ISLAMABAD, (MANEND NEWS): The federal government has directed the health authorities to review the retail price of the Russian coronavirus vaccine after a Pakistani importer raised objections over the price fixed by the government, Geo News reported Monday, citing unnamed sources.
The Federal Cabinet had approved the price recommended by the Drug Regulatory Authority of Pakistan (DRAP) for the Sputnik V vaccine at Rs8,449 for two doses and for China’s CanSino Biologics vaccine at Rs4,225 per jab.
Read more: Sputnik V vaccine imported in Pakistan at a cost price of $22.5 per dose: report
The private firm which imported the Russian vaccine has reportedly objected to the price after which DRAP’s pricing committee has been directed for a review.
They said the implementation on the summary is stopped for now and the approval would be sought again from the cabinet after the price issue is resolved.
Earlier, DRAP had recommended fixing the prices of coronavirus vaccines ordered by private companies, as opposed to having no cap for prices.
It had recommended setting the price of two doses of Russian vaccine Sputnik V between Rs8,000 and Rs9,000.
According to sources, DRAP took the decision regarding the price of the vaccine during an emergency meeting convened by the regulatory authority.
Read more: Govt reverses decision on uncapped prices for privately imported coronavirus vaccines
Price fixing formula
Meanwhile, the health authorities have also finalised a formula to fix the prices of vaccines imported by the private sector in the country.
According to a Dawn report, the regulatory authority has approved two formulas for the sale of vaccine with a 40% mark-up for companies and an additional 15% for retailers/hospitals.
Per details, for those vaccines imported in finished form, the trade price will be equal to landed cost plus 40% mark-up while for the vaccines imported in bulk quantity and repacked locally, the trade price will be equal to landed cost plus packaging cost and 40% mark-up for companies. Moreover, retailers/institutions will get 15pc of the price as commission.
“Cost of imported finished vaccine and bulk import shall be as per the letter of credit (LC) or bank contract established for import from the manufacturer of the respective vaccine. It shall be submitted by the importer along with pro forma invoice issued by the manufacturer and affidavit by the importer to confirm that import price in LC and pro forma invoice is actual and estimated import levies and expenses are not overstated. In case of bulk import and local repacking, cost of packaging shall be estimated and authorised agents shall submit an affidavit about the genuineness of cost and estimated import levies and expenses (advance income tax @ 5.5 per cent, civil aviation charges, LC charges, insurance, etc) shall not exceed 10pc of the cost of freight (C&F) price by the importer,” the notification states as reported by Dawn.
The notification has also prohibited the sale and distribution of vaccines in the market and only allowed the administration in private sector hospitals and institutions.