COVAXIN At ₹150 Per Dose To Centre Not Sustainable In Long Run: Bharat Biotech
Mumbai: Bharat Biotech on Tuesday said, “The supply price of COVAXIN to the Centre at ₹150 per dose, is non-competitive and clearly not sustainable in the long run.” Hence, a higher price in private markets is required to offset its operational costs.
It states that the central supply price is driving the price structure for the private sector. Bharat Biotech justified the higher price compared to other COVID-19 vaccines available to the private sector, saying, “From low purchase volume, high distribution costs and retail margins among few others contribute to higher pricing of Covaxin.”
“The Government of India supply price of Covaxin, Rs 150 per dose, is a non-competitive price and is 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.
“Bharat Biotech hereby conveys the following message regarding the pricing of COVAXIN for the Central Government, State Governments and Private Hospitals, we believe that it is appropriate to record the facts for the media and the public so that they can understand it and try our best to be able to appreciate.
Vaccine pricing depends on several factors: At the outlet, one must remember that the price of vaccines and other pharmaceutical products depends on several factors; Material and raw material costs, product failures, risk product development outlays, product excesses, entire capital expenditures for setting up adequate 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.
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