. It remains to be seen whether an injection of funds at this moment will help construct and maintain a sustainable, public manufacturing sector for future outbreaks. We should recognize that preparedness is not a novel concept; epidemiologists and national security experts alike have been arguing about its importance for decades. Twenty years ago, science journalist Laurie Garrett characterized the collapse of global health infrastructure as a “betrayal of trust.” We are witnessing the effects of that betrayal today.

An initial vaccine shortfall necessitates thoughtful distribution to enable equitable global access. The H1N1 pandemic exposed glaring disparities between rich and poor nations in procuring vaccines. Before a pandemic was even declared, developed countries placed large advance orders with manufacturers. The World Health Organization secured small donation commitments from developed countries and manufacturers for developing countries. The United States pledged to donate 10 percent of its vaccines, but as H1N1 cases and vaccine shortages increased, it rescinded its offer. Canada and Australia permitted exports from their domestic manufacturers only after their own citizens were immunized. Eventually, 78 million doses—an inadequate amount to begin with—were donated to 77 countries, but the worst of the pandemic had already passed.

Fears of such vaccine nationalism—countries prioritizing their own populations at the expense of a globally coordinated strategy—have materialized in the current pandemic, too. Multilateral advance market commitments, a form of payment to manufacturers predicated on proof of a successful vaccine, are meant to equitably allocate vaccines among countries. Various advance market commitments (AMCs) have been proposed and created for COVID-19 vaccines, including $2 billion in urgent funding specifically for low- and middle-income country AMCs as part of an effort by the COVAX facility—an international collaboration between the World Health Organization, CEPI, and Gavi, the Vaccine Alliance—to deliver 2 billion doses globally by the end of 2021. (COVAX estimates the total cost for delivering on its plan to be $18.1 billion.)

Though advance market commitments such as the Gavi-led pneumococcal vaccine fund have been used successfully (though not without criticism of its price and lack of transparency), COVID-19 is the first test of whether they can function during a pandemic affecting wealthy and poor countries simultaneously. Bilateral agreements between manufacturers and individual wealthy countries who seek to guarantee their own supply have undermined the COVAX advance market commitment and precluded efficient and equitable global allocation of potential vaccines. Pfizer and BioNTech, for instance, have yet to sign any agreements to provide developing countries with their vaccine, and the majority of their initial supply has already been claimed by wealthier countries.

An enforceable trade and investment agreement is needed. Sadly, simply beginning these discussions seems too advanced when the Trump administration has amazingly sought to withdraw funding and support from the World Health Organization and refused to join COVAX—even though more than 150 countries have joined.

The absence of a global strategy encompassing high-risk populations is morally reprehensible, but it also makes no biological or economic sense. The virus will continue to spread without coordination for vaccine allocation based on need. Elements of international integration and global travel that accelerated this pandemic will perpetuate transmission. Global trade and tourism will further suffer. COVID-19 has far surpassed H1N1’s scale, but a fundamental lesson remains: going it alone is a strategy in which no one emerges victorious.

Until enough vaccines are produced, the United States will face similar challenges of equitable allocation and distribution domestically. The availability of H1N1 vaccine within the United States was beset by distribution difficulties despite extensive planning. Autopsies of H1N1 vaccination efforts demonstrate how vaccines were distributed to states without accounting for their projected need. Ill-conceived tracking systems for vaccine administration and unclear communication about multiple vaccine formulations and target groups created misperceptions.

COVID-19 vaccine distribution promises to be even more complicated given multiple encouraging candidates, which may only be efficacious in certain populations and require multiple doses. In a recent missive, the Centers for Disease Control and Prevention placed responsibility on state and local health departments to identify vaccine target groups, manage vaccination plans, and track administration. This seems reasonable, but it fails to account for the decades of inexplicable, myopic funding cuts to state and local health departments.

Public health departments will be hard-pressed not only to overcome existing racial and class disparities in health care access and vaccination rates but also to address inequities in infections and deaths from coronavirus due to structural racism. As with seasonal influenza vaccines, there were troubling inequities in H1N1 vaccine rates among African Americans and Hispanics, the same groups who were particularly vulnerable to infection because of poverty, chronic medical conditions, inability to socially distance, and lower health care access. Baseline disparities and underfunding of public health departments complicate efforts to avoid similar mistakes with COVID-19, which has been devastatingly concentrated among Black, Latinx, and Native American communities.

A National Academies of Science, Engineering, and Medicine report released last month detailed a plan for equitable allocation of COVID-19 vaccines, and to its credit, includes an assessment of social vulnerability as an underlying principle for allocation. To the extent possible, black and brown communities, members of which constitute large proportions of essential workers unable to socially distance from home, must be prioritized for vaccine allocation.

Moreover, state Medicaid programs, which provide insurance coverage for nearly a third of the Black and a third of the Latinx nonelderly U.S. population, also face barriers to equitably delivering vaccines. Low Medicaid reimbursement rates for providers preclude their ability to vaccinate individuals fully and rapidly. During H1N1, states were left to determine their own reimbursement rates, but for COVID-19, federal support is needed to help increase providers’ ability to reach communities of color.

In so many ways, we are in unprecedented territory. But though the players have changed—a novel coronavirus, innovative vaccine technologies, newly formed international organizations—the game is in many other ways the same: constantly playing catchup, rewarding those with influence, unable to collectively share the fruits of human ingenuity. Nothing about this is immutable.

There are signs of progress, and lawmakers have taken notice. Senator Elizabeth Warren and Representative Jan Schakowsky proposed the COVID-19 Emergency Manufacturing Act of 2020, which seeks to establish a public system for manufacturing medicines and vaccines. If enacted, the legislation would require COVID-19 products be made available for free domestically and at cost internationally. Congresswoman Schakowsky also introduced the Make Medications Affordable by Preventing Pandemic Price-gouging Act, which prohibits monopolies on new, taxpayer-funded COVID-19 drugs and waives exclusive licenses for any drugs during a public health emergency.

The key is to extend these early steps beyond this pandemic. COVID-19 has been hailed as a once in a generation pandemic. But in this century alone we have experienced outbreaks with the potential to convert into a pandemic every few years. Old diseases spread unabated and new, more lethal viruses lie tentatively dormant. Without any changes to the underlying drivers—climate change, unchecked deforestation, increasing global travel—why should we expect that this pattern will change?

A pandemic exacerbates chronic, vexing problems, but it also sharpens our understanding of them. Crises offer rare opportunities to fundamentally change the paradigm of producing and delivering life-saving vaccines to everyone. While vaccines are far from a cure-all when it comes to fighting outbreaks, they are undeniably important. The arrival of a COVID-19 vaccine may return us to normal, but we must do better than normal—both for this pandemic and the inevitable next one.

The Story of mRNA: How a Once-Dismissed Idea Became a Leading Technology in the Covid Vaccine Race

It is a story that began three decades ago, with a little-known scientist who refused to quit.



