From 10,000 Won to 160,000 Won... Concerns Over Soaring COVID-19 Vaccine Prices

Moderna Considers Vaccine Price Increase
After Government Contract Ends and Commercial Distribution Begins

Moderna, a COVID-19 vaccine manufacturer, has announced that it is considering a significant price increase for its vaccine.

The Wall Street Journal (WSJ) reported on the 9th (local time) that Moderna is reviewing a plan to raise the price per vaccine dose from the current $13-$15 (approximately 13,700 KRW to 18,700 KRW) to $110-$130 (approximately 124,500 KRW to 161,800 KRW) once commercial distribution begins, following the end of its exclusive supply contract with the U.S. government.

On the morning of October 1, 2021, Moderna vaccines were prepared for administration at Hongik Hospital in Yangcheon-gu, Seoul.
[Photo by Yonhap News]

Currently, the U.S. government purchases all COVID-19 vaccines distributed by Moderna and Pfizer in the United States and provides them free of charge. The original Moderna vaccine price was set at $15-$16 during the initial supply contract with the U.S. government. The price for the updated booster shot was contracted at about $26 in July last year.

However, with the end of the COVID-19 vaccine supply contract with the U.S. government, if Moderna distributes the vaccine directly to hospitals, pharmacies, and insurance companies like other infectious disease vaccines, the price could increase by about five times. Moderna CEO St?phane Bancel said to local reporters on the same day, "Considering the value of the vaccine, I believe this price range is appropriate."

Earlier, Pfizer also announced in October last year that it plans to raise the price per vaccine dose to between $110 and $130 once its supply contract with the U.S. government expires.

However, Moderna expects that even if the vaccine price increases, its sales will significantly decrease. Moderna recorded its highest-ever sales of about $18.4 billion (approximately 22.9 trillion KRW) last year, but it forecasted that sales could drop to around $5 billion (approximately 6.2 trillion KRW) this year.