Moderna, which has previously charged between $15 and $26 for a dose of its Covid vaccine, intends to raise prices to as much as $130 per dose. Democratic Senator Bernie Sanders slammed the proposed price increase, calling it an “unprecedented level of corporate greed” in the pharmaceutical industry. Moderna CEO Stephane Bancel defended the price increase, saying that the distribution system will change completely when the US government lifts the state of emergency, which could happen as soon as May.
During a Senate hearing, Sanders stated that Moderna was “thanking the taxpayers of the United States” by more than tripling the price of the vaccine “at a time when it costs less than $3 to manufacture.”
However, the Moderna CEO stated that once the shots are fired in the private sector, the company will no longer benefit from the economies of scale that come with government purchases.
Until now, Moderna’s COVID-19 vaccine had only one customer: the government. Bancel stated that if the vaccine manufacturer adopts a more traditional marketing strategy, it will “have 10,000 customers” and will have to “manage to deliver to 60,000 pharmacies, doctors’ offices, and hospitals.”
“On top of all this, we’re expecting a 90 percent reduction in demand,” said Bancel, adding “as you can see, we’re losing economies of scale.” Furthermore, according to AFP, until now, Moderna has not had to pay for the cost of expired doses. However, it will now have to bear that burden and deal with unsold doses.