U.S. COVID-19 vaccine price to cost about the same as a flu shot
(Reuters) - The U.S. government has set a benchmark for COVID-19 vaccine pricing in a $2 billion deal announced on Wednesday with Pfizer Inc (PFE.N) and German biotech BioNTech SE (22UAy.F) that will likely pressure other manufacturers to set similar prices, industry analysts told Reuters.
The deal, which is contingent on an approvable product, secures enough vaccine to inoculate 50 million Americans for about $40 a person, or about the cost of annual flu shots, and is the first to provide a direct window into likely pricing of successful COVID-19 vaccines.
It also allows for some drugmakers to profit from their efforts to protect people from the virus that has killed some 620,000 people worldwide, almost a quarter of those in the United States.
Unlike other vaccine deals signed by the government, Pfizer and BioNTech will not collect a payment until their vaccine proves to be safe and effective in a large pivotal clinical trial expected to start this month.
The U.S. and other governments have previously struck deals to support COVID-19 vaccine development, some of which included guaranteed deliveries of doses. But this is the first deal to outline a specific price for finished products.