Pfizer Inc (NYSE:PFE) is to put up the price of its Covid vaccine in the US by around four times, an executive for the pharma giant has confirmed.
Angela Lukin told Reuters the new price for the jab will be around US$110-130 compared to US$30 currently, though it will still be available free of charge to people with private or US government healthcare insurance.
“We are confident that the US price point of the COVID-19 vaccine reflects its overall cost-effectiveness and ensures the price will not be a barrier to access for patients," Lukin said.
Demand for Covid booster jabs has been falling recently and analysts said price hikes are needed for Pfizer and other vaccine makers such as Moderna (NASDAQ:MRNA) and Novovax to hit financial targets this year.
Reasons for the drop-off include a rise in Covid infections in those who have been vaccinated and new strains of the virus developing, with these leading people to question why they should have a jab.
Having previously been forecast to be the same size as the flu market, analysts now suggest the market might only be a third of the size, though the vaccine companies disagree.
John Trizzino, Novavax’s chief commercial officer, said that while vaccine fatigue and the belief the pandemic is over is affecting the number of people getting vaccinated, rising infection rates, hospitalisations and deaths will see that number pick up.
Covid is a substantial earner for all three of the vaccine makers.
Consensus forecasts are for revenues of US$16.3bn from its Covid jab this year for Pfizer, US$7.9bn for Moderna and US$2.8bn for Novavax.