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Businesses Medicine

Moderna CEO: 400% Price Hike on COVID Vaccine 'Consistent With the Value' (arstechnica.com) 296

An anonymous reader shares a report: Moderna is considering raising the price of its COVID-19 vaccine by over 400 percent -- from $26 per dose to between $110 and $130 per dose -- according to a report by The Wall Street Journal. The plan, if realized, would match the previously announced price hike for Pfizer-BioNTech's rival COVID-19 vaccine. The Journal spoke with Moderna CEO Stephane Bancel at the JP Morgan Healthcare Conference in San Francisco Monday, who said of the 400 percent price hike: "I would think this type of pricing is consistent with the value."

Until now, the mRNA-based COVID-19 vaccines from Moderna and Pfizer-BioNTech have been purchased by the government and offered to Americans for free. In the latest federal contract from July, Moderna's updated booster shot cost the government $26 per dose, up from $15-$16 per dose in earlier supply contracts, the Journal notes. Similarly, the government paid a little over $30 per dose for Pfizer-BioNTech's vaccine this past summer, up from $19.50 per dose in contracts from 2020. But now that the federal government is backing away from distributing the vaccines, their makers are moving to the commercial market -- with price adjustments. Financial analysts had previously anticipated Pfizer would set the commercial price for its vaccine at just $50 per dose but were taken aback in October when Pfizer announced plans of a price between $110 and $130. Analysts then anticipated that Pfizer's price would push Moderna and other vaccine makers to follow suit, which appears to be happening now.

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Moderna CEO: 400% Price Hike on COVID Vaccine 'Consistent With the Value'

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  • by OrangeTide ( 124937 ) on Wednesday January 11, 2023 @12:37PM (#63199494) Homepage Journal

    It is time to end the free market wild west capitalism in the healthcare industry. Access to healthcare is a right. And a healthy nation is vital to the economy and to national security. As a bonus we can send the hundred thousand people working in health insurance to a better purpose, improving our nations GDP.

    • As a bonus we can send the hundred thousand people working in health insurance to a better purpose, improving our nations GDP.

      While I agree it would be a good thing, it wouldn't improve GDP. GDP is not a measure of utility.
      If I spend time helping the homeless I do not improve GDP. If I pay thousands of workers to work doing something completely useless, destroying it, and then building again, I increase the GDP a lot.

      • If you put those desk jockeys out to sea to drilling oil, you technically improve GDP. Not that it would be practical to do so in real life.
        If you pay people to do something useless destroying it, then you don't directly increase GDP, you instead increase national debt. Which can hide what is going on. It's a broken window fallacy and it doesn't work in macroeconomics.

      • This, GDP is a terrible metric for not only utility, but even the general health of an economy, which is its intended and common purpose. Median household income would be a vastly better metric for general economic health.

    • It's not a right. You don't have "rights" that require someone else to do something for you. I agree we need healthcare reform, including some form of sane single payer, but this "right" claim is bullshit.

      • It's a right. You have a right to your life, to your liberty, and to your property. If nobody is around to keep the thieves off you, then the right is kind of a meaningless exercise. So we pay taxes for cops, courts, and prisons. Those taxes represent you giving up some rights in order to protect other rights that you care about more. Call it the social contract if you want to. Or call it trying to function in a collective group in a productive way.

        So yes. If one person can get insulin that they need to liv

    • It is time to end the free market wild west capitalism in the healthcare industry.

      Alternatively, perhaps the solution here is to really show these companies what "wild west capitalism" is like and remove the patent protection on products like this so we get to see a completely free market at work. Then we'll see the true value of the product not the value created by an artificial monopoly.

      • by suutar ( 1860506 )

        You're also going to need to make some changes to the FDA certification process; that's a bigger hurdle than patents for a lot of stuff (e.g. insulin)

    • If this were entirely in sarcasm font it would actually be clever.
  • by stabiesoft ( 733417 ) on Wednesday January 11, 2023 @12:40PM (#63199510) Homepage
    The gov does not weaponize the IRS. Imagine a full and complete audit of all the top level employees at moderna and their board. I'd think they could get quite the haul of taxes. Or moderna could offer to continue pricing vaccines at current levels.
    • Why u mad bro?
      • I should have phrased it differently. Let me put it in corporate speak. The IRS should say, "Because we want to ensure moderna is composed of honest people of integrity, we have decided to help them show that they are by auditing their corporate executives to demonstrate they are paying all their taxes like honest people do. We know they are doing that, and if the executives desire, at the conclusion of the audit that we are sure will show they pay absolutely all their taxes faithfully, we will share that i
  • by williamyf ( 227051 ) on Wednesday January 11, 2023 @12:44PM (#63199530)

    There are Moderna and Pfizer, and there are J&J and Novavax. All of them are WHO approved and very effective; Novavax 90% and 66% for J for comparison, the seassonal Flu-Shot is slightly above 50% effective.

    If Moderna and Pfizer raised their prices so be it, use J&J or Novavax for your boosters, but GET THOSE DAMNED BOOSTERS. That's the beauty of having plentifull brands and alternatives, if you do not like one brand, or if that brand is too expensive, you go to another brand.

