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FRANKFURT: BioNTech, the first in the race to produce evidence of a working COVID-19 vaccine, plans to price the two-shot regimen below “typical market rates” and would differentiate prices between countries or regions.
Speaking at a Financial Times online event, German biotech firm’s chief strategy officer Ryan Richardson said the price of the vaccine, which is jointly developed with Pfizer and has yet to gain regulatory approval, would reflect the financial risks that its private sector investors have incurred.
“We have tried to apply a balanced approach that recognizes that innovation requires capital and investment, so we plan to price our vaccine well below typical market rates, reflecting where we find ourselves and aiming to ensure broad-based access around the world, “Richardson said at the FT event.
“I hope there will be differential prices in certain regions of the world,” he added, declining to give details about the different price tags.
On Monday the vaccine was shown to be 90 percent effective, according to preliminary test results, a key milestone in the war against a virus that has killed more than a million people and hit the global economy.
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In July, Pfizer had agreed with the US government to supply 100 million doses of its potential vaccine at a price of $ 39 for a two-dose immunization, or $ 19.50 per dose, with the option to sell another 500 million doses under conditions to be negotiated separately.
The European Commission will discuss on Wednesday the adoption of a supply contract with Pfizer and BioNTech. The bloc said earlier this week that it was close to signing a contract for up to 300 million doses, without providing financial conditions.
Richardson also said the two partners’ goal of supplying 1.3 billion doses in 2021 would be the result of increased efforts well into the second half of next year.
While there would be a “significant supply” during the first half, the increase in production would continue throughout 2021.
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BioNTech’s chief strategy officer emphasized that, although the German group had received public sector backing, the risks taken by its investors would deserve some financial rewards from a future vaccine.
“We incur considerable financial risk. We have raised capital in the capital market,” he said.
Richard Hatchett, CEO of the Coalition for Epidemic Preparedness Innovations (CEPI), told the FT event that the Pfizer and BioNTech project was the only one among the top 10 vaccine developers that had not received “substantial funding from the public sector.”
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In June, the European Investment Bank, the EU’s financial arm, awarded BioNTech € 100 million in debt financing for the development and manufacture of the COVID-19 vaccine.
In September, the German research ministry awarded BioNTech € 375 million, subject to meeting certain milestones, also to accelerate the development and production of vaccines.
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