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 The higher price is less than the United States has agreed to pay in
its latest order in July.
On Sunday, the Financial Times reported the EU has agreed to pay
Pfizer and BioNTech 19.5 euros ($23.1) for each of their COVID-19
shots under a contract signed in May for up to 1.8 billion doses, up
from the 15.5 euros per dose under two initial supply contracts for
a total of 600 million vaccines. This was in line with previous
reports.
The price for Moderna shots went up to $25.5 a dose, the newspaper
said, referring to a 300 million vaccine deal, up from $22.6 in its
initial deal for 160 million jabs.
EU lawmaker Tiziana Beghin, a member of Italy's 5-star ruling party,
said the EU was being been ripped off.
"It's inexplicable," she said.
Moderna's price is still at the lower end of the $25-$37 range
indicated by the company last year, but Pfizer and BioNTech had
previously said prices would be lower for bigger volume deals.
Others said there were good reasons to pay more and that
circumstances had changed greatly from when initial deals were
struck with drugmakers last year.
France's European affairs minister Clement Beaune told French radio
RFI on Monday the likely higher prices were still under negotiation
and were the result of stricter clauses on variants, production and
deliveries.
One European official familiar with negotiations with vaccine makers
said the value of the drugmakers' shots had risen since evidence had
emerged of their efficacy and of the positive impact they had on
helping the economy to recover from a pandemic-induced recession.
"Several factors played a role," the official said, speaking on
condition of anonymity.
BARGAINING POWER
All the vaccines used in Europe have been shown to have a beneficial
impact, but those made by AstraZeneca and Johnson & Johnson, have
faced restrictions on their use in the EU because of concerns they
can in rare instances lead to blood clots.
Those two vaccine makers have also suffered supply problems, which
in the case of AstraZeneca have led to legal challenges by the EU.
While the bargaining power of Pfizer/BioNTech and Moderna has
increased, additional EU demands are likely to raise the costs of
making and delivering vaccines.
A spokesman for Pfizer declined to comment on the European prices,
but said the latest contract with the EU was different from the
initial ones, including on matters concerning production and
delivery.
Moderna did not respond to a request for comment.
The European Commission, which coordinates negotiations with vaccine
makers together with EU governments' representatives, declined to
comment on prices.
However, a spokeswoman told a news conference on Tuesday that in
talks with vaccine makers the EU considers several elements,
including companies' production capacity, delivery schedules and the
technology they use.
[to top of second column] |
 Earlier this year, lawmakers,
media and some analysts criticised the bloc for
paying too little for the early supplies of
COVID-19 vaccines, saying that had contributed
to initial delays in the vaccination drive.
"It's easy to criticise the EU because it spends little and late or
because it spends too much," said Giovanna De Maio, non-resident
fellow at the Brookings Institution, a U.S. research group.
"Reality is much more complicated, and perhaps it is correct to give
priority to access to vaccines rather than costs given the pace at
which the Delta variant is spreading," she added, referring to the
more transmissible variant that was first detected in India.
On July 23, Washington bought an additional 200 million vaccines
from Pfizer at a price of $24 a dose (20.1 euros), the company said,
up from $19.5 the United States paid for its first 300 million
shots.
Pfizer said the higher U.S. prices reflected investment
needed to produce, package and deliver new formulations of the
vaccine, as well as extra costs in producing smaller pack sizes
suited to "individual provider offices, including paediatricians".
MADE IN THE EU
When the EU agreed in May its third supply deal with Pfizer for up
to 1.8 billion doses, the Commission said the new contract required
the vaccines to be made in the EU and the essential components to be
sourced from the region.
In its first supply deals, the EU had required that only vaccines
were made in the EU, not their components.
Concentrating production in Europe can help to guarantee supply now
that production lines are well established and there is less need
for leeway, but it is also likely to increase costs.
The EU Commission also said in its statement that under the new
contract "from the start of the supply in 2022, the delivery to the
EU is guaranteed," whereas under the first contract Pfizer was only
required to make its "best reasonable efforts" to ship pre-agreed
volumes by set deadlines.
Pfizer has so far respected its commitments to the EU, and has
delivered slightly more than initially planned in the first quarter
of the year.
Another big change since the early contracts is the emergence of
variants and concerns vaccines may not be effective against them.
EU officials said governments could refuse to buy shots that did not
protect against variants, while companies will be expected to
quickly adapt their vaccines, potentially at significant cost.
($1 = 0.8422 euros)
(Reporting by Francesco Guarascio @fraguarascio; additional
reporting by Matthias Blamont in Paris and Michael Erman in New
Jersey; editing by Josephine Mason and Barbara Lewis)
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