November 15, 2020 Damian Garde (STAT), Jonathan Saltzman (Boston Globe) BOSTON GLOBE, STAT

Part of a "freezer farm," a football field-sized facility for storing finished Covid-19 vaccines, under construction in Kalamazoo, Mich. Pfizer’s experimental vaccine requires ultracold storage, at about -70 C, Jeremy Davidson / Pfizer via AP


ANDOVER, Mass. — The liquid that many hope could help end the Covid-19 pandemic is stored in a nondescript metal tank in a manufacturing complex owned by Pfizer, one of the world’s biggest drug companies. There is nothing remarkable about the container, which could fit in a walk-in closet, except that its contents could end up in the world’s first authorized Covid-19 vaccine.

Pfizer, a 171-year-old Fortune 500 powerhouse, has made a billion-dollar bet on that dream. So has a brash, young rival just 23 miles away in Cambridge, Mass. Moderna, a 10-year-old biotech company with billions in market valuation but no approved products, is racing forward with a vaccine of its own. Its new sprawling drug-making facility nearby is hiring workers at a fast clip in the hopes of making history — and a lot of money.

In many ways, the companies and their leaders couldn’t be more different. Pfizer, working with a little-known German biotech called BioNTech, has taken pains for much of the year to manage expectations. Moderna has made nearly as much news for its stream of upbeat press releases, executives’ stock sales, and spectacular rounds of funding as for its science.

Each is well-aware of the other in the race to be first.

But what the companies share may be bigger than their differences: Both are banking on a genetic technology that has long held huge promise but has so far run into biological roadblocks. It is called synthetic messenger RNA, an ingenious variation on the natural substance that directs protein production in cells throughout the body. Its prospects have swung billions of dollars on the stock market, made and imperiled scientific careers, and fueled hopes that it could be a breakthrough that allows society to return to normalcy after months living in fear.

Both companies have been frequently name-checked by President Trump. Pfizer reported strong, but preliminary, data on Monday, and Moderna is expected to follow suit soon with a glimpse of its data. Both firms hope these preliminary results will allow an emergency deployment of their vaccines — millions of doses likely targeted to frontline medical workers and others most at risk of Covid-19.Related: Four reasons for encouragement based on Pfizer’s Covid-19 vaccine results

There are about a dozen experimental vaccines in late-stage clinical trials globally, but the ones being tested by Pfizer and Moderna are the only two that rely on messenger RNA.

For decades, scientists have dreamed about the seemingly endless possibilities of custom-made messenger RNA, or mRNA.

Researchers understood its role as a recipe book for the body’s trillions of cells, but their efforts to expand the menu have come in fits and starts. The concept: By making precise tweaks to synthetic mRNA and injecting people with it, any cell in the body could be transformed into an on-demand drug factory.

But turning scientific promise into medical reality has been more difficult than many assumed. Although relatively easy and quick to produce compared to traditional vaccine-making, no mRNA vaccine or drug has ever won approval.

Even now, as Moderna and Pfizer test their vaccines on roughly 74,000 volunteers in pivotal vaccine studies, many experts question whether the technology is ready for prime time.

“I worry about innovation at the expense of practicality,” Peter Hotez, dean of the National School of Tropical Medicine at Baylor College of Medicine and an authority on vaccines, said recently. The U.S. government’s Operation Warp Speed program, which has underwritten the development of Moderna’s vaccine and pledged to buy Pfizer’s vaccine if it works, is “weighted toward technology platforms that have never made it to licensure before.”

Whether mRNA vaccines succeed or not, their path from a gleam in a scientist’s eye to the brink of government approval has been a tale of personal perseverance, eureka moments in the lab, soaring expectations — and an unprecedented flow of cash into the biotech industry.

It is a story that began three decades ago, with a little-known scientist who refused to quit.


Before messenger RNA was a multibillion-dollar idea, it was a scientific backwater. And for the Hungarian-born scientist behind a key mRNA discovery, it was a career dead-end.

Katalin Karikó spent the 1990s collecting rejections. Her work, attempting to harness the power of mRNA to fight disease, was too far-fetched for government grants, corporate funding, and even support from her own colleagues.

It all made sense on paper. In the natural world, the body relies on millions of tiny proteins to keep itself alive and healthy, and it uses mRNA to tell cells which proteins to make. If you could design your own mRNA, you could, in theory, hijack that process and create any protein you might desire — antibodies to vaccinate against infection, enzymes to reverse a rare disease, or growth agents to mend damaged heart tissue.

In 1990, researchers at the University of Wisconsin managed to make it work in mice. Karikó wanted to go further.

The problem, she knew, was that synthetic RNA was notoriously vulnerable to the body’s natural defenses, meaning it would likely be destroyed before reaching its target cells. And, worse, the resulting biological havoc might stir up an immune response that could make the therapy a health risk for some patients.Related: Selling stock like clockwork, Moderna’s top doctor gets $1 million richer every week

It was a real obstacle, and still may be, but Karikó was convinced it was one she could work around. Few shared her confidence.

“Every night I was working: grant, grant, grant,” Karikó remembered, referring to her efforts to obtain funding. “And it came back always no, no, no.”

By 1995, after six years on the faculty at the University of Pennsylvania, Karikó got demoted. She had been on the path to full professorship, but with no money coming in to support her work on mRNA, her bosses saw no point in pressing on.

She was back to the lower rungs of the scientific academy.

“Usually, at that point, people just say goodbye and leave because it’s so horrible,” Karikó said.

There’s no opportune time for demotion, but 1995 had already been uncommonly difficult. Karikó had recently endured a cancer scare, and her husband was stuck in Hungary sorting out a visa issue. Now the work to which she’d devoted countless hours was slipping through her fingers.

“I thought of going somewhere else, or doing something else,” Karikó said. “I also thought maybe I’m not good enough, not smart enough. I tried to imagine: Everything is here, and I just have to do better experiments.”


Katalin Karikó, a senior vice president at BioNTech overseeing its mRNA work, in her home office in Rydal, Penn. Jessica Kourkounis for the Boston Globe

In time, those better experiments came together. After a decade of trial and error, Karikó and her longtime collaborator at Penn — Drew Weissman, an immunologist with a medical degree and Ph.D. from Boston University — discovered a remedy for mRNA’s Achilles’ heel.

The stumbling block, as Karikó’s many grant rejections pointed out, was that injecting synthetic mRNA typically led to that vexing immune response; the body sensed a chemical intruder, and went to war. The solution, Karikó and Weissman discovered, was the biological equivalent of swapping out a tire.

Every strand of mRNA is made up of four molecular building blocks called nucleosides. But in its altered, synthetic form, one of those building blocks, like a misaligned wheel on a car, was throwing everything off by signaling the immune system. So Karikó and Weissman simply subbed it out for a slightly tweaked version, creating a hybrid mRNA that could sneak its way into cells without alerting the body’s defenses.

“That was a key discovery,” said Norbert Pardi, an assistant professor of medicine at Penn and frequent collaborator. “Karikó and Weissman figured out that if you incorporate modified nucleosides into mRNA, you can kill two birds with one stone.”

