US will pay Pfizer/BioNTech $1.95 billion order for 100 million Covid-19 vaccines the companies announced Wednesday, July 22, 2020. This will be enough to the vaccinate 50 million people. This is due to the fact that the vaccine has to be administer twice to achieve maximum effect. The deal also stipulates that neither company will receive a single cent until the vaccine third stage clinical trials. This means, the US will not potentially lose money on a worthless treatment. That being said, the vaccine has shown promise early-stage human testing. the US will pay Pfizer/BioNTech a rather hefty price for so doses of the vaccine. However, the deal also has an option where the US can order additional 500 million doses. This would be enough vaccine to vaccinate the total population of the United States.
Price
Despite the US paying Pfizer/BioNTech almost $2 billion for the vaccine the average American won’t have to pay a dollar. The US departments of Health and Human Services stated the vaccine will be available to all Americans at no cost. However, they did state that any Americans who help share probably see their insurance companies charged. Pfizer/BioNTech stated that they hope to have 100 million doses finished by the end of the year. Additionally, by the end of 2021 they hope to have more than 1 billion doses finished and distributed. Also, the US only country that will be receiving doses of the vaccine should it past the third stage testing.
On Monday July 20, 2020 the companies agreed to supply the UK with 30 million doses the vaccine. As the US will not pay Pfizer/BioNTech until the third phase clinical trials completes companies have begun preparations to start. At this point they are hoping to begin the trials as early as next pending regulatory approval. To that end companies conducting the third stage trials areas most heavily affected by the coronavirus. This is due to the fact that vaccine trials produce the most reliable results in areas with high active infection. If this vaccine works then the US paying Pfizer/BioNTech almost $2 billion will be well worth the price.
