Pharmaceutical sector updates
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Pfizer has raised the price of its vaccine against Covid-19 by more than a quarter and Moderna by more than a tenth in the latest EU delivery contracts, while Europe has combated supply disruptions and concerns about the side effects of competitive shots.
The groups will generate tens of billions of dollars in revenue this year, while signing new deals with countries eager to get stock for possible boosts in light of the spread of the highly contagious Delta variant.
The terms of the deals, which reached a total of 2.1 billion shots this year until 2023, were renegotiated after Phase 3 trial data showed that the two companies’ “mRNA” vaccines have higher efficiency rates than cheaper surveys conducted by Oxford / AstraZeneca and Johnson & Johnson.
The new price for a Pfizer shot was € 19.50 compared to € 15.50 previously, according to portions of the contracts seen by the Financial Times.
According to the contracts, the price of a Moderna jab was $ 25.50 per dose, compared to what people familiar with the first purchase agreement were around € 19 ($ 22.60), but lower than a previously agreed $ 28.50 because the order has grown, according to one official close to the negotiations.
The official said that the companies had used their market power and used the “usual pharmaceutical rhetoric”. . . Vaccines work to increase the ‘value’. ”
Pfizer last week raised its annual leads vaccine income by nearly a third to $ 33.5 billion, after sales of the shot nearly doubled sales in the second quarter.
CEO Albert Bourla said prices for higher-income countries were “comparable”, with middle-income countries paying about half and lower-income countries paying.
Pfizer, which shares profits with its German partner BioNTech, expects to raise prices after the pandemic is over.
The gap between the mRNA vaccine makers and their competitors will widen further next year, according to predictions made by Airfinity for the FT.
The life sciences consultant predicts that the sale of Pfizer’s lap will cost $ 56 billion, while Moderna will reach $ 30 billion as it dominates the high-income markets.
Oxford / AstraZeneca’s garbage sales are expected to rise to $ 15 billion next year at cost price and the largest vaccine supplied to low-income countries.
The EU contracts were concluded at a complicated time during the deployment of the vaccine, as it experienced problems with AstraZeneca and J&J, as health authorities investigated a suspected link between their shots and rare blood clots.
Brussels was also struggling with criticism of Austrian-led member states accusing the European Commission of ‘unfairly’ distributing vaccines, arguing that the EU system was lacking in some countries.
Officials said the commission and EU governments had agreed to pay a higher price to obtain proven supplies from European manufacturing plants. The new Pfizer price is the same as agreed earlier this year with an advance of 10m doses, officials said.
One official said staff working for Moderna were particularly “ridiculous and arrogant” in their dealings with the commission, highlighting a lack of previous experience in government matters.
Moderna, whose Covid vaccine is the first commercially approved product, did not respond to a request for comment on the details of its EU prices, but pointed to previous revelations that agreements with smaller volumes would be executed at higher prices. . He reiterated that it was aimed at providing effective and affordable vaccines to “all populations”.
The FT reported last year that Moderna initially asked buyers, including the EU, for a price of at least high double-digit dollars per course.
The commission said Brussels had reserved the right to an extra dose of 1.8 billion Pfizer vaccine “to be ready if a sparkle is needed and if we need additional vaccines in the context of variants”. Pfizer declined to comment on pricing, citing confidentiality.