The SII recently announced that it would be charging Rs 600 per dose for the private market. This comes at a time when the country is struggling to contain the second wave of the pandemic.
According to a report by The Indian Express, Indians getting inoculated with Covishield at private hospitals from May 1 at Rs 600 per dose, could end up paying the highest price in the world for the vaccine developed by the University of Oxford and AstraZeneca. The Pune-based Serum Institute of India (SII) has a contract to manufacture the vaccine. However, the pricing issue has sparked a debate as the institute’s CEO Adar Poonawalla had said that the firm was making a profit even at a price of Rs 150 per dose.
The SII recently announced that it would be charging Rs 600 per dose for the private market. This comes at a time when the country is struggling to contain the second wave of the pandemic that has overwhelmed the health system. The manufacturer’s rate for private market in India translates to about $8 per shot and is more than its price in any major global market.
If the state governments do not absorb the costs of procuring fresh doses, the citizens will end up paying Rs 400 (or over $5.30) per dose from their pockets at the state government hospitals.
Even the price that the SII is offering for the state governments and new Central procurement orders i.e. Rs 400 per dose, is higher than the price at which governments in countries such as the US, UK and in the European Union are sourcing directly from AstraZeneca.
It is also higher than the price agreed by countries such as Bangladesh, Saudi Arabia and South Africa for supplies of the vaccine from SII. In most of these countries, the shots are being administered for free, with the governments absorbing the costs, The Indian Express reported.
In Europe, a high-cost manufacturing destination, the 27-nation EU is paying $2.15-$3.50 for a shot of the vaccine across locations in terms of per dose pricing.
Meanwhile, Brazil is reported to be paying $3.15 per dose for the AZ vaccine through state-owned Oswaldo Cruz Foundation (Fiocruz), another licenced producer.
According to Reuters, Bangladesh is paying an average of $4 per dose supplied by SII. The BBC quoted health ministry official in Dhaka citing that it entails a total cost at $5 per dose, incorporating the margin charged by Beximco, the vaccine’s Bangladesh distributor.
According to UNICEF’s Covid Vaccine Market Dashboard, both South Africa and Saudi Arabia had paid over $5.25 per dose from SII.
This is higher than the price at which Indians will get vaccinated at state government hospitals, without subsidy.
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