The Price of COVID Vaccines is Increasing
Moderna, a pharmaceutical and biotech company, is planning to increase the price of its COVID vaccine from $26 per dose to $110-$130 per dose on the commercial market. The company claims that the proposed price “is consistent with the value” that its vaccine provides, but critics argue that this will make the vaccine less accessible to uninsured people, which is not in line with the vaccine’s value.
Moderna’s Commitment to Making the Vaccine Accessible
Moderna has stated that they are committed to pricing the vaccine in a way that reflects its value to society and that the vaccine will continue to be available at no cost for the vast majority of people in the United States. However, this leaves 26 million Americans without health insurance without any guarantees.
Government’s Role in Regulating Vaccine Prices
The White House has expressed concern over Moderna’s plans for commercialization, but so far, the Biden administration has not taken any steps to ensure that the vaccine will be reasonably priced. The administration has the power to play hardball and take steps to lower the price, such as threatening to bypass Moderna’s patent and allow the production and purchase of generic alternatives or threatening to slash the company’s share of the market overseas.
Whether Moderna Price Rise is Ethical?
The price increase of Moderna’s COVID vaccine from $26 per dose to between $110 and $130 per dose on the commercial market is a topic of debate. Some argue that a life-saving invention has great value and justify the price increase. However, others argue that the value of a vaccine depends on access to it and that a high price will limit access, especially for uninsured people, thereby reducing its positive public health outcomes.
The US government funded the clinical development of Moderna’s vaccine, which has caused concern over the company’s plans for commercialization. The Biden administration has expressed concern over the price hike but has not taken any serious steps to ensure reasonable pricing or accessibility. Some suggest that the administration could play hardball, such as threatening to bypass the patent or reduce the company’s market share overseas.
Whether Moderna has an obligation to keep prices low?
Moderna’s profits from the sale of its COVID-19 vaccine are a controversial issue, as some argue that the company should not profit from a pandemic that has caused widespread suffering and death. The company was founded in 2010 and has been selling its vaccine at controlled prices, which have recently been increased. It’s important to note that the research for the vaccine was partially funded by the government, leading some to question whether the company has an obligation to keep prices low.
However, it’s also important to consider the investment and risk that Moderna took in developing the vaccine, which required significant research and development costs. The company also had to invest in the manufacturing and distribution of the vaccine on a global scale, which also adds to the cost. The profits from the sale of the vaccine will likely be used to fund future research and development projects, which can benefit society in the long run.
On the other hand, with the recent increase in vaccine prices, the volume of vaccine sales has decreased, and the risk of waste has increased. This is due to the fact that many countries, especially low- and middle-income countries, are unable to afford the increased prices. In addition, the reduced volume of vaccine sales could also lead to decreased economies of scale and higher costs for the company.
In conclusion, while it’s understandable that some may question Moderna’s profits from the sale of its COVID-19 vaccine, it’s important to consider the investment and risks the company took in developing the vaccine and the potential benefits that could result from the profits. However, it’s also important to address the issue of affordability, particularly for low- and middle-income countries, and to find ways to ensure that everyone has access to the vaccine.
Brief about Moderna
Moderna is an American biotechnology company founded in 2010 that specializes in developing medicines and vaccines based on messenger RNA (mRNA) technology. The company’s mRNA technology allows for the creation of vaccines and therapies that target a wide range of diseases, including cancer, infectious diseases, and cardiovascular disease.
Moderna’s most notable product is its COVID-19 vaccine, which was developed and authorized for emergency use in record time in response to the global pandemic. The company has faced criticism over the pricing of its vaccine, as well as its relatively short history as a publicly traded company and limited track record of producing approved drugs. Despite these criticisms, Moderna’s stock price has risen dramatically in recent months, reflecting investor optimism about the company’s future potential.
While Moderna’s vaccine is valuable in terms of protecting people from COVID-19, the increased price may make it less accessible to uninsured people. It is the government’s responsibility to ensure that vaccines are reasonably priced and accessible to everyone.