Moderna CEO Defends Pricing Plans for Covid-19 Shot

The chief executive said the company’s mRNA platform was funded by investors, not the government, and the public funding accelerated development of the vaccine. 

“We didn’t get a penny,” Mr. Bancel said of Moderna’s fundraising efforts, adding that the company unsuccessfully sought funding in the first half of 2020 from countries and foundations to help with manufacturing. He said a company plant was built before the pandemic by private funding. 

Moderna has said it is considering pricing its Covid-19 vaccine in a range of $110 to $130 a dose in the U.S. when it shifts from government contracting to commercial distribution of the shots. Mr. Bancel on Monday declined to say what the price will be. He said the company has plans so that the vaccine won’t cost anything to individuals. 

After promising early-stage data of the shot came out, Moderna raised money, which it put toward manufacturing doses of the vaccine, still without knowing whether it would work, Mr. Bancel said. The company worked with suppliers to increase manufacturing, he said. 

By the time the government placed an order, in the second half of 2020, all the capital risk was put in place by shareholders, he said. Moderna’s first supply of vaccine with the U.S. government in 2020 totaled 100 million doses and roughly $1.5 billion. 

To date, the federal government has purchased all doses of Covid-19 vaccines and made them available at no cost to consumers. U.S. officials have said that after the supply secured under federal contracts runs out, companies should switch to standard commercial distribution.

Pfizer Inc.

has said it is considering a similar pricing range for the Covid-19 vaccine it developed with

BioNTech

SE. The company was in discussions with insurers and expects commercial shipments to begin later this year, the company said in January.

Write to Jared S. Hopkins at [email protected]

The chief executive said the company’s mRNA platform was funded by investors, not the government, and the public funding accelerated development of the vaccine. 

“We didn’t get a penny,” Mr. Bancel said of Moderna’s fundraising efforts, adding that the company unsuccessfully sought funding in the first half of 2020 from countries and foundations to help with manufacturing. He said a company plant was built before the pandemic by private funding. 

Moderna has said it is considering pricing its Covid-19 vaccine in a range of $110 to $130 a dose in the U.S. when it shifts from government contracting to commercial distribution of the shots. Mr. Bancel on Monday declined to say what the price will be. He said the company has plans so that the vaccine won’t cost anything to individuals. 

After promising early-stage data of the shot came out, Moderna raised money, which it put toward manufacturing doses of the vaccine, still without knowing whether it would work, Mr. Bancel said. The company worked with suppliers to increase manufacturing, he said. 

By the time the government placed an order, in the second half of 2020, all the capital risk was put in place by shareholders, he said. Moderna’s first supply of vaccine with the U.S. government in 2020 totaled 100 million doses and roughly $1.5 billion. 

To date, the federal government has purchased all doses of Covid-19 vaccines and made them available at no cost to consumers. U.S. officials have said that after the supply secured under federal contracts runs out, companies should switch to standard commercial distribution.

Pfizer Inc.

has said it is considering a similar pricing range for the Covid-19 vaccine it developed with

BioNTech

SE. The company was in discussions with insurers and expects commercial shipments to begin later this year, the company said in January.

Write to Jared S. Hopkins at [email protected]