According to Ministry of Health and Family Welfare sources, the capping of prices of the two vaccines was discussed at a recent meeting. An official, who was present at the meeting but did not wish to be identified, told ET, “The government is buying the vaccines in bulk at around ₹205. So we thought a 33% profit margin over ₹205 was a fair price for manufacturers. This is why we are planning to cap it at ₹275 per dose.”
Under emergency use authorisation, Bharat Biotech has priced Covaxin at ₹1,200 per dose while Serum Institute of India has priced Covishield at ₹780 for private hospitals. The prices include ₹150 service charge.
With regular market approval expected by next month, the government is now addressing the issue of pricing of the two vaccines.
The National Pharmaceutical Pricing Authority (NPPA) has been directed to start working towards capping the price to make the vaccines affordable. According to sources, the health ministry has also asked the two companies to work out a fair price themselves. “If the two companies voluntarily offer a fair price below ₹300 per dose, the government will not get into this (pricing). Even as the two companies are doing their work, the NPPA has been asked to do the spadework.”
The exercise has attained urgency as the Central Drugs Standard Control Organisation’s Subject Expert Committee had recommended granting regular market approval to the two vaccines on January 19. Serum Institute of India had submitted an application to the Drugs Controller General of India (DCGI) on October 25 seeking regular market approval for its Covishield. Bharat Biotech had also submitted complete information on the chemistry, manufacturing and controls, along with the pre-clinical and clinical data while seeking regular market authorisation for Covaxin.
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