The announced rise in prices of Pfizer and Moderna’s Covid-19 vaccines on the other side of the Atlantic may also be reflected in the European Union at the time that the Community Executive of Ursula von der Leyen is renegotiating supply contracts.
The European Commission is currently negotiating to reduce the number of vaccines that Pfizer must supply in 2023, due to the low percentage of booster doses administered, in exchange for raising the price paid to the US laboratory, as Reuters advanced on Friday. In addition, Brussels is currently in talks with Moderna to seal a new contract, since the current one concluded at the end of last year, according to sources familiar with the pharmaceutical industry.
On the other side of the Atlantic, in the US, Pfizer and Moderna have stirred up the political class by announcing an exponential price increase for their respective products. In the case of the New York giant, its vaccine will go from $30 to a range of $110 to $130 per dose. Initially, each puncture cost $19.5 in 2020, which has grown to $24 in 2021, according to the specialized publication Fierce Pharma.
Likewise, Stéphane Bancel, CEO of Moderna, advanced this month that the amount of his version will also reach the fork between 110 and 130 dollars. Both Pfizer and Moderna take this step after giving up a federal contract with the Joseph Biden Administration, for which they will go on to sell in the juiciest free market. It must be remembered that the US is a completely deregulated drug market in terms of prices.
Brussels proposes paying more to receive fewer doses, due to the low rate of use
As a result of these announcements, the White House press secretary, Karine Jean-Pierre, lamented two weeks ago that these business decisions are “difficult to justify.” The political debate reminds us that without the boost of federal money, these companies would not have had the same success. In the case of Moderna, this biopharmaceutical received 1,000 million dollars in public aid from the then Administration of Donald Trump for the R&D of its product, in addition to another 1,500 million in a purchase. For its part, Pfizer did not receive development subsidies, but received funds thanks to the guaranteed supply contract.
In Brussels, the pressure on the EC and the Member States now comes from the last contract signed by Von der Leyen to supply community partners with 900 million doses, a figure that is currently considered excessive due to the slow evolution of the administration of booster doses and aggravated by the expiration of the vials. In this agreement, the signed price reached 19.5 euros, according to the Financial Times (the amount is confidential), compared to 15.5 euros in the first agreement of 2020. In the case of Moderna, the cost stands at 22 ,5 euros.
And it is that the needs of the countries have changed. Data from the European Center for Disease Control and Prevention (ECDC) show how the population’s interest in inoculation has decreased, despite the efforts of the health authorities to raise awareness of the importance of protection against variants like omicron. 73% of the population has completed the first regimen, 54% have received the first booster dose and, however, the percentage of the second booster drops to 13.9% (see graph).
The messenger RNA version from Pfizer – and from its German partner BioNTech – is the most used in Europe, having been used in 73% of the 908.8 million punctures, according to data from Our World in Data up to January 28. . The Moderna version –also RNA– remains far behind, with 16.9% of the doses. In the case of Moderna, the agreement with Brussels expired last year and it is currently negotiating a renewal.
Regarding this dialogue, a Pfizer spokesman adheres to the message that they continue to “work with the European Commission and governments to find pragmatic solutions.” For his part, a Commission spokesman indicates that they are working to ensure that agreements with companies reflect “the changing situation.” Moderna, for its part, assures that this information is confidential.
