Industry analysts said the US government has set a benchmark for COVID-19 vaccine pricing after it agreed to pay $2 billion for an initial order of Pfizer and BioNTech's experimental vaccine, a move likely to put pressure on other manufacturers to set similar prices, as reported in the Financial Post.
The deal, which is contingent on an approvable product, secures enough vaccine to inoculate 50 million Americans for about $40 a person, or about the cost of annual influenza vaccine.
At $40 per person, "manufacturers will certainly generate profits" and gross margins could be in the range of 60% to 80% in some geographic areas, commented SVB Leerink analyst Geoffrey Porges.
Still, analysts and pricing experts said the price tag is on par with other common vaccines and a good deal for governments, given the desperate need.
The deal "would provide important benchmarks for COVID-19 vaccine pricing," Porges said, adding that vaccine makers are likely to aim for a single price around the world.
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