Amid a surge in COVID-19 infections in China due to the unexpected implementation of “With Corona,” there was a big price negotiation in Beijing in early January. There was a negotiation between Pfizer and China’s National Health Security Agency (Uibor Bureau) over the supply price of Paxlovid, a COVID-19 treatment in the U.S.China does not allow the introduction of the Western Pfizer and Moderna vaccine, a messenger ribonucleic acid (mRNA), but Paxrovid, an eating treatment, gave emergency approval in February last year. The introduction price of one Pfizer (30 tablets) to China was initially set at 2,300 yuan ($340) and then went down to 1,890 yuan ($280).The negotiations broke down. China’s national treasure bureau said, “The negotiations broke down because Pfizer offered too high a price.” Pfizer, on the other hand, countered, “We cannot comply with the demand for a lower price than the supply price of underdeveloped countries.”According to Chinese media, price negotiations were held at the Great Hall of the People in Beijing from January 5th to 8th. As there are many multinational pharmaceutical companies participating in price negotiations, each pharmaceutical company negotiated an hour every day. It was four hours of negotiation for four days.It was not disclosed how much the Uibo Bureau offered. Reports are also mixed among Chinese media. In an interview with Radio Free Asia (RFA), Ren Lu-hung, who served as head of the medical rescue department of the Chinese Red Cross, said, “China’s offer price was around 700 yuan, which is about 100 dollars at the current exchange rate.”
Based on the current supply price of 1,890 yuan, Pfizer has asked for a 63% cut. I’m asking you to lower the price to one-third of the current supply price. China’s national treasure is a place where you can cut prices. It is said that in the past, multinational pharmaceutical companies negotiated a price cut of up to 62% and this time, they demanded a price cut to that level.”China is the world’s second-largest economy, and I don’t think it should be cheaper than El Salvador in Latin America (underdeveloped),” said CEO Albert Bulla Pfizer, who attended a healthcare conference hosted by JPMorgan in San Francisco on Jan. 9.Black market price ‘9.2 million won per box’ In the U.S., the supply price of Paxrovid is 530 dollars per serving. Pfizer is divided into three groups: well-off developed countries, middle-income countries, and underdeveloped countries, and sets a separate supply price for Paxrovid. It is said that the price to be supplied to advanced European countries, Hong Kong, and Taiwan, including Korea, is about 500 to 700 dollars per serving. The supply price for underdeveloped countries is 220 dollars.There is no specific price for middle-income countries, but the first price supplied to China is 2,300 yuan, which seems to be in the $300-400 range. Based on this standard, Pfizer’s position is that China’s $100 per serving is much lower than the supply price of underdeveloped countries ($220).Chinese portal site Tong Xunwang reported that the black market price of Paxrovid rose to 50,000 yuan per box in December last year.In and outside China, there have been continuous reports that Chinese pharmaceutical companies will produce cheap generic drugs under the license of Pfizer. CEO Bulla also said, “There is no discussion at all.”However, I asked a Chinese pharmaceutical company to produce Paxrobead, and they said that this product will continue to be supplied to the Chinese retail market. Thousands of people have already gone in and millions more have been supplied in recent weeks. One box of Paxrovid is sold at 2,300 yuan in the Chinese retail market, and the black market price has risen to 50,000 yuan) due to a shortage.Paxrovid is considered the most effective treatment for COVID-19 so far. It is said that if symptoms appear and taken within five days, the probability of hospitalization and death is reduced by 89%. According to an analysis released by the Central Disease Control Headquarters last year, 81% of domestic patients who took it answered that their symptoms improved.
As the news of the breakdown of the negotiations spread, there are complaints on the Chinese Internet, saying, “The death toll from COVID-19 is soaring, and the government, which shouts ‘People’s World’ at the end of every word, is going to give up people’s lives for such a price. China’s state-run media and the commentary unit of the Chinese propaganda authorities, called the “Umao Party,” are enthusiastic about the propaganda, saying, “Paxrovid is not effective and has many side effects,” and “Multinational pharmaceutical companies are trying to make profits by taking advantage of the explosion of COVID-19.”China’s Nat
JULIE KIM
ASIA JOURNAL
