USA —Pfizer Inc will nearly quadruple the price of its Covid vaccine, Cominarty in the United States, an executive for the pharma giant has confirmed.

Angela Lukin told Reuters the new price for the jab will be around US$110-130 compared to US$30 currently, though it will still be available free of charge to people with private or US government healthcare insurance.

The new price will go into effect in 2023, most likely in the first quarter, when the United States depletes its stockpile of COVID vaccines and transitions to a commercial model, according to Pfizer.

The US government paid Pfizer and partner BioNTech US$19.50 per shot under the initial contract for 100 million doses, rising to about US$30.50 a shot in the most recent supply deal announced over the summer.

The arrangement was one of several contracts the US signed with COVID-19 vaccine developers, including Moderna and Novavax, to make the shots available for free to people in the country during the public health emergency.

However, the US is not expected to renew the emergency declaration next year, which will open up COVID-19 vaccines and treatments to private markets.

Lukin said Pfizer was working in unknown territory during the pandemic’s emergency phase, but “we will now be moving into our sweet spot of the traditional commercial marketplace.”

She also indicated that the company was developing a single-dose version of its vaccine, saying the increased price reflects that, as well as the cost of distribution.

Once the public health emergency declaration expires and existing federal supply of vaccines runs out, Lukin said she still anticipates that every American with private insurance or government insurance who is eligible for vaccination will not have any out-of-pocket costs.

Outside the United States, Pfizer said it already has contracts with governments in many developed markets that extend through 2023 with prices that have already been set.

Analysts believe that price increases are required for Pfizer and other vaccine manufacturers such as Moderna and Novovax to meet financial targets this year.

The reasons for the drop-off include an increase in Covid infections among those who have been vaccinated, as well as the emergence of new strains of the virus, which has led people to question why they should get vaccinated.

Previously predicted to be the same size as the flu market, analysts now believe it may be a third the size, though vaccine companies disagree.

For instance, John Trizzino, Novavax’s chief commercial officer, said that while vaccine fatigue and the belief the pandemic is over is affecting the number of people getting vaccinated, rising infection rates, hospitalizations and deaths will see that number pick up.

The public announcement of the new price range could also be a green light for competitors Moderna Inc  and Novavax Inc strive for prices in the same range.

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