Author: Clark Howell
American pharmaceutical powerhouse Pfizer says a single dose of its off-demand Covid-19 Vaccine will cost $130 on the market once its government-funded contract to disburse its vaccine freely ends.
Pfizer Says Covid-19 Vaccine Will Cost Up To $130 Per Dose
Pfizer plans to quadruple the current price of its Covid-19 vaccine to $130 a dose upon expiration of the United States government’s purchase program, which delivers the drug cost-free to both American citizens & non-citizens alike.
But, the pharmaceutical company expects the vaccine – to be readily available for individuals with private or government-sponsored health insurance.
Pfizer executives anticipate commercial trading of its vaccine to begin in 2023, depending on when the U.S government starts shutting down its operations to purchase and distribute the medicine nationwide.
Why Is Pfizer Hiking
Earlier this week, analysts from Wall Street cited the price hikes as a direct result of the ongoing weak demand for Covid-19 vaccines in the country.
This scenario forces vaccine makers to hike medicine prices to reach revenue forecasts for next year and beyond.
However, a spokesperson has revealed the company will be offering an income-based assistance program for legal U.S residents without insurance.
According to the CDC, Pfizer has distributed over 375 million vaccine doses around the United States. This figure excludes the 12 million doses approved by the government earlier this year.
In 2021 alone, the vaccine generated $36Bn in revenue for the company, which was the company’s top-performing drug.
At the moment, the U.S government pays Pfizer and its German associate, BioNTech SE, about $30 per dose.
What Does The New Hike Mean For America’s Covid Battle
During the first six weeks of the 2021 vaccination program, about 23 million U.S residents took their third shots even though only aged and immunocompromised residents were eligible.
In contrast, during the first six weeks of the newest rollout, only 14 million residents received their booster shots.
Since the last booster rollout, the rate of people who received the shots has significantly decreased compared to the rate of eligible persons, which has gradually increased over the year.
Pfizer believes the current Covid-19 market to be no more significant than the annual flu shot market for adults and that the pediatric would require more time to build, given the number of shots distributed up till now.
The new cost of Pfizer’s double-dose vaccine already makes it more expensive for paying individuals than the recommended annual flu vaccine. Flu shots, as we call them, range nothing below $50 and above $95.
As for low-income families, Pfizer those with access to health coverage and insurance like Medicaid and Medicare to continue receiving the medications for free. Under the U.S government’s ACA (Affordable Care Act), insurers must cover several essential vaccines without demanding any out-of-pocket expenses.