Buying The Coronavirus Vaccine: What Would A ‘Fair And Reasonable’ Price Be?

The US government has a routine approach for negotiating single-seller/single-buyer contracts, but drug pricing politics and public fears of coronavirus will likely complicate any purchasing talks with a sponsor, should an effective vaccine or therapeutic emerge.

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An affordable price for a coronavirus vaccine may be determined with a formula used when the government is the only buyer for a product. • Source: Shutterstock

The 'fair and reasonable' price mandated for new coronavirus vaccines and therapeutics under new US legislation may wind up a largely subjective decision for the government officials that would be tasked with any procurement.

With little data and no competitors as a benchmark, the sponsor’s accounting of costs plus a mark-up for profit may...

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