That discovery, described in a series of scientific papers starting in 2005, largely flew under the radar at first, said Weissman, but it offered absolution to the mRNA researchers who had kept the faith during the technology’s lean years. And it was the starter pistol for the vaccine sprint to come.Related: The Road Ahead: Charting the coronavirus pandemic over the next 12 months — and beyond

And even though the studies by Karikó and Weissman went unnoticed by some, they caught the attention of two key scientists — one in the United States, another abroad — who would later help found Moderna and Pfizer’s future partner, BioNTech.

Derrick Rossi, a native of Toronto who rooted for the Maple Leafs and sported a soul patch, was a 39-year-old postdoctoral fellow in stem cell biology at Stanford University in 2005 when he read the first paper. Not only did he recognize it as groundbreaking, he now says Karikó and Weissman deserve the Nobel Prize in chemistry.

“If anyone asks me whom to vote for some day down the line, I would put them front and center,” he said. “That fundamental discovery is going to go into medicines that help the world.”


Derrick Rossi, one of the founders of Moderna, in his Newton, Mass., home. He ended his affiliation with the company in 2014. Suzanne Kreiter/the Boston Globe

But Rossi didn’t have vaccines on his mind when he set out to build on their findings in 2007 as a new assistant professor at Harvard Medical School running his own lab.

He wondered whether modified messenger RNA might hold the key to obtaining something else researchers desperately wanted: a new source of embryonic stem cells.

In a feat of biological alchemy, embryonic stem cells can turn into any type of cell in the body. That gives them the potential to treat a dizzying array of conditions, from Parkinson’s disease to spinal cord injuries.

But using those cells for research had created an ethical firestorm because they are harvested from discarded embryos.

Rossi thought he might be able to sidestep the controversy. He would use modified messenger molecules to reprogram adult cells so that they acted like embryonic stem cells.

He asked a postdoctoral fellow in his lab to explore the idea. In 2009, after more than a year of work, the postdoc waved Rossi over to a microscope. Rossi peered through the lens and saw something extraordinary: a plate full of the very cells he had hoped to create.

Rossi excitedly informed his colleague Timothy Springer, another professor at Harvard Medical School and a biotech entrepreneur. Recognizing the commercial potential, Springer contacted Robert Langer, the prolific inventor and biomedical engineering professor at the Massachusetts Institute of Technology.

On a May afternoon in 2010, Rossi and Springer visited Langer at his laboratory in Cambridge. What happened at the two-hour meeting and in the days that followed has become the stuff of legend — and an ego-bruising squabble.

Langer is a towering figure in biotechnology and an expert on drug-delivery technology. At least 400 drug and medical device companies have licensed his patents. His office walls display many of his 250 major awards, including the Charles Stark Draper Prize, considered the equivalent of the Nobel Prize for engineers.

As he listened to Rossi describe his use of modified mRNA, Langer recalled, he realized the young professor had discovered something far bigger than a novel way to create stem cells. Cloaking mRNA so it could slip into cells to produce proteins had a staggering number of applications, Langer thought, and might even save millions of lives.

“I think you can do a lot better than that,” Langer recalled telling Rossi, referring to stem cells. “I think you could make new drugs, new vaccines — everything.”

Langer could barely contain his excitement when he got home to his wife.

“This could be the most successful company in history,” he remembered telling her, even though no company existed yet.

Three days later Rossi made another presentation, to the leaders of Flagship Ventures. Founded and run by Noubar Afeyan, a swaggering entrepreneur, the Cambridge venture capital firm has created dozens of biotech startups. Afeyan had the same enthusiastic reaction as Langer, saying in a 2015 article in Nature that Rossi’s innovation “was intriguing instantaneously.”

Within several months, Rossi, Langer, Afeyan, and another physician-researcher at Harvard formed the firm Moderna — a new word combining modified and RNA.

Springer was the first investor to pledge money, Rossi said. In a 2012 Moderna news release, Afeyan said the firm’s “promise rivals that of the earliest biotechnology companies over 30 years ago — adding an entirely new drug category to the pharmaceutical arsenal.”

But although Moderna has made each of the founders hundreds of millions of dollars — even before the company had produced a single product — Rossi’s account is marked by bitterness. In interviews with the Globe in October, he accused Langer and Afeyan of propagating a condescending myth that he didn’t understand his discovery’s full potential until they pointed it out to him.

“It’s total malarkey,” said Rossi, who ended his affiliation with Moderna in 2014. “I’m embarrassed for them. Everybody in the know actually just shakes their heads.”

Rossi said that the slide decks he used in his presentation to Flagship noted that his discovery could lead to new medicines. “That’s the thing Noubar has used to turn Flagship into a big company, and he says it was totally his idea,” Rossi said.

Afeyan, the chair of Moderna, recently credited Rossi with advancing the work of the Penn scientists. But, he said, that only spurred Afeyan and Langer “to ask the question, ‘Could you think of a code molecule that helps you make anything you want within the body?’”

Langer, for his part, told STAT and the Globe that Rossi “made an important finding” but had focused almost entirely “on the stem cell thing.”


Robert Langer, the prolific inventor and MIT biomedical engineering professor, is a Moderna co-founder. Pat Greenhouse/the Boston Globe

Despite the squabbling that followed the birth of Moderna, other scientists also saw messenger RNA as potentially revolutionary.

In Mainz, Germany, situated on the left bank of the Rhine, another new company was being formed by a married team of researchers who would also see the vast potential for the technology, though vaccines for infectious diseases weren’t on top of their list then.

A native of Turkey, Ugur Sahin moved to Germany after his father got a job at a Ford factory in Cologne. His wife, Özlem Türeci had, as a child, followed her father, a surgeon, on his rounds at a Catholic hospital. She and Sahin are physicians who met in 1990 working at a hospital in Saarland.

The couple have long been interested in immunotherapy, which harnesses the immune system to fight cancer and has become one of the most exciting innovations in medicine in recent decades. In particular, they were tantalized by the possibility of creating personalized vaccines that teach the immune system to eliminate cancer cells.

Both see themselves as scientists first and foremost. But they are also formidable entrepreneurs. After they co-founded another biotech, the couple persuaded twin brothers who had invested in that firm, Thomas and Andreas Strungmann, to spin out a new company that would develop cancer vaccines that relied on mRNA.

That became BioNTech, another blended name, derived from Biopharmaceutical New Technologies. Its U.S. headquarters is in Cambridge. Sahin is the CEO, Türeci the chief medical officer.

“We are one of the leaders in messenger RNA, but we don’t consider ourselves a messenger RNA company,” said Sahin, also a professor at the Mainz University Medical Center. “We consider ourselves an immunotherapy company.”Related: Covid-19 Drugs and Vaccines Tracker

Like Moderna, BioNTech licensed technology developed by the Pennsylvania scientist whose work was long ignored, Karikó, and her collaborator, Weissman. In fact, in 2013, the company hired Karikó as senior vice president to help oversee its mRNA work.

