After the U.S. public health emergency ends, Pfizer plans to hike the price of the COVID-19 vaccine in the US by 400 percent.
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According to the company’s president in the United States, Angela Lukin, Pfizer intends to increase the cost of its COVID-19 vaccines in the country by up to four times after Washington’s purchase plan ends.
The US government currently offers all Americans a free COVID-19 vaccination. When the U.S. public health emergency ends, private insurance will take over as the primary source of COVID-19 vaccine coverage. The Pfizer vaccination costs the federal government about $30 each dosage. Lukin anticipates that a dose will cost between $110 and $130 when the government purchasing scheme ends.
“We are confident that the U.S. price point of the COVID-19 vaccine reflects its overall cost-effectiveness and ensures the price will not be a barrier for access for patients,” Lukin said, according to Reuters.
By the first quarter of 2023, “at the earliest,” the Pfizer executive expects the vaccine purchase to be transferred to the private sector. According to Lukin, anyone with public or private insurance will still be able to get the vaccine free of charge.
Sales of the COVID-19 vaccine generated approximately $37 billion for Pfizer in 2021, while companywide revenues increased to $81.3 billion, more than doubling. This year, the business projects revenues of between $98 billion and $102 billion.
Global Justice Now, a UK-based NGO, asserts that Pfizer’s COVID-19 shot was created by BioNTech with funding from the European Investment Bank and the German government totaling €375 million ($366 million) and €100 million ($97 million), respectively.
“We’ve let Pfizer withhold this essential medical innovation from much of the world, all the while ripping off public health systems with an eye-watering mark-up,” said Tim Bierley, a pharmaceutical campaigner at the group, according to The Guardian.
Shrinking Market, Vaccine Dangers
As fewer people receive COVID-19 vaccinations, vaccine producers will need to considerably raise prices to generate the revenue Wall Street anticipates for 2023 and the years ahead.
Many experts anticipated that the annual COVID-19 vaccination schedule would be similar to the annual flu shot schedule. Every year, 160 million flu vaccines are given out in the US. However, as more Americans are growing hesitant to receive COVID-19 doses, market size predictions have been moderated.
“The fact that you have people saying the pandemic is over doesn’t motivate people to get vaccinated,” Dr. Bruce Farber, chief of public health and epidemiology for New York hospital system Northwell Health, said to Reuters.
Concerns about the COVID-19 vaccinations’ possible negative effects, which could reduce demand, are also mounting.
Dr. Joseph A. Ladapo, Surgeon General of Florida, recently released updated recommendations on Pfizer-produced mRNA COVID-19 vaccines. The advise recommended against giving such shots to males between the ages of 18 and 39, citing an elevated risk of cardiac-related death.
In the meanwhile, Pfizer has asked the Food and Drug Administration to approve the emergency use of COVID-19 vaccination boosters for children as young as five.
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Imagine that, now that the government isn’t funding it and demand is down Pfizer is losing profits. I hope it bankrupts them.
“The Pfizer vaccination costs the federal government about $30 each dosage. Lukin anticipates that a dose will cost between $110 and $130”
If we assume the new price to be $120, this is a 4x increase, which is 300% not 400%. I see this math mistake consistently among journalists.
Of course, the increase is still significant, but let’s regain some respect for the math and accurate reporting.