US Reached $1.95 Billion Deal With Pfizer for 100 Million Doses of Their Vaccine Candidate

On Wednesday, Pfizer Inc. and BioNTech SE announced an agreement with the U.S. government under the Department of Health and Human Services for up to 600 million doses of mRNA-based vaccine candidate against COVID-19.

The federal government initially placed an order of 100 million doses of BNT162 for $1.95 billion and can acquire an additional 500 million doses, after Pfizer and BioNTech successfully developed, manufactured and obtains emergency use authorization from the U.S. Food and Drugs Administration.

Operation Warp Speed: Free Coronavirus Vaccine for Americans

The $1.95 billion deal with Pfizer to acquire 100 million doses of its vaccine candidate would be free to Americans although health care provider may charge to administer it.

The deal between the federal government and Pfizer was part of Operation Warp Speed, as announced by the U.S. Department of Health and Human Services along with the Department of Defense. Furthermore, Trump administration hopes to provide accessibility to at least one safe and effective coronavirus vaccine to Americans by January 2021.

The vaccine candidate BNT162 is co-developed by BioNTech, a German company and has started its clinical trials in April. Earlier this week, Pfizer announced the positive early results of the tests. It is possible that more extensive safety and efficacy studies could begin later this month.

"If the ongoing studies are successful, Pfizer and BioNTech expect to be ready to seek Emergency Use Authorization or some form of regulatory approval as early as October 2020," Pfizer said in a statement.

Four other companies-Novavax, Moderna, Johnson & Johnson, and AstraZeneca - have already received huge contracts still under the program Operation Warp Speed.

According to HHS Secretary Alex Azar in a press release, scientists are drawing together a portfolio of vaccines to increase the chances that Americans will have at least one safe, and effective vaccine as early as the end of the year.

Aside from the initial 100 million doses order of the vaccine candidate, it is also stipulated in the agreement that the federal government may acquire an additional 500 million doses of the vaccine candidate.

"No Profit" Pricing of Coronavirus Vaccine

At a House Committee on Energy and Commerce hearing on Tuesday, U.S. Rep. Jan Schakowsky, questioned the vaccine manufacturers if they would commit in selling their vaccines at no profit.

Two companies declined to make this pledge, both Moderna and Merck. While the deal between AstraZeneca and the federal government specified that they will sell 300 million doses to the government "at no profit."

Moreover, Johnson & Johnson promised they would provide its vaccine "at a not-for-profit price especially during these times. Pfizer did not mention anything about selling their vaccine candidate at "no profit" price in their announcement on Wednesday, Schakowsky noted that the company had once said it would sell its vaccine for a profit.

Chief business officer of Pfizer, John young, said that they are going to price their potential vaccine consistent with the pandemic that the world is facing right now. "And secondly we also believe, and critically, that COVID vaccines should be free to the public. A vaccine is meaningless if people are unable to afford it."