Pfizer (PFE.US) Plans to Raise U.S. COVID-19 Vaccine Price Fourfold to $110–$130 Per Dose

According to the SmartCom APP, Angela Lukin, a senior executive of Pfizer (PFE.US), stated on Thursday that after the current procurement plan of the U.S. government expires, Pfizer expects the price of its COVID-19 vaccine to increase by about four times, to approximately $110 - $130 per dose.

Lukin said she expects the vaccines, which are currently provided free of charge by the government to everyone, will be made available at no cost to those with private insurance or government-funded insurance.

Previous media reports stated that due to weak demand for the COVID-19 vaccine, Wall Street expected the price of Pfizer's COVID-19 vaccine to increase. This means that vaccine manufacturers need to raise prices to meet revenue expectations for 2023 and beyond.

The U.S. government currently pays Pfizer and its German partner BioNTech (BNTX.US) approximately $30 per dose. The market is expected to shift to private insurance after the U.S. public health emergency ends in 2023.

Lukin stated, "We believe that the price of COVID-19 vaccines in the United States reflects their overall cost-effectiveness and ensures that price will not be a barrier for patients to access the vaccine."

It is not yet clear what options will be available for people without health insurance to get vaccinated.

Pfizer stated that the market size of the COVID-19 vaccine is expected to reach the scale of the annual adult flu vaccine, but based on the current vaccination situation, it will take longer to establish the children's market.

So far, despite more people being eligible for vaccination, the rollout of updated COVID-19 booster shots targeting the original coronavirus strain and the Omicron variant in the United States has lagged behind last year.

In the first six weeks after the new vaccine rollout, approximately 14.8 million people in the United States received the booster shot. In the first six weeks of the 2021 vaccine re-vaccination campaign, more than 22 million people received their third dose, although at that time, only the elderly and those with weakened immune systems were eligible.

Lukin said she expects the procurement of COVID-19 vaccines to shift to the private sector no earlier than the first quarter of 2023. This move depends on the exhaustion of government contract supplies.