EU official reveals secret: US pays more for coronavirus vaccines



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The European Union appears to have paid less than the United States for some of the coronavirus vaccines it has secured, according to confidential pricing data that was released in an apparent blunder.

A Belgian government minister published, then quickly deleted, a Twitter message on Thursday evening containing the prices the European Union negotiated to pay pharmaceutical companies for coronavirus vaccines.

The prices had been kept secret by the European Commission, the bloc’s executive, which negotiates on behalf of its 27 member states and orders doses for the 410 million people living in this vast region, where cases have increased.

European countries tend to pay significantly lower prices for most drugs than patients in the United States. But coronavirus vaccines are unusual because the U.S. government has negotiated prices and arranged to purchase doses for each American directly, unlike most drugs, where the U.S. government has a limited role, and drug companies. individual insurance negotiate with drug manufacturers.

The higher price in the United States may reflect a less aggressive negotiating stance on the part of American officials, who were keen to encourage several drug companies to invest in vaccine development – and a willingness to put the United States in first line for doses when available. These financial incentives seem to have worked: no vaccine has ever been developed so quickly.

The new information has emerged days before the European Union approves its first vaccine for use in the region, which will trigger an ambitious and logistically difficult vaccination campaign.

The price list, briefly released by Belgium’s Budget Secretary of State Eva De Bleeker, showed that the Pfizer-BioNTech vaccine, which is due for approval on Monday in the bloc and is being administered in the United States and Great -Brittany, will cost 12 euros, or $ 14.70, per dose, bringing the cost per person to € 24, as each person is supposed to receive two doses.

That’s significantly lower than the company’s official price, which was advertised at $ 19.50 per dose, which is also what the US government paid. Deployment of the Pfizer vaccine began this week in the United States.

Moderna vaccine, which is next in line to be approved by the EU on January 6 and is expected to receive US Food and Drug Administration clearance for emergency use on Friday, costs US $ 18 per dose, according to the table. The company had said it was looking to charge $ 25 to $ 37 per dose.

Eric Mamer, a spokesperson for the European Commission, declined to comment on the price list, saying the negotiated deals were “covered by confidentiality”, but did not dispute the prices.

A spokesperson for Ms De Bleeker said she tweeted details to settle a political debate in Belgium, where opposition politicians accuse the government of not having set aside enough money to buy the vaccines .

“We were trying to be transparent, but it seems we were a little too transparent,” said Bavo De Mol, the spokesperson.

Several health economists have noted that the price of the vaccine itself – even though the United States pays more than Europe – is insignificant compared to the economic cost of a continuing pandemic. Again this week, Congress is preparing to authorize payments of $ 600 to every American adult to cushion the blow of the recession caused by the pandemic, far more than the $ 39 per person it will take to immunize adults at the Pfizer price. higher.

“The cost of overpayment is so low compared to the potential counterfactual,” said Benedic Ippolito, resident researcher at the American Enterprise Institute, which studies drug prices. “It’s like a shrug situation where, OK, our price is a little higher. This is a one-time pandemic, and we will sort out the drug price situation later. “

But now that it is public, the price differential may influence negotiations on future vaccine batches.

Secrecy around European prices was part of the negotiation, EU officials said, although they acknowledged that demands for transparency around vaccine deals were legitimate.

“We wouldn’t have had these contracts if we hadn’t included the confidentiality clause,” Mamer said. “This is a relevant debate, we are not questioning it. It was part of the process of concluding these contracts, and we are not in a position to change it now, ”he added.

The European Union has ordered more vaccines from most suppliers than the United States, in part because the block’s total population is larger. In the case of the Pfizer-BioNTech vaccine, for example, the EU has secured 200 million vaccines with the possibility of enjoying the same deal for more.

The other prices on the list published by the Belgian Minister included 1.78 euro per dose for the AstraZeneca-Oxford University vaccine; $ 8.50 per dose for the Johnson & Johnson vaccine; 7.56 euros for the Sanofi / GlaxoSmithKline; and 10 euros for the Curevac. Some of these vaccines are lagging behind in development and their advance purchase agreements may never activate or take much longer; the contract that the EU has signed with them will only become active if their vaccines work.

By allowing the EU to strike a comprehensive deal on behalf of its 27 member countries, governments have pooled their negotiating capital and influence as a bloc, according to bloc leaders.

Provided the Pfizer-BioNTech vaccine is approved on Monday, the EU plans to deliver the first batch of vaccine to each of its member capitals on December 26 and start rolling out inoculation throughout the bloc immediately after.

Matina Stevis-Gridneff reported from Brussels; Margot Sanger-Katz reported from Washington.

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