Top executives of vaccine makers, such as Serum Institute (SII) and Bharat Biotech, will meet Prime Minister Narendra Modi on Wednesday to seek doubling of the cost at which the government procures the prophylactic goods.
They would also urge the PM against any ceiling on the vaccine cost for the private sector, according to a particular person privy to the matter. Currently, the government procures the vaccines — Covishield and Covaxin — at a fixed cost of Rs 150 per dose.
“The government can procure at Rs 300-400/per dose and order the quantity it requires on a priority basis,” the particular person mentioned.
“Vaccine makers can produce more and sell to the private hospitals and others at a price to be arrived at through negotiations. It is not sustainable for them (companies) to supply at Rs 150 a dose. Price capping would demotivate the vaccine makers when what we need is augmented production of the vaccines to meet the needs of population,” the particular person added.
Among other people, SII CEO Adar Poonawalla, Bharat Biotech CMD Krishna Ella, Dr Reddy’s Laboratories chairman Kallam Satish Reddy and Cadila Healthcare chairman Pankaj Ramanbhai Patel are scheduled to meet Modi on Wednesday.
The Centre has supplied two Covid-19 vaccines, Covishield of SII and Covaxin of Bharat Biotech, cost-free of price to the states/UTs to vaccinate well being care workers and front line workers. These two vaccines have been rolled out from March 1 to cover the priority group –people above 60 years of age and these in the age group of 45 years to 59 years suffering from pre-specified co-morbidities.
Dr Reddy’s Laboratories is in the procedure of manufacturing Russia’s Sputnik V although Cadila Healthcare is establishing its vaccine referred to as ZyCoV-D.
Besides domestic vaccination, Indian vaccine makers SII and Bharat Biotech have produced India proud by supplying millions of doses to a significant quantity of nations across the planet to fight the Covid-19 pandemic.
Currently, the Centre procures all the vaccines and provide them cost-free of price to the States and UTs who in turn will disburse them additional to the government and private Covid Vaccination Centres (CVCs). While all vaccines supplied to beneficiaries at the government well being facilities will be totally cost-free of price, private facilities can not charge more than Rs 250 per particular person per dose (Rs 150 for vaccines and Rs one hundred as operational charges). At the present costs, two doses will price Rs 500 per particular person.
For Covid-19 vaccination, the Budget for FY22 has produced a provision of Rs 35,000 crore to cover 50 crore individuals (Rs 700/particular person for two doses, such as vaccine price of `400-500).
But the present costs fixed by the Centre are even decrease at Rs 500/particular person for two doses. Depending on the vaccination roll-out, a funding pattern will be worked out among the Centre and states and accordingly provisions will be produced. If costs are revised upward, the Budget provision may well have to be enhanced to some extent or the states may well be asked to foot element of the vaccination price.