Covaxin at Rs 150/dose to Centre is 'non-competitive', non-sustainable: Bharat Biotech
By Team Newsable | First Published Jun 16, 2021, 1:37 PM ISTIndian manufacturer Bharat Biotech has clearly stated that the supply of Covaxin to Centre at Rs 150/dose is 'non-competitive' and 'non-sustainable' price. The manufacturer believes the price of vaccines is not feasible to them.
Hyderabad-based Bharat Biotech which is manufacturing Covaxin on Tuesday said that the price at which it is supplying vaccines to the central government is not feasible to the company.
At present Covaxin is being supplied to the Centre at the cost of Rs 150/dose only.
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The firm feels the current price is non-competitive and non-sustainable in the long run.
The manufacturer is giving vaccines at Rs 400/dose to different state governments and has priced the vaccine to 1200/dose for private players.
The manufacturer has indicated that to stabilise the company, they would reconsider pricing to private hospitals which would mean the existing price at private hospitals to get a vaccine jab will further shoot up from the existing Rs 1,410.
The reason for the decision to increase supply price for private hospitals is due to the manufacturer's obligation to supply 75% at low rates to Centre and various state governments, low procurement, high distribution cost, retail margins and few others.
'Invested Rs 500 crore from own resources'
As per reports, Bharat Biotech has invested about Rs 500 crore at risk from its own resources. From product development to clinical trials and setting up of manufacturing facilities for Covaxin, the firm pumped at a risk of Rs 500 crores and so far has supplied 40 million doses.
"The pricing of vaccines and other pharmaceutical products heavily relies on a series of 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," a report quoting the official from the firm said.
“The support from the Indian Council of Medical Research (ICMR) was with respect to provision of the SARS-CoV-2 virus, animal studies, virus characterisation, test kits and partial funding for clinical trial sites. In return for this valuable support, Bharat Biotech will pay royalties to the ICMR and the National Institute of Virology (NIV), based on product sales. Royalties are also payable to Virovax towards the licensure of IMDG agonist molecules,” a report quoting the release said.
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