Moderna Has Agreed To Supply The US Authorities With A $1.5 Billion COVID-19 Vaccine
American biotech company Moderna Inc. agreed with the US authorities to supply 100 million doses of its experimental coronavirus vaccine for more than $1.5 billion.
The US administration has already entered into several agreements to purchase hundreds of millions of doses of vaccines with other companies. With the latest deal, the government will spend more than $9 billion on vaccines, as well as invest in research and development of vaccines.
The vaccines will be provided to patients in the United States for free, and the government will be able to purchase an additional 400 million doses, Moderna reported.
Taking into account the cost of the agreement, the price of one dose is about $15. This is lower than $32-$37 per dose - the price the company called last week for small deliveries.
The Moderna vaccine is one of the most developed. It is currently being tested at a late stage with 30,000 patients.
Moderna received government funding of about $950 million for the development and testing of a vaccine created in conjunction with the US National Institutes of Health. With this funding, the price of a single dose of the vaccine could jump to about $25, analysts at Morgan Stanley estimated.
The US has made deals with most companies developing the most advanced vaccines in recent weeks. So, the American Johnson & Johnson, the world's largest manufacturer of medical products, said last week that it agreed to supply 100 million doses of its coronavirus vaccine for use in the United States for more than $1 billion from the Federal government of the country. So the price per dose is about $10.
Last month, the US authorities agreed to pay $ 1.95 billion to Pfizer and BioNTech for 100 million doses of their vaccine, which corresponds to $19.5 per dose. Meanwhile, AstraZeneca agreed to provide the US with 300 million doses of the vaccine for $1.2 million, which corresponds to $4 per dose.
Moderna plans to produce at least 500 million doses per year starting in 2021, with a maximum volume of 1 billion.
Moderna shares are up 9.9% in pre-auction trading on Wednesday.