But in their early years, the two biotechs operated in very different ways.

In 2011, Moderna hired the CEO who would personify its brash approach to the business of biotech.

Stéphane Bancel was a rising star in the life sciences, a chemical engineer with a Harvard MBA who was known as a businessman, not a scientist. At just 34, he became CEO of the French diagnostics firm BioMérieux in 2007 but was wooed away to Moderna four years later by Afeyan.

Moderna made a splash in 2012 with the announcement that it had raised $40 million from venture capitalists despite being years away from testing its science in humans. Four months later, the British pharmaceutical giant AstraZeneca agreed to pay Moderna a staggering $240 million for the rights to dozens of mRNA drugs that did not yet exist.


Moderna CEO Stéphane Bancel at the company’s offices in Cambridge, Mass. Aram Boghosian for STAT

The biotech had no scientific publications to its name and hadn’t shared a shred of data publicly. Yet it somehow convinced investors and multinational drug makers that its scientific findings and expertise were destined to change the world. Under Bancel’s leadership, Moderna would raise more than $1 billion in investments and partnership funds over the next five years.

Moderna’s promise — and the more than $2 billion it raised before going public in 2018 — hinged on creating a fleet of mRNA medicines that could be safely dosed over and over. But behind the scenes the company’s scientists were running into a familiar problem. In animal studies, the ideal dose of their leading mRNA therapy was triggering dangerous immune reactions — the kind for which Karikó had improvised a major workaround under some conditions — but a lower dose had proved too weak to show any benefits.

Moderna had to pivot. If repeated doses of mRNA were too toxic to test in human beings, the company would have to rely on something that takes only one or two injections to show an effect. Gradually, biotech’s self-proclaimed disruptor became a vaccines company, putting its experimental drugs on the back burner and talking up the potential of a field long considered a loss-leader by the drug industry.Related: In the race for a Covid-19 vaccine, Pfizer turns to a scientist with a history of defying skeptics — and getting results

Meanwhile BioNTech has often acted like the anti-Moderna, garnering far less attention.

In part, that was by design, said Sahin. For the first five years, the firm operated in what Sahin called “submarine mode,” issuing no news releases, and focusing on scientific research, much of it originating in his university lab. Unlike Moderna, the firm has published its research from the start, including about 150 scientific papers in just the past eight years.

In 2013, the firm began disclosing its ambitions to transform the treatment of cancer and soon announced a series of eight partnerships with major drug makers. BioNTech has 13 compounds in clinical trials for a variety of illnesses but, like Moderna, has yet to get a product approved.

When BioNTech went public last October, it raised $150 million, and closed with a market value of $3.4 billion — less than half of Moderna’s when it went public in 2018.

Despite his role as CEO, Sahin has largely maintained the air of an academic. He still uses his university email address and rides a 20-year-old mountain bicycle from his home to the office because he doesn’t have a driver’s license.

Then, late last year, the world changed.


Moderna’s facility in Norwood, Mass. Alex Hogan / STAT

Shortly before midnight, on Dec. 30, the International Society for Infectious Diseases, a Massachusetts-based nonprofit, posted an alarming report online. A number of people in Wuhan, a city of more than 11 million people in central China, had been diagnosed with “unexplained pneumonia.”

Chinese researchers soon identified 41 hospitalized patients with the disease. Most had visited the Wuhan South China Seafood Market. Vendors sold live wild animals, from bamboo rats to ostriches, in crowded stalls. That raised concerns that the virus might have leaped from an animal, possibly a bat, to humans.

After isolating the virus from patients, Chinese scientists on Jan. 10 posted online its genetic sequence. Because companies that work with messenger RNA don’t need the virus itself to create a vaccine, just a computer that tells scientists what chemicals to put together and in what order, researchers at Moderna, BioNTech, and other companies got to work.

A pandemic loomed. The companies’ focus on vaccines could not have been more fortuitous.

Moderna and BioNTech each designed a tiny snip of genetic code that could be deployed into cells to stimulate a coronavirus immune response. The two vaccines differ in their chemical structures, how the substances are made, and how they deliver mRNA into cells. Both vaccines require two shots a few weeks apart.

The biotechs were competing against dozens of other groups that employed varying vaccine-making approaches, including the traditional, more time-consuming method of using an inactivated virus to produce an immune response.

Moderna was especially well-positioned for this moment.

Forty-two days after the genetic code was released, Moderna’s CEO Bancel opened an email on Feb. 24 on his cellphone and smiled, as he recalled to the Globe. Up popped a photograph of a box placed inside a refrigerated truck at the Norwood plant and bound for the National Institute of Allergy and Infectious Diseases in Bethesda, Md. The package held a few hundred vials, each containing the experimental vaccine.

Moderna was the first drug maker to deliver a potential vaccine for clinical trials. Soon, its vaccine became the first to undergo testing on humans, in a small early-stage trial. And on July 28, it became the first to start getting tested in a late-stage trial in a scene that reflected the firm’s receptiveness to press coverage.

The first volunteer to get a shot in Moderna’s late-stage trial was a television anchor at the CNN affiliate in Savannah, Ga., a move that raised eyebrows at rival vaccine makers.

Along with those achievements, Moderna has repeatedly stirred controversy.

On May 18, Moderna issued a press release trumpeting “positive interim clinical data.” The firm said its vaccine had generated neutralizing antibodies in the first eight volunteers in the early-phase study, a tiny sample.

But Moderna didn’t provide any backup data, making it hard to assess how encouraging the results were. Nonetheless, Moderna’s share price rose 20% that day.

Some top Moderna executives also drew criticism for selling shares worth millions, including Bancel and the firm’s chief medical officer, Tal Zaks.

In addition, some critics have said the government has given Moderna a sweetheart deal by bankrolling the costs for developing the vaccine and pledging to buy at least 100 million doses, all for $2.48 billion.

That works out to roughly $25 a dose, which Moderna acknowledges includes a profit.

In contrast, the government has pledged more than $1 billion to Johnson & Johnson to manufacture and provide at least 100 million doses of its vaccine, which uses different technology than mRNA. But J&J, which collaborated with Beth Israel Deaconess Medical Center’s Center for Virology and Vaccine Research and is also in a late-stage trial, has promised not to profit off sales of the vaccine during the pandemic.

Over in Germany, Sahin, the head of BioNTech, said a Lancet article in January about the outbreak in Wuhan, an international hub, galvanized him.

“We understood that this would become a pandemic,” he said.

The next day, he met with his leadership team.

“I told them that we have to deal with a pandemic which is coming to Germany,” Sahin recalled.

He also realized he needed a strong partner to manufacture the vaccine and thought of Pfizer. The two companies had worked together before to try to develop mRNA influenza vaccines. In March, he called Pfizer’s top vaccine expert, Kathrin Jansen.

“I asked her if Pfizer was interested in teaming up with us, and she, without any discussion, said, ‘Yes, we would love to do that,’” Sahin recalled.

