Low Price For Centre Leading High Covaxin Price For Private Sector

• ByStartupStory     |    June 16, 2021

The Vaccine Maker said Bharat Biotech’s Covid 19 vaccine Covaxin supply price for Central Government at Rs 150 per dose isn’t sustainable in the long run. To offset other parts of the costs it’s required to set a high Covaxin Price for the Private Sector. Fundamental business reasons ranging from high distribution costs, low procurement volumes, and retail margins, among few others, contribute to higher Covaxin price for the private sector, Bharat Biotech said, explaining the reason for the higher price when compared to other COVID-19 vaccines available.

Bharat Biotech is currently supplying Covaxin at Rs 150 per dose to the Centre and Rs 1,200 to private hospitals. During the month of May, the company had sold vaccines at Rs. 400 to the state government when the Centre had said that states would need to acquire vaccines for the 18-44 age group. As stated by the Centre, less than 10 percent of the total production of Covaxin supposed to sell to private hospitals, however, the remaining quantity was supplied to Central and State Governments.

The firm has invested over Rs 500 crore at risk from its own resources for clinical trials, product development, and the setting up of manufacturing facilities for Covaxin. The pricing of vaccines and other pharmaceutical products heavily depends on several factors such as the cost of goods and raw materials, product failures, at-risk product development outlays, and product overages, besides other regular business expenditures, the city-based company said.

Vaccines are provided free of cost by the Government of India to all eligible Indian citizens. Thus, the inoculation of vaccines by private hospitals is optional and not mandatory, hence giving a choice to citizens who are willing to pay for better convenience,” Bharat Biotech further said.

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