Bharat Biotech says ₹150 per dose for Covaxin not sustainable in long run

Bharat Biotech said a higher price in private markets is required to offset the part of the cost due to the non-sustainability of the current price.

Hyderabad-based Bharat Biotech, the manufacturer of Covaxin vaccine, on Tuesday claimed that the supply price of the Covid-19 vaccine to the government at ₹150 per dose is non-competitive. Bharat Biotech said a higher price in private markets is required to offset the part of the cost due to the non-sustainability of the current price.

Justifying the higher price for Covaxin, Bharat Biotech said the Centre's supplying price is pushing the pricing structure for the private sector upward. (HT Photo)

"The supply price of Covaxin to Govt of India at ₹150/dose, is a non-competitive price & clearly not sustainable in the long run. Hence a higher price in private markets is required to offset part of the costs," the indigenous vaccine producer said.

Justifying the higher price for Covaxin, Bharat Biotech said the Centre's supplying price is pushing the pricing structure for the private sector upward. Other fundamental business reasons like low procurement volumes, high distribution costs and retail margins are some factors contributing to the increased pricing of Covaxin, the drug pharmaceutical company said when compared to other Covid-19 vaccines available for the private sector in India.

The Centre recently announced its U-turn from the old vaccine policy that mandated the state government to negotiate and procure. Covishiled was priced at ₹300 per dose, while Covaxin charged ₹400 per dose from the states. Both the vaccines cost ₹150 per dose to the Centre.

Covishield vaccine manufacturer, Pune-based Serum Institute of India CEO Adar Poonawalla had earlier said that the company was losing money at ₹150 per dose and will price the vaccine at ₹400 per dose for the states and the Centre.

Under the new vaccine guidelines, the Centre would buy 75% doses from the vaccine manufacturers including the 25% that the states used to buy as per old guidelines. The government would provide these procured vaccines for free to the states, while the private sector can buy the remaining 25%.

A price cap of ₹150 as an administration charge has also been put up for the private hospitals, which many of the experts have rejected considering the volume of the vaccine doses. With the new price cap, Covishiled will cost ₹780 and Covaxin will cost ₹1,410 per dose.

The company has so far invested more than ₹500 crore at risk from its own resources for product development, clinical trials and setting up the facility, Bharat Biotech added.

( With agency inputs)