Medical sector update
Sign up for myFT Daily Digest and be the first to learn about the pharmaceutical industry news.
As Europe struggles with supply disruptions and concerns about the side effects of competitors’ products, Pfizer has increased the price of its Covid-19 vaccine by more than a quarter, and increased the price of Moderna by one-tenth in the latest EU supply contract above.
These organizations will generate tens of billions of dollars in revenue this year, as they have signed new agreements with countries eager to ensure a potentially enhanced vaccine supply to deal with the spread of the highly infectious delta virus.
In the third phase of the trial data, the effectiveness of the “mRNA” vaccines of the two companies is higher than that of Oxford/AstraZeneca and Johnson & Johnson.
According to some contracts seen by the Financial Times, the new price of Pfizer injections is 19.50 euros, compared with 15.50 euros before.
According to the contract, the price of Moderna jab is US$25.50 per dose, which is higher than the approximately 19 euros (US$22.60) in the first purchase transaction that people familiar with the matter said, but lower than the previously agreed US$28.50 because of the increase in orders. Report an official close to the negotiation.
The official stated that these companies have used their market power and adopted “usual pharmaceutical rhetoric.” .. Vaccines are effective, so they add’value’. ”
Pfizer improved its annual guidance last week Vaccine income After sales almost doubled in the second quarter, sales of the product fell by nearly a third to $33.5 billion.
Chief Executive Albert Bourla stated that prices in high-income countries are “comparable”, with middle-income countries charging roughly half of the fees and low-income countries paying the costs.
Pfizer shares profits with its German partner BioNTech and expects to increase prices after the pandemic ends.
According to forecasts compiled by Airfinity for the British Financial Times, the gap between mRNA vaccine manufacturers and their competitors will further widen next year.
The life science consulting company predicts that Pfizer’s sales will reach 56 billion U.S. dollars, while Moderna’s sales will reach 30 billion U.S. dollars because they dominate the high-income market.
The vaccine produced by Oxford/AstraZeneca is priced at cost and is the largest vaccine supplied to low-income countries. Sales are expected to increase to US$15 billion next year.
The EU contract was signed at a complicated moment when the EU vaccine was launched because it faced supply problems from AstraZeneca and Johnson & Johnson, as health authorities investigated suspicious links between their vaccines and rare blood clots.
Brussels too Fight against criticism Member states led by Austria accused the European Commission of “unfair” vaccine distribution, believing that the EU system has caused supply shortages in some countries.
Officials said that the Commission and EU governments have agreed to pay higher prices to ensure that the supply of European manufacturing plants is confirmed.Pfizer’s new price is the same as the price agreed earlier this year 10m dose, The official said.
An official said that employees working for Moderna were particularly “ridiculous and arrogant” when dealing with the committee, which highlighted their previous lack of experience in government affairs.
Moderna’s Covid vaccine was its first commercially approved product. The company did not respond to a request for comment on its EU pricing details, but pointed out that the previously disclosed small-volume agreement will be executed at a higher price. It reiterated that it aims to provide “all populations” with effective and affordable vaccines.
Financial Times Reported last year Moderna initially offered buyers including the European Union a price of at least double-digit dollars for each course.
The committee stated that Brussels reserves the right to an additional 1.8 billion doses of Pfizer vaccine, “in order to be prepared when a booster injection is needed and whether we need an additional vaccine in a variant situation.” Pfizer declined to comment on pricing, citing confidentiality.