Bharat Biotech will pay a royalty of 5% on net sales of its Covid-19 vaccine Covaxin to Indian Council of Medical Research, prompting concerns from public health and IP experts.
They have questioned the need for the payout, to be done on a half-yearly basis and the basis for the calculation. The pay-out reflects in the cost of the vaccine, and hence impacts affordability, they told media. While the Centre has revised the price to Rs 225 per dose for Covaxin for the fresh order placed in July, it is the most expensive jab in the private market at Rs 1,410.
Junior health minister Bharati Pravin Pawar told Parliament that the royalty “clause is governed by the MoU executed between the two parties (Bharat Biotech and ICMR) for the development of Covaxin”.