Pfizer's COVID-19 Vaccine Price Surges by 500% Amid Shift to Commercial Market

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Warren Buffett has a famous saying:"Price is what you pay.";"Value is what you get."

Pfizer has a lot of leeway in vaccine pricing, especially when almost all its competitors have been shut out by the FDA. But the story doesn't end there.

In the meeting with shareholders2021During the annual earnings call, Pfizer's Chief Financial Officer, Frank D'Amelio (Frank D’Amelio) Discussed how the company took advantage of "pandemic pricing" for each doseCOVID-19Vaccine Collection19.50The cost in dollars, the product is expected to be2021Annual Profit150billion dollars." Damerio said:"Once we get out of the current pandemic situation, there will be a great opportunity for these profit margins to improve." He is not joking.

A few weeks ago, the Associated PressPublished a report announcing that Americans can now receive the latestCOVIDVaccines, on the12The small gold nugget is hidden in this paragraph. According to the Associated Press:“The manufacturer claims that the price tag for each vaccine is120To130Dollar.Pfizer(Pfizer)and its German partnersBioNTechThe set pricing is at the lower end of this price range.;ModernaThe price is slightly higher.

Compared with two years ago, the price has increased several times over without drawing media attention, but some people have noticed and are dissatisfied. Vanderbilt University School of Medicine(Vanderbilt University School of Medicine)Professor of Pediatrics and Infectious Diseases, Catherine Edwards(Kathryn Edwards)Summarized her view on the price increase in two words.:"Pretty bad.""According to the Washington Post,"Some clinics charge up to150Dollar, some patients pay out of pocket(Although according to federal law,COVIDVaccines must be covered by public and private insurance companies)"It's absurd," said the chief operating officer of a pediatric hospital in Maryland.Jenna VallejoTell the newspaper.

A spokesperson for Pfizer announced that the pricing "is consistent with the value provided."People are dissatisfied with Pfizer's pricing, but it is necessary to ask a question.:What Should Be the Price of Pfizer's Vaccine?

Warren Buffett has a famous saying:"Price is what you pay.";"Value is what you get."This sentence is very helpful because it reminds us that price and value are not the same. Value is subjective and does not depend on the amount of labor or resources required for the product.

Prices work differently.In a free market, buyers and sellers make decisions freely every day, which helps determine the prices of everything from bacon, peanut butter to stocks andiphoneThe prices of various goods. Of course, the role of vaccines is somewhat different. First, as mentioned earlier, most consumers do not have to pay anything for vaccines. In most cases, a third party—public or private insurance—will foot the bill. In other cases, the government purchases vaccines directly from manufacturers at negotiated prices.. All of this means that Pfizer has significant flexibility in vaccine pricing – especially considering that nearly all of its competitors are constrained by the U.S. Food and Drug Administration.(fda)Excluded. But the story doesn't end there.

Pfizer's financial report shows,2021Annual income is813Billion US dollars, approximately2020Twice the annual income.To2022In the year, total revenue soared even higher, exceeding1000Billion US dollars.2022Year, despite the relatively low price of the vaccine, its revenue was approximately380Billion US dollars.

Since then, the situation has changed. In2021Year and2022For most of the year, Pfizer has been in the lead. The government forced people to get vaccinated. If you don’t get vaccinated, you might get fired. Or expelled from school. Or denied entry to restaurants or concerts.

The government artificially increased the demand for Pfizer's products, thereby boosting profits. But those days are basically over. Politicians are no longer talking about getting Americans vaccinated, either because the policy proved too polarizing and unpopular, or because public officials eventually admitted that vaccines cannot preventCOVIDInfection. In any case, the lack of enforcement will mean forCOVIDThe demand for vaccines has greatly decreased. In fact,CNNA recent survey found that only a quarter of American adults said they would definitely get the latest vaccine.

Pfizer, Inc. has undoubtedly recognized the weakening demand, so they have raised prices.