As the world continues to be affected by the ongoing coronavirus pandemic, the medical sector is continuing to receive government funding to not only for the care of those suffering from the disease, but the manufacturing of the vaccine to help prevent the spread in the future. But how will many of the privately-owned companies benefit from this? In this article, we will be showcasing some of the ways that these private firms will be making money from the recent increase in demand for medical products.
Financial Gains From Increased Demand
One of the ways that distributors have become one of the most profitable businesses is through the increase in supply and demand. With many people needing more medication as a result of the pandemic, these companies have financially gained from the expansion of this sector and the mass production of not only more medication to meet the demand but also the vaccines at this current moment in time.
Funding For Covid Vaccines
When it comes to looking at the Covid vaccines that have been established, it is clear to see that there is not only government funding coming into this, but also several other privately-owned companies in the industry that are set to profit from funding the project. With a number of the vaccines being both governments funded and funded by private companies, several of the largest contributors are set to make money from the sale of the vaccine to the world governments. However, how much these companies are set to profit from this will vary on their own price mark-ups.
Companies Charging For Vaccines
With the AstraZeneca vaccine being the most privately funded vaccine out there on the market at this time, a number of the companies involved are set to profit from selling the vaccine. In the case of the AstraZeneca vaccine, Johnson & Johnson have said that they will be selling the vaccine for a price that will only cover the costs which come out to about £3 per dose.
However, Moderna is pricing their price per dose much higher at around $37 meaning that they are likely to profit greatly from the sell of this vaccine in the US and other parts of the world.
How Does This Impact The Growth of The Pharmaceutical industry?
Though a number of these pharmaceutical distribution UK based companies do not want the public to see them profiting off of a global pandemic, it is clear to see that a number of these smaller companies involved in the creation of the vaccine are set to profit greatly as they are sold to everyone in the world. But how will it change the future of the industry as a whole? With many governments in agreement that this is a disease, we will be living with for the rest of our lives, the increased funding for the production of vaccines and the transportation of such medication is likely to remain. This will benefit the industry greatly as it is likely to lead to rapid expansion in the industry as a whole.
Regardless of how long the virus continues on for, we are set to see the pharmaceutical industry continue to expand for at the very least the next 10 years. How do you think the industry will expand moving forwards?