The Union government plans to fix the prices of Covaxin and Covishield each at ₹ 275 per dose. The tentative price cap will be implemented once both the vaccines get regular market approval from Drugs Controller General of India (DCGI) next month, The Economic Times reported.
“The government is buying the vaccines in bulk at around ₹205…we thought a 33% profit margin over ₹205 was a fair price for manufacturers. This is why we are planning to cap it at ₹275 per dose,” ET quoted a Health Ministry official as saying. Even though the government aims to keep the price reasonable, it may pave the way for a ₹150 service charge.
Both the vaccines received authorization for emergency use in January last year. Covaxin was priced at ₹ 1200 per dose and Covishield at ₹ 780 per dose. The price also included service charge of ₹ 150 per dose (at private facilities) and the centre may permit similar service charge post-market approval. On January 19, Central Drugs Standard Control Organisation's (CDSCO) Subject Expert Committee had recommended the Centre to grant market approval for the two vaccines.
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The capping of market price will be done by the National Pharmaceutical Pricing Authority (NPPA). The Ministry of Health and Family Welfare has asked the manufacturers of the two companies to come up with a reasonable price after discussing amongst themselves. “If the two companies voluntarily offer a fair price below ₹300 per dose, the government will not get into this (pricing). Even as the two companies are doing their work, the NPPA has been asked to do the spadework,” ET quoted sources saying.
Covaxin is an inactivated virus vaccine manufactured by Bharat BioTech while Covishield is the local name for Oxford Astra-Zenica is a Non-Replicating Viral Vector vaccine manufactured by Serum Institute of India (SII). Both the vaccines had applied for market approval in October last year.
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In December 2021, Ministry of Health and Family Welfare had given approval for two more Indian vaccines namely CORBEVAX (India’s 1st indigenously developed RBD protein sub-unit vaccine against COVID19 manufactured by Biological-E) and COVOVAX (nanoparticle vaccine to be manufactured by SII).
