[Ip-health] Reuters: Exclusive: EU could pay over $10 billion for Pfizer and CureVac vaccines - source

Thiru Balasubramaniam thiru at keionline.org
Fri Nov 20 14:56:32 PST 2020


https://www.reuters.com/article/us-health-coronavirus-eu-pfizer-exclusiv/exclusive-eu-could-pay-over-10-billion-for-pfizer-and-curevac-vaccines-source-idINKBN2800IC

HEALTH
NOVEMBER 20, 20207:05 AM
UPDATED 9 HOURS AGO

Exclusive: EU could pay over $10 billion for Pfizer and CureVac vaccines -
source

By Francesco Guarascio

4 MIN READ

BRUSSELS (Reuters) - The European Union could pay more than $10 billion to
secure hundreds of millions of doses of the vaccine candidates being
developed by Pfizer-BioNTech and CureVac, an EU official involved in the
talks told Reuters.

The bloc has agreed to pay 15.50 euros ($18.34) per dose for the COVID-19
vaccine candidate being developed by Pfizer and BioNTech, according to the
official.

That would mean an overall price of up to 3.1 billion euros ($3.7 billion)
for 200 million doses, rising to 4.65 billion euros if another optional 100
million doses are purchased under the deal, the official said.

The pricing information, previously undisclosed, confirms the EU is paying
less per dose than the United States for an initial supply of that vaccine,
as reported by Reuters last week.

The deal includes an insurance for EU countries to get compensation if the
companies divert doses to the United States, according to the source, who
requested anonymity due to the sensitivity of the matter.

<SNIP>

U.S. drugmaker Pfizer said it and BioNTech were using a tiered pricing
formula based on volume and delivery dates and that the EU deal represented
the largest initial order of its vaccine candidate to date.

“We are not disclosing further details of this agreement,” it added.

<SNIP>

AMERICAN PRICE

Pfizer and BioNTech said on Wednesday that final data showed their shot was
95% effective against COVID-19, and that they could start distributing
shots before Christmas should they secure emergency authorisations..

In July the U.S. government agreed with Pfizer to pay $19.5 per dose for
100 million, with an option to buy a further 500 million under terms to be
negotiated separately.

The lower price partly reflects the financial support given by the European
Union to BioNTech for the drug’s development, a second EU official told
Reuters last week.

Both the Pfizer-BioNTech and CureVac candidates are based on new messenger
RNA (mRNA) technology and designed to be administered in two doses. That
means, for the EU’s Pfizer shot, it would cost 31 euros to inoculate one
person.

To secure the supply of the Pfizer-BioNTech vaccine, the EU has made a
non-refundable down payment. The amount has not been disclosed, but the
official said the bloc had paid 700 million euros to the companies.

The agreed price of 15.50 euros per dose would only be paid by those
European governments willing to buy the shot, and only if it is approved by
the EU regulator as safe and effective.

In a sign of the global race to secure vaccines, the EU required Pfizer and
BioNTech to accept a “breach of contract clause” if they diverted doses to
the United States, the source said.

In that eventuality, EU states would be reimbursed 50% of the money they
had paid, the official said. This clause was requested by the EU, the
official added, despite the companies planning to produce the doses for
Europe in Belgium and Germany.

Reporting by Francesco Guarascio @fraguarascio; Additional reporting by
Ludwig Burger in Frankfurt; Editing by Pravin Char


-- 
Thiru Balasubramaniam
Geneva Representative
Knowledge Ecology International
41 22 791 6727
thiru at keionline.org


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