Philip Dormitzer, chief scientific officer for viral vaccines at Pfizer, said developing a coronavirus vaccine is “very much in Pfizer’s comfort zone as a vaccine company with multiple vaccine products.”

Pfizer has about 2,400 employees in Massachusetts, including about 1,400 at its Andover plant, one of three making the vaccine for the New York-based company in the U.S.

Pfizer, through its partnership with BioNTech, isn’t taking any money upfront from the government. Rather, the federal government will pay the partners $1.95 billion for at least 100 million doses if the vaccine gets approved.

Pfizer CEO Albert Bourla, who rose through the ranks after more than 25 years with the company, said in a September interview with “Face the Nation” that if the Pfizer-BioNTech vaccine fails, his company will absorb the financial loss. He said Pfizer opted not to take government funding up front to shield the drug giant from politics.

“I wanted to liberate our scientists from any bureaucracy,” he said. “When you get money from someone, that always comes with strings.”

Top executives at Pfizer also have sold far less stock compared to Moderna since the pandemic began.

BioNTech executives haven’t sold any shares since the company went public last year, according to Securities and Exchange Commission records. Still, the soaring share prices of BioNTech and Moderna have made both Sahin and Bancel billionaires, according to Forbes.

Some experts worry about injecting the first vaccine of this kind into hundreds of million of people so quickly.

“You have all these odd clinical and pathological changes caused by this novel bat coronavirus, and you’re about to meet it with all of these vaccines with which you have no experience,” said Paul Offit, an infectious disease expert at Children’s Hospital of Philadelphia and an authority on vaccines.


Blood samples from volunteers participating in Moderna’s Phase 3 Covid-19 vaccine trial wait to be processed in a lab at the University of Miami Miller School of Medicine. 
Taimy Alvarez / AP

Several other drug makers have also developed experimental mRNA vaccines for the coronavirus, but are not as far along, including CureVac, another German biotech, and Translate Bio, which has partnered with the French vaccine giant Sanofi Pasteur.

Pfizer began its late-stage trial on July 27 — the same day as Moderna — with the first volunteers receiving injections at the University of Rochester. It announced its promising early results from that trial on Monday, and hopes to have sufficient data this month to seek emergency use authorization of the vaccine for at least some high-risk people.

Moderna may not be far behind. Its spokesperson Ray Jordan said Monday that executives suspected Pfizer would release some preliminary late-stage trial data before Moderna, in part because of the dosing schedule of the rival vaccines. Recipients of Pfizer’s vaccine get two doses three weeks apart, while recipients of Moderna’s get two doses four weeks apart.

Striking a magnanimous note, he described Pfizer’s news as “an important step for mRNA medicine.”

“We’ve said that the world needs more than one Covid-19 vaccine,” Jordan said. “We remain on track.”

Mark Arsenault of the Globe staff contributed reporting.

Damian Garde covers biotech from New York for STAT. He spent four years covering drug development at FierceBiotech, and previously wrote for Patch.com and the Albuquerque Journal. Damian spends his free time watching movies and shouting at the New York Knicks through screens of various sizes.

Jonathan Saltzman has worked at the Boston Globe since 2002 and currently covers biotechnology and the life sciences. He previously covered the federal and state courts and then spent six years on the Spotlight Team. He was part of a team that won a George Polk Award in 2012 for a series on the state’s unusually high rate of acquittal at bench trials for drunk driving. He was also a runner-up for other awards, including a Pulitzer Prize and Goldsmith Prize for Investigative Reporting, for a series of stories about dangerous off-campus housing for college students in Boston. Saltzman, a graduate of Brooklyn College, has worked at the Providence Journal, USA Today, the Rochester Democrat & Chronicle, and the Poughkeepsie Journal. He also co-hosted a daily magazine show for the NPR station in Rhode Island. He lives in Providence.
Arizona and Wisconsin: How Indigenous Voters Helped Swing the 2020 Election

Despite voter suppression and a devastating pandemic, Native American voters made the difference in Biden’s winning margin in Arizona and Wisconsin. While Indigenous voters are not monolithic, clear voting patterns can be seen across Indian Country.

November 14, 2020 Anna V. Smith HIGH COUNTRY NEWS

Navajo citizens ride to cast their votes in Arizona. “We rode to the polls to honor our ancestors who fought for the right to vote. We also rode to honor those who died from Covid-19,” Ride to the Polls organizer Allie Young., Levi Rickert/Native News Online


This year’s presidential election has been a close race in a handful of states, including Arizona. On Wednesday, for just the second time in 70 years, the Associated Press called the race for a Democratic presidential candidate, in part due to the Native vote.

Indigenous people in Arizona comprise nearly 6% of the population — 424,955 people as of 2018 — and eligible voters on the Navajo Nation alone number around 67,000. Currently, the margin between Democratic candidate Joe Biden — who has released a robust policy plan for Indian Country — and incumbent President Donald Trump is 17,131 as of Monday. (Votes continue to be counted, so numbers may change)

Precinct-level data shows that outside of heavily blue metropolitan areas like Phoenix and Tucson, which also have high numbers of Indigenous voters, much of the rural blue islands that have voted for Biden and Mark Kelly, the Democratic candidate for U.S. Senate, are on tribal lands. On some Tohono O’odham Nation precincts, Biden and Democratic vice presidential candidate Kamala Harris won 98% of the vote. As of Nov. 9, the three counties that overlap with the Hopi Tribe and Navajo Nation went for Biden at a rate of 57%, as opposed to 51% statewide. Voter precincts on the Navajo Nation ranged from 60-90% for Biden.

That pattern is consistent with 2016, when the rest of the state went for Trump. “Partisan groups have long ignored Native voters, including in states such as Arizona, New Mexico, North Dakota, South Dakota and Montana,” says Jordan James Harvill (Cherokee), chief of staff of the nonpartisan group VoteAmerica, which worked directly with Navajo Nation and community partners to get out the vote. “We view these voters as some of the highest-potential voters in the electorate and we’ll continue to invest in voters in Indian Country for years to come.

”Indigenous people in Arizona were hit hard by the pandemic, which was exacerbated by Republican state officials who did little to limit the spread of COVID-19 through public safety measures like required mask wearing, business closures, or adequate translations for COVID-19 resources. All this was compounded by an inadequate federal response that delayed financial relief to tribal governments.

At one point in May, the Navajo Nation had the highest ratio of COVID-19 cases in the U.S., surpassing New York City. President Jonathan Nez has criticized the Trump administration for its botched response, and the Navajo Nation has joined other tribal nations in a lawsuit over the dispersal of the funds. Recent exit polls showing how Indigenous voters favored Biden overall in Arizona also showed the pandemic response to be the most important issue on their minds.

In the weeks before the election, several Navajo citizens filed suit against the state of Arizona over the deadline for mail-in ballots. Pointing to the myriad challenges Indigenous communities face with vote-by-mail, they asked the court to allow ballots to be postmarked — instead of received — by 7 p.m. on Election Day. They lost the case, but because of efforts by groups like VoteAmerica, Four Directions, Rural Utah Project and the Nez administration, counties like Apache County, which overlaps the Navajo Nation and Hopi Tribe, saw 116% voter turnout compared to the 2016 election. (Votes are still being counted, so total numbers and percentages are likely to change.)

