Moderna Draws Criticism From Lawmakers Over Price Tag For COVID Vaccine In December, Senators Elizabeth Warren and Peter Welch issued a letter to Pfizer in which they criticized the company for planning to raise the cost of its COVID-19 vaccine by as much as $130.
About six weeks later, they shifted their focus to Moderna, the other large manufacturer of COVID-19 vaccines in the world, which has also indicated it may charge up to $130 a dose when the U.S. transitions from a free vaccine program to a commercial one.
In a letter that was sent to CEO Stéphane Bancel, the senators brought to his attention the fact that the creation of the vaccine was made possible in part by a substantial grant from the government. In addition, Warren and Welch raised nine questions to the CEO, the majority of which were centered on the pricing model of the company in relation to the vaccine and whether or not it colluded with Pfizer to determine its price.
“Your company has already earned billions in profits from the vaccine, which benefited from extensive taxpayer support for research and development,” the letter said. “And your proposed price increase threatens to reduce access to a life-saving vaccine while boosting your company’s profits.”
The letter does not directly accuse the company of “deadly greed” as Warren and Welch did with Pfizer on December 13; however, it does raise a significant number of similar questions. According to a statement released by Moderna, the company is dedicated to implementing pricing that accurately reflects the value that COVID-19 vaccines deliver to patients, healthcare systems, and communities as a whole.
In addition, Moderna emphasized that its shot will continue to be offered at no cost for the overwhelming majority of people in the country once the company moves into the commercial sector.
Third-quarter earnings saw Moderna reduce its yearly sales forecast for Spikevax from $21 billion to between $18 and $19 billion. The vaccine brought in $17.7 billion in revenue in 2021.
With their public criticism of Moderna, Welch, and Warren have followed in the footsteps of Senator Bernie Sanders, I-Vermont. Sanders criticized Moderna two weeks ago, citing the company’s receipt of $1.7 billion in public funds for the development of the shot.
Sanders said that the estimated cost of manufacturing one dose of the Moderna vaccine could be as little as $2.85. He stated that any future price rises ought to be moderated by the fact that the U.S. government invested the aforementioned $1.7 billion in the research and development of the vaccine.
Sanders told Bancel that the recent investment made by the government in Moderna was not intended to make a select group of corporate executives and investors even richer; rather, it was to safeguard the lives and health of the people living in the country.
The impact on the millions of Americans who do not have health insurance was also emphasized by Warren, Welch, and Sanders. Thus far, vaccines against COVID-19 have been provided to the public at no cost because of government contracts; however, this may change if and when federal funding is no longer.
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