Centre may renegotiate vaccine prices with SII and Bharat Biotech


AFTER CHANGING its vaccine procurement policy, the Centre is prone to have interaction in renegotiations at the costs of Bharat Biotech’s Covaxin and Serum Institute of India’s Covishield, The Indian Express has learnt.

A senior executive professional mentioned the revised procurement worth in keeping with dose, which is these days Rs 150 for each vaccines, is “yet to be decided under the new system”. The Centre is finalising the contours of the pricing, the professional mentioned.

The Finance Ministry, Health Secretary Rajesh Bhushan, NITI Aayog Member (Health) Dr Vinod Okay Paul, Serum Institute of India and Bharat Biotech didn’t reply to queries at the factor.

Earlier this week, Prime Minister Narendra Modi introduced that the Centre would purchase 75 in keeping with cent of doses from vaccine makers, together with 25 in keeping with cent of the state quota, and provides it at no cost to state governments. This is geared toward facilitating loose vaccination for all above 18 years of age from June 21, which is likely to cost the exchequer an additional Rs 15,000 crore as in comparison to the Budget allocation of Rs 35,000 crore.

When the Centre started vaccination in January, it procured 11 million doses of Covishield at Rs 200 each and every aside from taxes, and about 5.5 million doses of Covaxin at Rs 206 each and every aside from taxes. However, the costs have been later negotiated downwards to Rs 150 in keeping with dose.

Until April, personal hospitals needed to procure vaccines thru the federal government, which allowed the Centre to cap the costs at Rs 250 in keeping with dose for each Covishield and Covaxin.

Even when vaccination was once opened to these within the 18-44 years age crew, the Centre’s procurement worth didn’t exchange. “It is clarified that Govt of India’s procurement price for both #COVID19 vaccines remains Rs 150 per dose,” the Health Ministry tweeted on April 24.

In April, producers have been allowed to mend their very own costs for states and personal healthcare amenities, following the verdict to decentralise vaccine procurement. SII and Bharat Biotech to start with priced their vaccines at Rs 400 and Rs 600 respectively for states and Rs 600 and Rs 1,200 respectively for personal amenities. Following backlash, the procurement costs for states have been revised to Rs 300 in keeping with dose of Covishield and Rs 400 in keeping with dose of Covaxin.

The states, which to start with needed to compete with personal hospitals for vaccine provides, have been later allowed to get entry to an unique 25 in keeping with cent of the vaccines produced on the revised charges. The Centre nonetheless had get entry to to 50 in keeping with cent of the doses, whilst the remainder 25 in keeping with cent was once opened to personal hospitals.

“It is pertinent to note that the Central Government, by nature of its large vaccination programme, places large purchase orders for vaccines as opposed to the state governments and/ or private hospitals and therefore, this reality has some reflection in the prices negotiated,” the Centre had mentioned in a sworn statement filed in accordance with a suo motu writ petition within the Supreme Court at the distribution of very important provides and services and products all through the pandemic.

The dichotomy in pricing was once flagged by way of the Supreme Court on May 31. “The Liberalised Vaccination Policy leaves the State/UT Governments to fend for themselves, rather than the Central Government acting on behalf of the entire nation,” it famous, mentioning issues raised all through the court cases.



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