covid_M

France’s vaccine strategy: What has gone wrong ?

Macro

Summary:  France is ranked last in Bloomberg's worldwide Covid vaccine tracker with only 516 people vaccinated since the campaign vaccination started on 27 December, 2020. Confronted with harsh criticism over its strategy, the French government has recently announced its intent to accelerate the process, but it is unlikely that it will be able to reach its target of around 23-25 million people vaccinated in June - which would imply an average of 140,000 people vaccinated on a daily basis seven days a week. With France already lagging behind in distributing the vaccine and prospect of supply hurdles and logistics failures, the risk is increasing that the country will have no other choice but to enact tougher restrictions for longer that will weight on the recovery.


What is wrong with France’s vaccine strategy?

  • The supply of vaccines appears to have been mismanaged with preference for the vaccine developed by a local player, the French pharmaceutical company Sanofi, that will not be ready until the end of 2021 after interim results showed a low immune response in older adults.
  • The implementation is bottlenecked through GPs instead of setting up mass vaccination centers, like in Germany and in Israel. To make things worse, it takes about 5 to 6 days to get vaccinated due to the introduction of a slow procedure of informed consent. People first need to see their GP for a pre-visit during which they are informed of all the aspects and consequences of the vaccine, which takes about 45 minutes to one hour, then they have four days for withdrawal.
  • Due to logistics failures recently observed, especially regarding the storage at ultra-low freezing temperatures, it is estimated that roughly 25% to 30% of the 200 millions doses purchased by France could be definitively lost.

France vs Israel: Two opposing strategies

 

France

Israel

Total number of vaccination doses administered

516

1.22 MILLION

Procurement

EU VACCINE PURCHASE

LATE PURCHASE (AUGUST)

 

NATIONAL

EARLY PURCHASE (JUNE, MODERNA)

Organizational structure and decision-making

CENTRALIZED

Defense Council (President, Prime Minister and Minister of Health)

DECENTRALIZED

Koupot Holim (health organization of workers, composed of four different schemes)

The role of the leader

NOT VACCINATED YET

SETTING EXAMPLE AS FIRST ISRAELI GETTING VACCINATION

Distribution

GP MODEL (mostly)

Digital experience close to zero

VACCINODROME MODEL

Digital patient experience: appointment confirmation SMS message, online medical follow-up after vaccination etc.

What should be done ?

Strangely, France’s vaccination strategy has mostly consisted in pandering to anti-vax. There is undeniably a strong distrust in vaccination in France, which reflects a broader problem of confidence in the health system after a series of scandals that have left a lasting stain on its reputation over the past thirty years. A study from IPSOS released in October showed the extend of the problem: only 54% of the population is willing to get vaccinated against Covid versus 87% in India and 67% in Germany. To get around this problem, the government opted for a slow protocol that will be costly economically and that is unlikely to increase public confidence in the vaccine. In fact, it is even the opposite that is currently happening. The slow rollout of the vaccine reinforces the idea, among anti-vax, vaccine-skeptics and conspirators, that there is something to hide or at least that the authorities are afraid of potential unexpected side-effects of the virus. Economically, this strategy, that is unique among developed countries, will be very costly. Assuming that France manages to reach its June vaccination target, which is not enough to achieve herd immunity, its means that some forms of restrictions will probably prevail at least until September/October this year. This is the optimistic scenario. The pessimistic scenario is that France may need to resort to tougher lockdown or to extend overnight curfew if the new mutations recently discovered in the United Kingdom and in South Africa spread further in the country, reviving the specter of a new recession. The sad reality is that there is no time to waste. The longer we wait for herd immunity (which might be around 70%-75% of the total population with the new mutations according to recent studies versus prior 60%), the higher the probability for a non-segmented RNA virus evolving and rendering the vaccine ineffective. France has already lost precious weeks in the covid battle and it will certainly takes time to deal with the supply hurdles that are emerging. But by speeding up the vaccination process, via the adoption of the “vaccinodrome” model (like in Israel), and opting for a more coercive strategy, which could consists in linking the access to social benefits/tax loopholes  to the vaccination (following the example of Latin America for child vaccination), France could certainly escape faster from the pandemic mess and at lower economic cost than with the current inadequate strategy.

Disclaimer

Confidentiality and Usage:
You may not reproduce, distribute, or transmit this material or any portion thereof without prior written permission from Saxo.

Nature of Information:
The information provided herein is based on current market conditions and analysts' opinions, which may reflect personal views of the author, and are subject to change without notice. This material does not include a record of any trading prices, or an offer of, or solicitation for, or endorsement to enter into any transaction in any investment product. Any forecast on the economy, markets and economic trends of the markets provided is not necessarily indicative of the future or likely performance of the investment product subject of this material.

Responsibility and Liability:
Saxo accepts no liability for any use that may be made of these comments or for any consequences that arise from such use. Saxo does not guarantee the accuracy or completeness of any information provided and assumes no liability for any errors, omissions, losses, or damages resulting from the use of this information.

The information provided in this material is solely for information only. It is intended for general circulation and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Accordingly, it should not be relied on or treated as a substitute for specific advice concerning specific situations of any person. Please seek advice from a financial adviser regarding the suitability of any investment product taking into account your specific investment objectives, financial situation or particular needs before you make a commitment to purchase an investment product. In the event that you choose not to seek advice from a financial adviser, you should consider whether any investment product mentioned in this publication is suitable for you.

Notwithstanding the above, insofar as any information provided herein contains research analyses or reports concerning any investment product authored by any foreign research house and is issued or promulgated to a person in Singapore who is not an accredited investor, expert investor, and/or institutional investor, Saxo Capital Market Pte. Ltd. accepts legal responsibility for the contents of this material to the extent required by law. Recipients of such material are to contact Saxo Capital Markets Pte. Ltd. in respect of any matters arising from, or in connection with, this material.

Risk Disclosure:
Trading in investment products involve significant risk, including the risk of losing your entire investment. Historical returns are not a guarantee of future returns. Prices can both rise and fall, and there is a risk that you will not get back the money you invested.

Conflicts of interest:
The author may hold positions in the investment products mentioned. The author does not own positions in the underlying investment product exceeding 0.5% of its market capitalisation, save as otherwise declared. The author is not permitted to trade the mentioned investment products within the first 24 hours after the publication of this article.

Saxo maintains partnerships with companies that compensate Saxo for promotional activities conducted on its platform. Additionally, Saxo has agreements with certain partners who provide retrocession contingent upon clients purchasing specific investment products offered by these partners. While Saxo receives compensation from these partnerships, all content is conducted with the intention of providing clients with valuable options and information.

Publication details:
If any listed companies are the subject of the material, the content has not been submitted to the companies in question prior to publication.

Please refer to our full disclaimer and notification on non-independent investment research for more details.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Saxo is part of the J. Safra Sarasin Group.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.