November 27, 2022

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Pfizer executives: the price of COVID-19 vaccine will rise after the epidemic

Pfizer executives: the price of COVID-19 vaccine will rise after the epidemic

 

 

Pfizer executives: the price of COVID-19 vaccine will rise after the epidemic. According to a report on the Fierce Pharma website, a Pfizer executive said that the price of Pfizer’s COVID-19 pneumonia vaccine will increase significantly after the epidemic. Some analysts speculate that vaccine prices may increase by 3-4 times.

Pfizer executives: the price of COVID-19 vaccine will rise after the epidemic

 

The report pointed out that Pfizer’s Chief Financial Officer Frank D’Amelio said in an interview with Bank of America Merrill Lynch analysts that after the epidemic is brought under control in the future, the company will make more profits from the COVID-19 vaccine products. The current price of Pfizer’s vaccine is $19.5 per dose, which is based on a government cooperation agreement during the pandemic. The company’s other vaccine products are all priced at US$150 or US$175. For example, in the US private market, a dose of 13-valent pneumonia vaccine sells for more than US$200.

D’Amelio believes that Pfizer used special pricing rules during the epidemic, and it also paid a lot of costs for materials, labor, factory management fees, transportation, and distribution. Therefore, after the epidemic, Pfizer will increase product pricing, increase factory output, and reduce production costs. Generally speaking, once we get rid of the epidemic, profit margins will have a great opportunity to improve.

Pfizer has stated that it expects sales of the COVID-19 vaccine to reach US$15 billion this year. If a higher price is set after the epidemic, it will continue to obtain very considerable profits in the next few years. Especially after the emergence of virus mutants, people’s demand for vaccines will be higher.

Another representative of Pfizer said that now is an extraordinary period, and the price of vaccines will take into account the global health emergency to ensure that all countries can get the vaccine widely. During supply negotiations with governments, the company took into account the goals of quantity and fair distribution, and adopted a tiered pricing approach so that poorer countries can pay less to obtain vaccines. Future pricing will also continue to balance many factors, including based on vaccine value, availability, affordability, and sustainability.

Bernstein analyst Ronny Gal commented that a report by the German Süddeutsche Zeitung stated that when Pfizer contacted European officials last summer, it hoped to sell 500 million doses at a price of 27 billion euros, that is, 54 euros per dose. In the end, European officials negotiated the price to 15.5 euros per dose, but Gal believes that 54 euros may be Pfizer’s idea of ​​pricing after the epidemic, that is, a 3-4 times increase.

 

 

(source:internet, reference only)


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