The Drug Regulatory Authority of Pakistan (Drap) has approved formulae for maximum retail prices of Covid-19 vaccine.
The notification, signed by Legal Affairs Assistant Director Hafiz Bilal Bin Akbar, approved two formulas for the sale of vaccine with 40% mark-up for companies and additional 15% for retailers/hospitals.
The notification, which will be published in the extraordinary Gazette of Pakistan, Part-II, states that in exercise of powers conferred by Section 12 of the Drugs Act 1976, the federal government is to provide for mechanism for fixing of maximum retail price of vaccines for Covid-19.
The first formula for imported vaccines, in finished form, states that the trade price will be equal to landed cost plus 40% mark-up. While the second formula, which is for imported vaccines in bulk form and local repack, the trade price will be equal to landed cost plus packaging cost and 40% mark-up for companies.
The retailers and institutions will get 15% of the price as commission.
The notification reads,
“Cost of imported finished vaccine and bulk import shall be as per letter of credit (LC) or bank contract established for import from 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 statement adds,
“The vaccines shall be registered or approved for emergency use authorisation by the Registration Board of Drap; the vaccines shall not be sold or distributed in the market; and the vaccines shall be administered in private sector hospitals and institutions.”
A summary submitted to the federal cabinet has suggested the price of Russian vaccine Sputnik V at Rs8,449 per pack (two injections) and that of CanSino [a single-dose vaccine of a Chinese company] at Rs4,225. However, the vaccine will not be sold or distributed in the market and will be administered in private hospitals and institutions.
The summary states,
“Price for Gam-Covid-Vac (Viral Vector 5 and Viral Vector 26) be fixed at Rs8,449 per pack of two injections, Rs16,560 per pack of four injections, Rs40,555 per pack of 10 injections, and Rs81,110 per pack of 20 injections. Price of Convidecia vaccine be fixed at Rs4,225 per injection. Approval of the federal cabinet is solicited.”