On the Tohono O’odham Nation, which spans Pima, Maricopa and Pinal counties, most precincts were above 90% for Biden, according to a statewide map pulled together by ABC15 Arizona. Throughout the Trump administration, O’odham citizens and the tribal government have been vocal in their opposition to the border wall, which Trump has forced through without tribal consultation, even as it severs the landscape and destroys ancestral O’odham sites. Those high numbers were repeated throughout precincts covering the lands of the Hualapai, Havasupai, White Mountain Apache, Gila River, San Carlos Apache, Pascua Yaqui, Cocopah and Colorado River tribes, generally within the range of 70-90% for Biden.

Indigenous voters are by no means a monolith, and the majority of Indigenous people live in urban areas, which makes it likely that many more voted in metro areas and therefore don’t appear in voting data from tribal lands. (In fact, a survey done by a coalition of Indigenous organizations called Building Indigenous Power showed that Indigenous voters on reservations were less likely to vote compared to those in the city or small towns.) Still, clear voting patterns can be seen across Indian Country:

In Montana, though the state went for Trump overall, counties overlapping with the reservations of the Blackfeet Nation, Fort Belknap Tribes, the Crow Tribe and Northern Cheyenne Tribe went blue. The divides were often stark; Glacier County, encompassed by the Blackfeet Nation, went for Biden by 64%, the highest in the entire state, while the neighboring county voted for Trump by 75%. The Native vote in Montana has made the difference before, when Indigenous voters helped Sen. Jon Tester, a Democrat who has advocated for Indian Country in legislation regarding water settlements, missing and murdered Indigenous women, and tribal recognition, get elected the last three terms in often-close races.

Wisconsin, a closely watched swing state, went narrowly for Biden by around 20,500 votes. There, the Indigenous population is 90,189 people as of 2018. Wisconsin counties overlapping the lands of the Bad River Band of Lake Superior Chippewa, the Menominee Tribe and the Stockbridge-Munsee Band of Mohicans show that voters there helped tip the count to a Democratic majority. Menominee County, which overlaps the Menominee Tribe’s reservation, voted for Biden 82%, compared to the state as a whole at 49.4%.

South Dakota went for Trump by 61% — except on tribal lands. Counties overlapping the lands of the Standing Rock Sioux, Cheyenne River Sioux, Oglala Sioux, Rosebud Sioux and Crow Creek tribes went for Biden. In Oglala Lakota County, which overlaps with the Oglala Sioux Tribe’s Pine Ridge reservation, Biden won with 88%. In Todd County, which overlaps the Rosebud Sioux Reservation, Biden won 77% of the vote.

Additionally, Indigenous candidates did well: A historic six Native candidates will be heading to the U.S. Congress next term, New Mexico has made history by becoming the second state after Hawaii whose delegation to the U.S. House of Representatives will now be made up entirely of women of color, two of whom are Native. That’s in addition to dozens of Indigenous candidates elected to state and local offices, 11 of which were elected to state office in Arizona.

As the 2020 election comes to a close, James Harvill says this election illuminates the importance of the Native vote, which is likely to only grow because of an increasing young population aging into the electorate and a strong level of community support. “When we’re looking on to the next several years, we’re going to see that Native American voters become one of the defining members of the electorate, much like we’re seeing of Latinx and Black voters.”

[Anna V. Smith is an assistant editor for High Country News. Email us at editor@hcn.org or submit a letter to the editor. Follow Anna Smith on Twitter @annavitoriasmith.]

SEE

THIRD WORLD USA

Weakening Economy, Widespread Hardship Show Urgent Need for Further Relief
The economy remains in a deep hole, with unemployment and underemployment far above pre-pandemic levels.

November 15, 2020 Chad Stone, Claire Zippel, Alicia Mazzara, Catlin Nchako, Arloc Sherman CENTER FOR BUDGET AND POLICY PRIORITIES


,


Policymakers returning to work after the election must redouble their efforts to negotiate a robust relief package to address the critical health and economic challenges facing the nation. With COVID-19 still not under control — in fact, cases are spiking in many parts of the country — and the economic recovery slowing, additional well-designed relief measures are vital to relieving hardship and promoting a stronger recovery. Relief measures enacted earlier this year have mitigated hardship, but they had significant gaps; for example, the SNAP increase in the Families First Act of March left out the poorest 40 percent of SNAP households, including at least 5 million children. The relief measures are also temporary. The $600-per-week federal supplement to unemployment insurance (UI) benefits expired at the end of July and other UI measures will expire at the end of December."RELIEF MEASURES ENACTED EARLIER THIS YEAR HAVE MITIGATED HARDSHIP, BUT THEY HAD SIGNIFICANT GAPS."
Economy Still in Deep Hole

Despite economic growth and labor market improvements since the plunge in economic activity and surge in unemployment in March and April, the economy remains in a deep hole, with unemployment and underemployment far above pre-pandemic levels.
Economic Recovery Losing Momentum

The recovery in economic activity that began in May has lost momentum over the past several months. The onset of COVID-19 produced a sharp contraction in economic activity beginning in March that left real (inflation-adjusted) GDP 10.1 percent lower in the second quarter of 2020 than at the end of 2019. A partial rebound in the third quarter still left GDP 3.5 percent lower than at the end of 2019; by comparison, the deepest GDP hole in the Great Recession was in the second quarter of 2009, when real GDP was 4.0 percent below its level at the start of the recession.[1] Official GDP data are reported only on a quarterly basis, but unofficial estimates suggest that GDP has grown little after rising sharply in May.[2]

Improvements in the labor market have slowed as well. Like GDP, nonfarm payroll employment plunged in March and April; after a partial rebound in May and June, the pace of job creation has slowed for five consecutive months. Total payroll employment in October was 10.1 million jobs below its February level, with 1.3 million of that jobs gap due to state and local government job losses, many in education. (See Figure 1.) The lack of affordable and safe child care likely is also contributing to suppressing women’s labor force participation.

Figure 1



In the private sector, most job losses have occurred in industries that pay low average wages, where a disproportionate number of workers are people of color. CBPP analysis[3] dividing industries into three groups by average wages, with roughly the same number of jobs in each group as of February, finds that the low-wage group accounted for 52 percent of the jobs lost from February to October. Jobs were down almost twice as much in the low-wage industries (10.7 percent) as in medium-wage industries (5.9 percent) and almost three times as much as in high-wage industries (3.6 percent). The shares of Black, Latino, and immigrant workers in the lowest-wage group of industries exceed their shares of the overall population.

As growth has slowed and the job market has flagged, unemployment spells have lengthened. In the last three months, the number of people who have been looking for work for 27 weeks or longer has grown from 1.5 million to 3.6 million, and increasing numbers of people will exhaust their eligibility for unemployment insurance in coming months. The loss of the $600-a-week federal unemployment benefit supplement has taken purchasing power out of the economy, and people exhausting their benefits will take out more.

