The Indian government has been negotiating with the Serum Institute of India to lower down the price of AstraZeneca’s COVID-19 vaccine, people who are close to the matter said, delaying the roll-out of the country’s immunisation programme.
The emergency use of the vaccine has been approved by India’s drug regulator that has been developed by Oxford University, and Indian firm Bharat Biotech but the government has not placed firm orders with either firm.
According to reports, one of the sources with direct knowledge told Reuters that, senior officials have been discussing the terms of the deal with the Serum Institute for weeks, hoping to bring down prices below $3 per shot.
Serum chief executive Adar Poonawalla had told the CNBC-TV18 channel in November the vaccine would be priced at about ₹1,000 ($13.55) per dose for the private market in India and would cost the government about ₹250 ($3.40) per dose.
The source said, some officials are seeing the probability of a further lowering of prices. To vaccinate a country of over 1.3 billion people involves a large cost and every rupee saved would help a lot.
“Any government would do this, we need to keep costs down,” the source said.
“Price is an issue with Serum. The government needs to control it,” another official said, speaking on condition of anonymity.
Serum Institute and India’s health ministry did not answer on the request for a comment.
However, on Saturday, the government announced the immunisation programme will begin on Jan. 16. The plan is to cover 300 million people in the first part of the programme, kicking off with health workers, frontline staff such as police and then people over the age of 50 and those with co-morbidities.
The vaccination process will require 600 million doses and Serum Institute, the world’s largest manufacturer of vaccines has stockpiled 50 million doses for instant distribution.
Although there is no word yet on negotiations with Bharat Biotech whose vaccine is developed in collaboration with the Indian council for Medical Research was given an emergency licence even though it has not completed efficiency trials.
The officials said, with the Serum Institute, the government is also trying to close in on a price it wants before clearing any shipments for exports or private sales.
“More than 150 countries want this vaccine. But nothing will move until the government reaches an agreement on prices,” the official said.
India has said no limitations on exports were in place, but is yet to formally announce export permission despite pressure from Brazil that has sought 2 million doses of the AstraZeneca vaccine made in India.
It is expected by the AstraZeneca shot that is locally branded as COVISHIELD in India to meet 90% of India’s mass immunisation programme needs, according to official.
The government plans to obtain 600 million doses for the country’s vaccination drive aimed at vaccinating 300 million citizens over the next six to eight months.
