The US government will pay Pfizer Inc nearly $2 billion for 100 million additional doses of its Covid-19 vaccine to bolster its supply as the country deals with a nationwide surge in infections.
Under the new agreement, Pfizer will deliver at least 70 million doses by June 30 and the rest no later than July 31, the company said on Wednesday, bringing the total number of doses to 200 million for a total price of about $4 billion.
The purchase price amounts to $19.50 per shot and is slightly higher than the $18.90 per dose that Reuters has reported the European Union has agreed to pay. The shot has been authorized for use in EU and the US.
The US agreement with Pfizer comes after growing concern that the government had not done enough to source doses of one of the two authorized vaccines, made more pressing amid a Covid-19 spike that has left hospitals struggling to find beds for the sick.
Pfizer’s two-dose vaccine, developed with German partner BioNTech, is being rolled out across the US after the shot won emergency use authorization earlier this month. The country has also authorized a vaccine from Moderna Inc.