The official unemployment rate, which spiked to 14.7 percent in April, has come down to 6.9 percent in October. Although Black and Latino[4] unemployment rates had fallen to historic lows before the crisis — due largely to the longest (128-month) economic expansion in U.S. history — they exceeded the white rate even then. All rates rose sharply in the recession and remained high in October, but the increase since February has been larger for Black and Latino workers (5.0 and 4.4 percentage points, respectively) than for white workers (2.9 percentage points). Black and Latino workers also continued to have a much higher unemployment rate in October than white workers.

These patterns have endured in recessions and recoveries alike and are rooted in this nation’s history of structural racism, which curtails job opportunities for Black people through policies and practices such as unequal school funding, mass incarceration, and hiring discrimination. Black workers tend to be “the last hired and first fired.” High unemployment rates for Latino people, which also consistently exceed the white rate, reflect many of the same barriers to opportunity.

The unemployment rate is an incomplete measure of joblessness because it only includes people who are actively looking for work (or have been laid off but are subject to recall to their former jobs). It doesn’t include people who want a job but haven’t been looking due to the lack of job opportunities. The prime-age employment-to-population ratio — which measures the share of the population aged 25-54 with a job — doesn’t have that shortcoming, and it tells a similar story of large, continuing racial disparities. The employment-to-population ratio was lower for Black and Latino workers than for white workers when the recession started and has fallen more for them since then: by 5.3 percentage points for Black workers and 5.0 percentage points for Latino workers, versus 3.4 percentage points for white workers. (See Figure 2.)

Figure 2


Poverty Rising as Relief Ends

With the end of the CARES Act’s major relief provisions (the one-time stimulus payments of $1,200 per adult and $500 per child and the $600-a-week unemployment insurance supplement that expired on July 31), more families are falling below the poverty line, a number of studies suggest.

A recent Department of Health and Human Services (HHS) report projects that the crisis will push 10 million people, including nearly 4 million children, below the monthly poverty line in late 2020.[5] This will drive the poverty rate — which was 10.5 percent in 2019 — up to an estimated 13.6 percent. Poverty is rising for all races, the study says, but Black and Latino poverty rates started higher than the white rate in 2019 and are rising faster. (See Figure 3.)

Two other research teams, one from Columbia University[6] and one based in part at the University of Chicago,[7] both found that poverty rose by about 4 million people from June to August after the expiration of the supplemental unemployment benefits. Like the HHS study, both of these studies also found that the economic crisis has widened racial gaps in poverty.

Figure 3


After Great Recession, Prematurely Ending Relief Slowed Recovery

The slowing of the economy and rise in poverty highlight one of the most important lessons from the Great Recession a decade ago: policymakers must not end stimulus and relief measures prematurely. While the Great Recession measures were substantial and prevented an even more severe recession, they ended too soon and were insufficient to promote a recovery that was both rapid and robust. The protracted period of high unemployment and underemployment after the economy began growing again in June 2009 continued to impose hardship and hurt long-term growth.[8] The unemployment rate did not drop below 5.5 percent until 2015, six years into the recovery. Similarly, the measures taken so far to combat the economic fallout from the coronavirus have been substantial and kept things from being even worse, but more is needed to give the recovery added momentum.
Substantial Hardship Amidst COVID-19 Recession and Uneven Recovery

With the economy severely weakened by the sharp rise in unemployment during the pandemic, millions of adults report that their household doesn’t get enough to eat, isn’t caught up on rent, or is having trouble paying for usual household expenses. We can track the extent of this hardship thanks to the Household Pulse Survey, which the Census Bureau launched in April to provide nearly real-time data on how the unprecedented health and economic crisis is affecting the nation.

Households with children face especially high rates of hardship, which research has shown can have serious effects on children’s long-term health and financial security."HARDSHIPS HAVE FALLEN HARDEST ON BLACK AND LATINO ADULTS, WHO SUFFERED THE WORST JOB LOSSES IN THE PANDEMIC AND ENTERED THE PANDEMIC WITH THE MOST DAUNTING ECONOMIC BARRIERS."

Although the nation has a large stake in helping to ensure that all people can meet their basic needs — whether they are struggling to quarantine safely, employed at essential jobs, supporting the economy as consumers, or looking out for their neighbors — the burden of the economic crisis has not been shared equally. Hardships have fallen hardest on Black and Latino adults, who suffered the worst job losses in the pandemic and entered the pandemic with the most daunting economic barriers. These disproportionate impacts reflect harsh, longstanding inequities — often stemming from structural racism — in education, employment, housing, and health care that the current crisis is exacerbating.
Hardship Is Widespread

Nearly 24 million adults — 10.9 percent — reported that their household sometimes or often didn’t have enough to eat in the last seven days, according to Pulse data collected October 14-26. This was far above rates reported before the pandemic: 3.7 percent of adults reported that their household had “not enough to eat” at some point over the full 12 months of 2019, according to earlier survey data.[9]

Millions of Americans are having difficulty paying rent. At least 11.5 million adults living in rental housing — nearly 1 in 6 adult renters — weren’t caught up on rent in late October, we estimate from Pulse data adjusted for the number of adults who didn’t respond to this question in the survey.[10]

Nearly 80 million adults — 1 in 3 — reported it was somewhat or very difficult for their household to cover usual expenses such as food, rent or mortgage, car payments, medical expenses, or student loans in the past seven days, according to data collected in late October. While we don’t have comparable data from before the pandemic, the data noted above on rising levels of food hardship over pre-pandemic rates indicate that economic insecurity has increased.
Hardship Especially Severe Among People of Color

The pandemic and economic fallout have inflicted widespread hardship, especially among Black and Latino adults. Due to inequities driven by racism and discrimination, workers in these communities disproportionately work in low-paid jobs that have been heavily affected by the crisis, and they tend to have fewer assets to fall back on in hard times. Hardship rates are also high for American Indians and Alaska Natives, Pacific Islanders (including Native Hawaiians), and people who identify with more than one race (unfortunately, Pulse shows these groups only in combination, not separately). According to the latest Pulse survey:
Black and Latino adults were more than twice as likely as white adults to report that their household didn’t get enough to eat: 19 percent and 18 percent, respectively, compared to 8 percent of white adults. (Among Asian adults, 6 percent report their household didn’t get enough to eat.)
Renters of color were more likely to report that their household wasn’t caught up on rent: 26 percent of Black renters, 18 percent of Asian renters, and 18 percent of Latino renters said they weren’t caught up on rent, compared to 10 percent of white renters.
Half of Black adults (50 percent) and nearly half of Latino adults (47 percent) reported difficulty paying for usual household expenses, compared to 27 percent of Asian adults and 26 percent of white adults.
Households With Children Face Even Higher Hardship Rates

