Bharat Biotech is currently offering Covaxin vaccine at Rs 150 per dose to the central government, Rs 400 to the state government and Rs 1,200 to private hospitals.
In the meantime, Bharat Biotech has said that the provision of Covaxin vaccine to the central government at a cost of Rs 150 per dose will not last long. This is because they have to sell at higher prices in the private markets to cover part of the cost.
It is said in a statement that,
The price structure for the private sector has to be increased by the price paid to the central government. Low purchasing volumes, high delivery costs and even basic retail margins motivate the private sector to set higher prices.
Why Covaxin can not be bought for Rs 150 for a long time
This price is a reasonable one compared to other vaccines. Paying Rs 150 to the Government of India for the distribution price of Covaxin is a non-competitive price and it is not worth it for long. So a higher price is sold in private markets to cover a portion of the costs.
Note that, less than 10 percent of Covaxin’s total production has been supplied to private hospitals, as advised by the federal government. Most of the remaining amounts have been provided to the State Governments and the Central Governments.
The company has invested over Rs 500 crore from its own resources for product development, clinical trials and setting up production facilities for Covaxin.
The pricing of vaccines and other pharmaceutical products depends heavily on other factors such as the price of the product and the raw materials, product failures, product development risks and product overhead costs.
Also read: Covid-19 Vaccine Registration: Here Is How To Register On CoWIN Portal
At present, like most drugs and treatments, vaccines are also provided free of charge by the Government of India to all eligible Indian citizens.
Therefore, the purchase of vaccines by private hospitals is optional and not mandatory, although it does provide an option for interested citizens. More than 50 million doses of Covaxin have been delivered so far.
