Moderna to Price Its Covid-19 Vaccine at $130 a Dose

The cost could vary depending on contracts reached with health systems, pharmacies, federal health programs and other potential buyers, but the company has settled on a price of about $130, Moderna President

Stephen Hoge

said.

“We tried to think very reasonably about the price of this, and I think we’ve landed on a price that is consistent with value,” Dr. Hoge said.

For the many people who are insured, the higher pricing might not add to their expense, since their plans aren’t likely to assess a copay or other out-of-pocket cost. However, people without insurance could be forced to pay out, though Moderna said it is developing financial-assistance programs.

Moderna, like other Covid-19 vaccine makers, has been developing a list price for its shots and negotiating contracts as the federal government winds down its exclusive pandemic purchasing arrangements.

The U.S. government paid Moderna between $15 and $26 a dose and made them available at no cost. Sales will shift to the commercial market after the Biden administration ends the national emergency in May and government supplies are used up.

The Wall Street Journal reported in January that Moderna was considering a commercial price range of about $110 to $130 a dose, similar to what

Pfizer Inc.

said it was considering for the Covid-19 vaccine it sells with partner

BioNTech SE.

Moderna disclosed its planned price, which was earlier reported by Reuters, as it faces criticism.

U.S. Sen.

Bernie Sanders

(I., Vt.) sent a letter to Moderna Chief Executive

Stéphane Bancel

in January asking him to reconsider, saying that the company had received federal funding to develop its Covid-19 vaccine and that charging a high price could put it out of reach for some people and boost costs for government health programs.

Senators

Elizabeth Warren

(D., Mass.) and

Peter Welch

(D., Vt.) also sent a letter to Mr. Bancel, requesting information about the planned price increase.

Moderna is “thanking the taxpayers of the U.S. by proposing to quadruple the price of the Covid vaccine to as much as $130 once the government stockpile runs out,” Mr. Sanders said at Wednesday’s hearing of the Senate Committee on Health, Education, Labor and Pensions. Mr. Sanders chairs the committee.

Some Republican committee members said that while they are concerned about the high cost of medicines, they didn’t want to send a hostile message to companies that make risky investments in drug development.

Mr. Bancel said at the hearing the company’s pricing reflects the cost and complexities of distributing vaccines to thousands of customers, rather than to a single purchaser in the government. He also said Moderna, rather than the federal government, would now incur the cost of making doses that go unsold.

“After losing money for 10 years, Moderna created a vaccine that helped end the pandemic. We were able to move quickly because of a decade of private investment in our mRNA platform and because of a decision in 2016 to build a manufacturing plant in Massachusetts,” Mr. Bancel said.

Dr. Hoge said earlier that Moderna is grateful for the financial support it received from the U.S. government but that the company in exchange sold shots under federal supply contracts at a lower price than the Pfizer-BioNTech vaccine. 

“We feel we have honored the support we got and then paid it back and then some,” he said.

In setting a new commercial price, Dr. Hoge said, Moderna also considered the value of its Covid-19 vaccine in combating a disease that is still more burdensome than seasonal flu, and that pneumonia and some other vaccines have even higher prices.

The company expects the new pricing will take effect for the Covid-19 booster shots it develops for a fall vaccination campaign.

Dr. Hoge said people with insurance won’t have to pay any out-of-pocket costs for the vaccine. Moderna plans to start a patient-assistance program that provides the vaccine free to uninsured or underinsured people.

People with insurance would be able to get the shots in the same way they do for other vaccines, at pharmacies and doctor’s offices, by presenting their insurance information.

Moderna said the program to provide free vaccines to uninsured and underinsured people would be implemented with the rollout of booster shots in the fall. Mr. Bancel said the company was considering forming partnerships with rural hospitals and homeless shelters to provide free vaccines.

Write to Peter Loftus at [email protected]

The cost could vary depending on contracts reached with health systems, pharmacies, federal health programs and other potential buyers, but the company has settled on a price of about $130, Moderna President

Stephen Hoge

said.

“We tried to think very reasonably about the price of this, and I think we’ve landed on a price that is consistent with value,” Dr. Hoge said.

For the many people who are insured, the higher pricing might not add to their expense, since their plans aren’t likely to assess a copay or other out-of-pocket cost. However, people without insurance could be forced to pay out, though Moderna said it is developing financial-assistance programs.

Moderna, like other Covid-19 vaccine makers, has been developing a list price for its shots and negotiating contracts as the federal government winds down its exclusive pandemic purchasing arrangements.

The U.S. government paid Moderna between $15 and $26 a dose and made them available at no cost. Sales will shift to the commercial market after the Biden administration ends the national emergency in May and government supplies are used up.

The Wall Street Journal reported in January that Moderna was considering a commercial price range of about $110 to $130 a dose, similar to what

Pfizer Inc.

said it was considering for the Covid-19 vaccine it sells with partner

BioNTech SE.

Moderna disclosed its planned price, which was earlier reported by Reuters, as it faces criticism.

U.S. Sen.

Bernie Sanders

(I., Vt.) sent a letter to Moderna Chief Executive

Stéphane Bancel

in January asking him to reconsider, saying that the company had received federal funding to develop its Covid-19 vaccine and that charging a high price could put it out of reach for some people and boost costs for government health programs.

Senators

Elizabeth Warren

(D., Mass.) and

Peter Welch

(D., Vt.) also sent a letter to Mr. Bancel, requesting information about the planned price increase.

Moderna is “thanking the taxpayers of the U.S. by proposing to quadruple the price of the Covid vaccine to as much as $130 once the government stockpile runs out,” Mr. Sanders said at Wednesday’s hearing of the Senate Committee on Health, Education, Labor and Pensions. Mr. Sanders chairs the committee.

Some Republican committee members said that while they are concerned about the high cost of medicines, they didn’t want to send a hostile message to companies that make risky investments in drug development.

Mr. Bancel said at the hearing the company’s pricing reflects the cost and complexities of distributing vaccines to thousands of customers, rather than to a single purchaser in the government. He also said Moderna, rather than the federal government, would now incur the cost of making doses that go unsold.

“After losing money for 10 years, Moderna created a vaccine that helped end the pandemic. We were able to move quickly because of a decade of private investment in our mRNA platform and because of a decision in 2016 to build a manufacturing plant in Massachusetts,” Mr. Bancel said.

Dr. Hoge said earlier that Moderna is grateful for the financial support it received from the U.S. government but that the company in exchange sold shots under federal supply contracts at a lower price than the Pfizer-BioNTech vaccine. 

“We feel we have honored the support we got and then paid it back and then some,” he said.

In setting a new commercial price, Dr. Hoge said, Moderna also considered the value of its Covid-19 vaccine in combating a disease that is still more burdensome than seasonal flu, and that pneumonia and some other vaccines have even higher prices.

The company expects the new pricing will take effect for the Covid-19 booster shots it develops for a fall vaccination campaign.

Dr. Hoge said people with insurance won’t have to pay any out-of-pocket costs for the vaccine. Moderna plans to start a patient-assistance program that provides the vaccine free to uninsured or underinsured people.

People with insurance would be able to get the shots in the same way they do for other vaccines, at pharmacies and doctor’s offices, by presenting their insurance information.

Moderna said the program to provide free vaccines to uninsured and underinsured people would be implemented with the rollout of booster shots in the fall. Mr. Bancel said the company was considering forming partnerships with rural hospitals and homeless shelters to provide free vaccines.

Write to Peter Loftus at [email protected]