Households with children face especially high hardship rates. Fourteen percent of parents and other adults living with children reported that the household didn’t get enough to eat, compared to 9 percent of adults in households without children. (See Figure 4.) And 8 to 14 percent[11] of adults living with children reported that the children didn’t get enough to eat because they couldn’t afford it. Children who don’t get enough to eat are at risk of worse developmental, health, and even economic outcomes down the road. [12]

Similarly, renters who live with children were twice as likely to report they weren’t caught up on rent: 22 percent, compared to 11 percent for renters without children. Households unable to pay rent could face housing instability, homelessness, and eviction in the coming months. The forced moves that result from evictions are particularly harmful for children and can disrupt their social, physical, and academic development.[13]

Figure 4



In addition, adults in households with children were more likely to report difficulty paying for usual expenses: 40 percent, compared to 29 percent for households without children. Financial hardship can have serious effects on children’s long-term health and education, research shows.[14]

More detailed data from the Pulse survey collected September 30-October 12 allow a closer look at hardship among children. (These figures are approximations; the Pulse Survey was designed to provide data on adult well-being, not precise counts of children.)
Between 7 and 11 million children live in a household where children didn’t eat enough because the household couldn’t afford it.
Children in renter households face high rates of food hardship. Among children living in rental housing, 1 in 4 live in a household that didn’t have enough to eat and 4 in 10 live in a household that either didn’t get enough to eat or wasn’t caught up on rent.
An estimated 42 percent of children live in households that have trouble covering usual expenses. They include 61 percent of children in Black households and 49 percent of children in Latino households, as well as 34 percent of children in white households. (The survey asks the race of the adult respondent, not the children.) (See Figure 5.)

Figure 5


End Notes

[1] GDP growth rates for a given quarter are normally reported at an annualized rate, i.e., the compounded growth rate if the same quarterly rate were sustained for four quarters. Real GDP fell at an annualized rate of 5.0 percent in the first quarter of 2020 and 31.4 percent in the second quarter, before rising at a 33.1 percent annualized rate in the third quarter. But because GDP was so much lower in the second quarter than at the end of 2019, the third-quarter growth was much smaller in dollar terms than the second-quarter drop, leaving GDP in the third quarter 3.5 percent lower than at the end of 2019.

[2] For example, see Jason Furman, https://twitter.com/jasonfurman/status/1321903462875975680.

[3] The analysis, which was first done when the April jobs data came out, is described more fully in https://www.cbpp.org/blog/people-already-facing-opportunity-barriers-hit-hardest-by-massive-april-job-losses.

[4] Federal surveys generally ask respondents whether they are “of Hispanic, Latino, or Spanish origin.” This report uses the term “Latino.”

[5] Suzanne Macartney et al., “Projections of Poverty and Program Eligibility during the COVID-19 Pandemic,” Department of Health and Human Services, October 2020, https://aspe.hhs.gov/system/files/pdf/264151/poverty-program-eligibility-covid.pdf.

[6] Zachary Parolin et al., “Monthly Poverty Rates in the United States during the COVID-19 Pandemic,” October 15, 2020, https://static1.squarespace.com/static/5743308460b5e922a25a6dc7/t/5f87c59e4cd0011fabd38973/1602733471158/COVID-Projecting-Poverty-Monthly-CPSP-2020.pdf.

[7] Jeehoon Han, Bruce D. Meyer, and James X. Sullivan, “Real-time Poverty Estimates During the COVID-19 Pandemic,” October 18, 2020, http://povertymeasurement.org/wp-content/uploads/2020/10/Real-time-Poverty-Estimates-through-September-2020-1.pdf.

[8] Chad Stone, “Fiscal Stimulus Need to Fight Recessions: Lessons from the Great Recession,” CBPP, April 16, 2020, https://www.cbpp.org/research/economy/fiscal-stimulus-needed-to-fight-recessions.

[9] The pre-pandemic figures are from other surveys that are not precisely comparable to Pulse, but the increase appears much too large to simply reflect methodological differences between surveys. See Brynne Keith-Jennings, “Food Need Very High Compared to Pre-Pandemic Levels, Making Relief Imperative,” CBPP, September 10, 2020, https://www.cbpp.org/blog/food-need-very-high-compared-to-pre-pandemic-levels-making-relief-imperative.

[10] The latest Pulse survey estimates that 8.4 million adults live in households not caught up on rent. To adjust for non-response in the survey, we apply the share of responding renters in Pulse not caught up on rent (15.7 percent) to the total number of adult renters in the March 2020 Current Population Survey (73 million) to calculate an adjusted estimate. These figures likely understate the percentage and number of people struggling to pay rent; a large share of survey respondents did not answer the housing questions in the Pulse survey, and this “non-response” was more frequent among groups that struggle to afford rent. For details, see “Tracking the COVID-19 Recession’s Effects on Food, Housing, and Employment Hardships,” CBPP, updated November 9, 2020, https://www.cbpp.org/research/poverty-and-inequality/tracking-the-covid-19-recessions-effects-on-food-housing-and.

[11] The 8-14 percent range reflects the different ways to measure food hardship in the Household Pulse Survey.

[12] Brynne Keith-Jennings, “Boosting SNAP: Benefit Increase Would Help Children in Short and Long Term,” CBPP, July 30, 2020, https://www.cbpp.org/blog/boosting-snap-benefit-increase-would-help-children-in-short-and-long-term.

[13] Sonya Acosta, Anna Bailey, and Peggy Bailey, “Extend CARES Act Eviction Moratorium, Combine With Rental Assistance to Promote Housing Stability,” CBPP, July 27, 2020, https://www.cbpp.org/research/housing/extend-cares-act-eviction-moratorium-combine-with-rental-assistance-to-promote.

[14] Ajay Chaudry and Christopher Wimer, “Poverty is Not Just an Indicator: The Relationship Between Income, Poverty, and Child Well-Being,” Academic Pediatrics, Vol. 16, Issue 3, April 1, 2016, https://www.academicpedsjnl.net/article/S1876-2859(15)00383-6/fulltext.

Chad Stone

Areas of Expertise:

Federal Budget

Economy

Climate Change

Immigration

Recent Work:


Weakening Economy, Widespread Hardship Show Urgent...


Jobs Report: Improvements Slowing, Jobs Hole Remains...


6 Signs That the Labor Market Remains in Deep Trouble

Claire Zippel

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New Data: Millions Struggling to Eat and Pay Rent

Alicia Mazzara

Areas of Expertise:

Housing

Funding

Housing Vouchers

Renters' Credit

Recent Work:


Weakening Economy, Widespread Hardship Show Urgent...


New Data: Millions Struggling to Eat and Pay Rent


More Relief Needed to Alleviate Hardship

Catlin Nchako

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New Data: Millions Struggling to Eat and Pay Rent


House Farm Bill Would Increase Food Insecurity and...

Arloc Sherman

Areas of Expertise:

Poverty and Inequality

Family Income Support

Recent Work:


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4 in 10 Children Live in a Household Struggling to...


New Data: Millions Struggling to Eat and Pay Rent

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