    And count your blessings, in my country we only have Sinopharm and Sputnik-V, so there is that.

    • Given that they got sweet deals from various governments for billions of doses, and a strong built-in marketing campaign they didn't have to pay much for, and a fast-track through FDA approval, their patents should be invalidated if they raise the price. The public paid for the vaccines, the public should have a strong say in how it's priced. They aren't taking any kind of loss here.

  • "Canada set to waste $1 billion worth of COVID-19 vaccines"
    https://nationalpost.com/news/... [nationalpost.com]

    Their primary business model was taking government money. However, most people don't want it. Those that do can afford to pay more for an "every six months" dose.

    • by fred6666 ( 4718031 ) on Wednesday January 11, 2023 @01:09PM (#63199670)

      Canada ordered way too many doses, so of course a lot of them end up in the trash can.

      But that was a very good decision. Back then, the government didn't know which vaccine would succeed. So they basically ordered them all, this way, as long as one ends up safe and effective, we would be covered.
      They also didn't know how many idiots would refuse the shots, so they couldn't take any chance and needed enough for everybody.

      1B$ is nothing, the cost of the pandemic was a that amount (one billion $CAD) PER DAY for the federal government during year 2021.
      So you are complaining for 1/365 of that money? I say it was probably the most well spent of it all.

  • so at $130/dose, I expect the number of sales to be very low, maybe 1% of the population. Now maybe if 50% of the population was getting it, the price could be reduced to $35, but it's not going to happen, at least not in the USA.

  • This same thread is going on over at reddit and the literal clones of one another are all posting the exact same dreary bullshit. "But, but, muh tax dollars!". Those zoomers and millenials are all ranting about guillotines and windfall taxes and "get muh tax money back" when 90% of those fuckers pay like $100 in taxes a year anyway.

    Here is the truth. We needed a vaccine fast, so we paid for it and we fucking got it. Success! Everyone was happy, and what we the taxpayers got for our money (keeping in mind, a

    • There are a lot of people who don't have an extra couple hundred dollars in the budget. People that are in bad health, have occupational exposure to diseases, etc. may still need the shots.

      Copping out with "Insurance will pay for it" is the reason why insurance costs rise every year. Plenty of public health agencies are also providing the shots, so not only will your Aetna-issued tax go up, but also your government-issued taxes.

      • by edwdig ( 47888 )

        Even at these higher prices, you can pay for a LOT of vaccine does with the money it takes to pay for one hospital stay. Vaccinating everyone that wants it works out a lot cheaper than restricting access and paying for the extra hospital stays.

        And don't forget these aren't the prices insurance will actually pay, it's just the starting point for negotiations. The only people that pay list price for medications are people without insurance.

    • There are a number of legitimate issues here:

      1. We don't know if we're really out of the pandemic. China just suddenly quit its zero-covid policies, we could be in for another outbreak, possibly with a new variant. So it's very bad timing for one thing.

      2. This reeks of collusion. Different companies multiplied the prices of already-profitable functionally equivalent products almost in lockstep. They're doing OPEC shit and should be investigated for it. This is what happened when companies colluded on LCD an

    • Yes, $130 is not much but given the billions that governments around the world poured into these companies to develop the vaccine and build manufacturing capacity with the company still making a great profit at $26/dose having them turn around an quadruple the price just because they want to make even more money is pretty much the definition of greed especially when the only reason that they can do that is because of the artificial monopoly created by patent law.

      If companies want to be free to charge wha
  • by OfMiceAndMenus ( 4553885 ) on Wednesday January 11, 2023 @12:51PM (#63199574)
    Your new salary is $5/year.

    Based on this asshole's value to the company and humanity that's more than generous.
  • Vaccines sold as 99% effective vaccine drops to 13% effective vaccine over-targets your immune system to past variants not current variant you now require boosters forever and ever to maintain any immunity at all, vs. natural immunity.

    Having worked with the FDA for decades, and knowing my risk profile (eg. not fat), I wasn't stupid enough to get these injections, but I invested heavily in all the vaccine companies and was able to buy another ski condo with the proceeds. Get your boosters, suckers.

  • If, as the media has led us to believe, the vax is the difference between living and dying if/when you get Covid, I would expect it to be at least several thousands of dollars.

    Why on earth would you sell that for less than $200? People spent that much on bottles of wine.

    Remember when the government was able to buy vaccines at $1 per dose? I knew there was a catch - there was no way the company could have made money on that. Now that vaccines have been normalized, it's time for big pharma to reap the

  • the Martin Shkreli Business School and graduated Magna Cum Laude.
  • it's called "Lei dos Medicamentos Genéricos [wikipedia.org]", which forbids Intelectual Properties registration over medicines, making that any laboratory that want to produce the same medication...
  • Comment removed based on user account deletion
  • by theendlessnow ( 516149 ) * on Wednesday January 11, 2023 @06:29PM (#63200946)
    Pay the gigantic increase, but tell them that they are now subject to unlimited civil suits with no maximums for any type of harm done due to their vaccines.

    My guess, is with that condition, they'll keep the price the same.

Keep up the good work! But please don't ask me to help.

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