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How does that square with AZ charging SA "nearly 2.5 times higher than most European countries"?[0][1]

The Guardian claims that an official claimed that they were told by AZ that the discrepancy is due to European countries having paid for R&D, but anybody in the chain could have been lying.

[0] https://www.theguardian.com/world/2021/jan/22/south-africa-p...

[1] https://www.reuters.com/article/uk-health-coronavirus-safric...




That’s from two different producers, one is AZ in Europe, the other the Serum Institute in India. Maybe they just have different costs.


> How does that square with AZ charging SA "nearly 2.5 times higher than most European countries"?[0][1]

At least you are getting it. We Europeans seem to have pre-funded production and now it turns out much of it is shipped to higher-paying customers first, and we must wait until "production issues" are solved.


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.


In 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.




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