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A country being charged less because they paid for R&D makes perfect sense to me if pricing is being done at an at-cost basis. Also, put another way, those EU
by petertodd 6y ago
A country being charged less because they paid for R&D makes perfect sense to me if pricing is being done at an at-cost basis.
Also, put another way, those EU countries are probably getting charged less than the average costs to actually make the doses themselves. That's fine.
- gnomewascool 6y agoIn principle it makes sense. An issue is that R&D is a fixed cost rather than a variable cost, so determining how the R&D costs are to be split among AZ's customers is pretty hard and potentially prone to abuse. Are they to be split among all expected customers before the pandemic ends? All expected customers during the lifetime of the vaccine? During the lifetime of this family of vaccines? Given that apparently it makes up the majority of the price, it's quite an important detail.