U.S. sets global benchmark for COVID-19 vaccine price at around the cost of a flu shot - (Financial Post via NewsPoints Desk)

  • 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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