SII slashes Covishield's price for states to Rs 300, Bharat Biotech cuts Covaxin's price to Rs 400

Bharat Biotech on April 29, 2021 reduced the cost of COVAXIN vaccine for State governments from earlier announced Rs 600 per dose to Rs 400 per dose. 

In a statement, the company said that it is deeply concerned with the critical pandemic circumstances India is facing at this time. It further stated, "recognising the enormous challenges to the public health care system, we have made Covaxin available to the state governments at a price of Rs 400 per dose. 

Bharat Biotech reduces the cost of #COVAXIN vaccine for State Govts.

It will now cost Rs 400 per dose for State Govts instead of earlier announced price of Rs 600 per dose. #IndiaFightsCorona pic.twitter.com/miG1rCaepr

— All India Radio News (@airnewsalerts) April 29, 2021

The move came a day after Serum Institute of India slashed the price of its Covishield vaccine for state governments from earlier Rs 400 per dose to Rs 300 per dose. The centre had earlier asked both Serum Institute of India and Bharat Biotech to lower the price of their Covid-19 vaccines amid protest and criticism from states. 

SII CEO Adar Poonawalla made the announcement through a tweet in which he wrote, "As a philanthropic gesture on behalf of @SerumInstIndia, I hereby reduce the price to the states from Rs 400 to Rs 300 per dose, effective immediately; this will save thousands of crores of state funds going forward. This will enable more vaccinations and save countless lives."

As a philanthropic gesture on behalf of @SerumInstIndia, I hereby reduce the price to the states from Rs.400 to Rs.300 per dose, effective immediately; this will save thousands of crores of state funds going forward. This will enable more vaccinations and save countless lives.

— Adar Poonawalla (@adarpoonawalla) April 28, 2021

Delhi CM appeals to SII, Bharat Biotech to keep prices same for all

Delhi Chief Minister Arvind Kejriwal, during his press briefing yesterday, had appealed to both the vaccine manufacturers to keep their prices same for all. He appealed to them saying that this was not the time to earn profits when there is a raging pandemic. He had also appealed to the centre to cap the price of the vaccines if needed.

I appeal to vaccine manufacturers to bring down the price to Rs 150/dose. You have an entire lifetime to earn profits. This is not the time to do that when there is a raging pandemic. I also appeal to the Central Govt to cap the price (of vaccines) if needed: Delhi CM #COVID19

— ANI (@ANI) April 26, 2021

The issue of vaccine pricing was then discussed during a meeting chaired by Cabinet Secretary Rajiv Gauba. The two vaccine manufacturers are now expected to come up with revised pricing for their vaccines.

COVID-19 vaccine prices for states

•Both Serum Institute of India and Hyderabad-based Bharat Biotech had earlier released new prices for the state governments and private hospitals. 

•Serum Institute, the manufacturer of the Covishield vaccine, had previously fixed the price of its vaccine at Rs 400 per dose for state governments and Rs 600 per dose for private hospitals.

•On the other hand, Bharat Biotech, manufacturer of Covaxin, had fixed the price of its vaccine at Rs 600 per dose for the state governments and Rs 1200 per dose for private hospitals. 

•However, both the manufacturers decided to continue to keep their vaccine price for the centre at Rs 150 per dose. 

•This move had raised criticism among the state governments, who raised the issue of how the manufacturers can keep separate pricing for the centre and state. 

Background

•The central government had on April 19, 2021 relaxed its vaccination strategy, making everyone above the age of 18 years eligible for vaccination from May 1st. 

•In this third phase of vaccination, the state governments and private hospitals have been given a go-ahead to procure the vaccines directly from the vaccine manufacturers, instead of following the central government route. 

•Under the new directions, the vaccine manufacturers will supply 50 percent of their monthly Central Drugs Laboratory (CDL)-released doses to the central government and will be free to supply the remaining 50 percent to state governments and the open market.

•The manufacturers were required to make an advance declaration of the price for the 50 percent supply that would be available to state governments and in the open market.

•SII has defended pricing Covishield at 1.5 times the initial rate, saying the earlier price was based on advance funding, and the company has to now invest in scaling up and expanding capacity to produce more shots.

•Announcing the price of Covaxin, Bharat Biotech Chairman and Managing Director Krishna M Ella had said that recovering cost is essential for innovation.