The supply price of Bharat Biotech's COVID-19 vaccine Covaxin to the central government at Rs 150 per dose is not sustainable in the long run, the vaccine maker said on Tuesday.
The Centre's supplying price is pushing the pricing structure for the private sector upward.
Fundamental business reasons ranging from low procurement volumes, high distribution costs and retail margins among few others contribute to higher pricing of Covaxin, Bharat Biotech said justifying the higher price when compared to other COVID-19 vaccines available for the private sector in India.
"The supply price of Covaxin to the government of India at Rs 150 / dose, is a non-competitive price and clearly not sustainable in the long run.
Hence a higher price in private markets is required to offset part of the costs," it said in a statement.
Bharat Biotech has so far invested over Rs 500 crores at risk from its own resources for product development, clinical trials and setting up of manufacturing facilities for Covaxin, it added.