Pfizer is expected to roughly quadruple the price of its COVID-19 vaccine to between $110 to $130 per dose next year after the U.S. government’s purchasing program ends, a company official said, according to Reuters.
The government currently pays about $30 for a single dose. In June, the Biden administration signed a $3.2 billion deal with Pfizer for 105 million doses. However, that contract expires at the end of the year. After that, purchase of the vaccines will be transferred to the private sector.
Pfizer executive Angela Lukin, confirms that commercial distribution of the shots will likely begin in early 2023 and they expect the COVID-19 market to be about the size of the flu shot market on an annual basis for adults.
Lukin said Pfizer is working on manufacturing a single-dose shot, the price of which is yet to be determined, but she said it will incorporate manufacturing costs and the value of the shot.
Pfizer is still in discussions with insurance companies to allow the vaccine to be available at no cost to people who have private insurance or government paid insurance. But, it’s not clear how uninsured Americans will have access to the vaccine. Furthermore, private insurers will be required to pay for the doses themselves, which could increase premiums.
“We are confident that the U.S. price point of the COVID-19 vaccine reflects its overall cost effectiveness and ensures the price will not be a barrier for access for patients,” Lukin said.