Hyderabad: Bharat Biotech, the Hyderabad-based COVID vaccine maker, said on Tuesday that the supply price of its vaccine Covaxin to the central government at Rs 150 per dose is not sustainable in the long run. Hence, a higher price in private markets is required to offset its operational costs.
The Centre's supplying price is pushing the pricing structure for the private sector upward, it added. "Fundamental business reasons ranging from low procurement volumes, high distribution costs and retail margins among few others contribute to higher pricing of Covaxin,'' Bharat Biotech said while justifying the higher price when compared to other COVID-19 vaccines available for the private sector in India.
"The supply price of Covaxin to the government of India at Rs 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," the company said in a statement.
The supply price of COVAXIN to Govt of India at Rs 150/dose, is a non-competitive price & clearly not sustainable in the long run. Hence a higher price in private markets is required to offset part of the costs: Bharat Biotech
— ANI (@ANI) June 15, 2021
“Bharat Biotech hereby communicates the following message regarding the pricing of COVAXIN for Central Government, State Governments, and Private Hospitals, we believe it is pertinent to place facts on record for the Media and the public at large so that they can understand and appreciate our efforts.
Vaccine pricing depends on numerous factors: At the outset, one must remember that the pricing of vaccines and other pharmaceutical products heavily relies on a series of factors; the cost of goods & raw materials, product failures, at risk product development outlays, product overages, the entire capital expenditure for setting up sufficient manufacturing facilities, sales and distribution expenses, procurement volumes and commitments besides other regular business expenditures,’’ the firm said in a statement.
Bharat Biotech has so far invested over Rs 500 crores at risk from its own resources for product development, clinical trials and setting up of manufacturing facilities for Covaxin, it added.