Moderna CEO Stephane Bancel supported the company’s plans for raising the price its Covid vaccination Wednesday at a Senate hearing. He said that the move was necessary as its government funding is about to end.
“Until now, it was the U.S. government that purchased and distributed the vaccine. Moderna, a small business, must now ensure that everyone who needs a vaccine can obtain it at a convenient location,” Bancel explained to members of the Senate Committee on Health, Education, Labor and Pensions.
According to the company, it intends to increase the price of the vaccine for consumers to $130 per dose from its current $26 price.
Senator Bernie Sanders (I-Vt.), the panel’s chair was a vocal critic of Moderna’s plan and quizzed Bancel about whether new pricing was necessary. Sanders pointed out that the vaccine was created with the assistance of scientists from the National Institutes of Health and billions of dollars donated by the federal government.
Without the NIH’s expertise and partnership, this vaccine would not be possible. This is because of the significant investment made by the taxpayers. Sanders stated that $12 billion was spent by U.S. taxpayers on research and procurement for the NIH Moderna Covid vaccine.
Sanders stated that the company was now “thanking the United States taxpayers by proposing to quadruple Covid vaccine’s price to $130 once the government stockpile is exhausted, at a moment when it costs less to manufacture the vaccine.”
Pfizer stated last year that it will sell the Covid vaccine developed with BioNTech for $110 to $130 per dose, for teens and adults, once the U.S. government ceases paying for them.
Bancel stated that it is estimated that the U.S. vaccination program has prevented more than 3,000,000 deaths and 18 million hospitalizations. He also said that his company and the entire world owe the U.S. government a debt “of gratitude.” He said that the post-pandemic environment will present a challenge to his company.
Bancel stated that Moderna anticipates a decrease in orders as demand falls. This will also lead to increased distribution costs for vaccines. The federal government has assumed this responsibility until now. Bancel also said that there are many supply chain problems.
However, the CEO vowed that the vaccine would be affordable to those in need. He stated that he was committed to making sure anyone who needs a vaccine is able to get it without having to pay a penny.
