Skip to main content

Market Overview

COVID-19 Vaccine Should Be Priced Similar To Flu Shot, Says Ex-FDA Commissioner

Share:
COVID-19 Vaccine Should Be Priced Similar To Flu Shot, Says Ex-FDA Commissioner

Therapeutic companies working on a COVID-19 vaccine could earn a profit on their product if it's priced similarly to a standard flu vaccine, former FDA commissioner and Pfizer Inc. (NYSE: PFE) board member Dr. Scott Gottlieb said on CNBC's "Squawk Box."

What Happened: It's important to note that vaccines generally aren't a high-margin product to begin with, as opposed to small molecule drugs, Gottlieb said. A COVID-19 vaccine that is priced similarly to a flu vaccine will afford a company "a sufficient margin and some profit" that can be invested back in the manufacturing process for future vaccines, he said. 

Producing a vaccine at a large scale is a profitable venture, Gottlieb said, adding that some may overlook the fact it requires continuous investments and innovation.

Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.

Why It's Important: Behind the scenes, a vaccine is the end result of the work of more than 10,000 workers, as is the case with Sanofi SA (NASDAQ: SNY), Gottlieb said.

"It's a business that requires a lot of manpower, a lot of large scale manufacturing," he said. "So you want the companies to have some kind of margin, a reasonable margin, to put back into innovations and manufacturing."

What's Next: Even when a vaccine comes to market it is unlikely to be a "one and done" solution, Gottblieb said.

Vaccines will need to be changed perhaps on an annual basis moving forward, the former FDA commissioner said. 

Related Links:

GlaxoSmithKline, Sanofi Ink Deal With UK To Supply Up To 60M Doses of COVID-19 Vaccine

Pfizer To Charge $39 Per Coronavirus Vaccine Course To All Developed Countries For Similar Volume Commitments As US

 

 

Related Articles (PFE + SNY)

View Comments and Join the Discussion!

Posted-In: Coronavirus Scott Gottlieb vaccineHealth Care Media General Best of Benzinga