COVAXIN VACCINE AT ₹150/DOSE NOT SUSTAINABLE, SAYS BHARAT BIOTECH
NEW DELHI: Bharat Biotech has not sought indemnity from the Union government against its Covid-19 vaccine-related adverse events, the company said in a statement on Tuesday, while explaining the vaccine pricing and procurement.
The Hyderabad-based pharma company said the central government directed it to keep supplies to the private sector under 10%.
“As directed by the Government of India, less than 10% of our total production of Covaxin to date has been supplied to private hospitals, while most of the remaining quantity was supplied to state and central governments. In such a scenario, the weighted average price of Covaxin for all supplies realised by Bharat Biotech is less than ₹250 / dose,” Bharat Biotech said in a statement.
It also said that since the supply price of their vaccine to the Government of India is ₹150/ dose, it is a non-competitive price and clearly not sustainable in the long run. Hence, a higher price in private markets is required to offset part of the costs. Currently, Covaxin is sold to states at ₹400 per dose and at ₹1,200 per dose to private hospitals and institutions, which is significantly higher.
The firm has so far invested over ₹500 crore at risk from its own resources for product development, clinical trials and setting up of manufacturing facilities.
BHARAT BIOTECH
NEW DELHI: The supply price of Bharat Biotech’s COVID-19 vaccine Covaxin to the Central government at ₹150 per dose is not sustainable in the long run, the vaccine maker said on Tuesday.
Hence a higher price in private markets is required to offset part of the costs, it said in a statement. The Centre’s supplying price is pushing the pricing structure for the private sector upward, the firm said.
Fundamental business reasons ranging from low procurement volumes, high distribution costs and retail margins, among few others, contribute to higher pricing of Covaxin to the private sector, Bharat Biotech said,justifying the higher price when compared to other Covid-19 vaccines available for the private players.
Bharat Biotech is currently supplying Covaxin at ₹150 per dose to the Centre, ₹400 to the state government and ₹1,200 to private hospitals. “The supply price of Covaxin to the government of India at ₹150/dose, is a non-competitive price and clearly not sustainable in the long run.Hence a higher price in private markets is required to offset part of the costs,” it said in a statement.
As directed by the Centre, less than 10 per cent of the total production of Covaxin to date has been supplied to private hospitals, while most of the remaining quantity was supplied to State and Central Governments.
“In such a scenario the weighted average price of Covaxin for all supplies realized by Bharat Biotech is less than ₹250/dose.Going forward, approximately 75 per cent of the capacity will be supplied to State and Central Governments with only 25 per cent going to private hospitals,” Bharat Biotech said.
The firm has so far invested over ₹500 crore at risk from its own resources for product development, clinical trials and setting up of manufacturing facilities for Covaxin, it said.
The pricing of vaccines and other pharmaceutical products heavily relies on a series of factors such as the cost of goods and raw materials, product failures, at risk product development outlays and product overages, besides other regular business expenditures, the city-based company said.