Pfizer raises price of vaccines it supplies to the European Union by 50 percent

The European Union is negotiating with Pfizer the largest contract in history to supply vaccines. It is to buy 1.8 billion doses, an astronomical figure that represents four times the population of the 27 Member States and 23 percent of the world’s population.

On the occasion of the new order, which totals $41 billion, the multinational has increased its price by more than 50 percent, from 12 to 19.50 euros, according to Bulgarian Prime Minister Boiko Borissov.

“There is a terrible trade war that is inflating prices strongly,” Borissov says in a video posted on Facebook.

“Pfizer was at 12 euros, then it went to 15.50 euros. And now they are signing contracts for 900 million vaccines at €19.50,” the Bulgarian prime minister said. “That’s €18 billion – many variants will appear, and so we will have a first injection, a second, then a third and a fourth! This will have an impact on the budgets of the coming years,” Borissov added.

The European Commission is currently in talks with Pfizer to close the supply of vaccines for 2022 and 2023, and one of the factors in the negotiation is rising prices.

The European Commission has so far refused to disclose the price of the vaccines. However, last December the Belgian Secretary of State, Eva De Bleeker, shared the cost of the vaccines negotiated by the Commission, as well as the number of doses purchased by her government. Then, it became known that the AstraZeneca dose costs €1.78 compared to €12 from Pfizer.

Recently the Italian RAI has published the contracts signed by the European Union with Pfizer (1) and Moderna (2) for the supply of vaccines and which Brussels has tried to keep secret until now.

Current vaccine demand and prices “are not determined by normal market conditions,” says Frank D’Amelio, Pfizer’s chief financial officer and vice president. “They are driven by the pandemic situation we find ourselves in and the need for governments to procure doses from various vaccine suppliers,” the executive said. 

“What we believe is that normal market forces will soon kick in. Factors like efficacy, the ability to boost immunity, will become even more critical, and we see that as a big opportunity for demand for our vaccine and for pricing. So, in short, there is a lot to come,” he added.

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