Moderna CEO Bancel tells senators COVID vaccine price hikes are appropriate
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Moderna (NASDAQ:MRNA) CEO Stephane Bancel told a US Senate hearing Wednesday that the biotech's plan to quadruple the price of its COVID-19 vaccine is fair as it will lose economies of scale in May when government procurement of the shots end.
On May 11, the federal government's public health emergency for COVID will end, making the vaccines available in the private market.
Bancel and his counterpart at Pfizer (PFE), Albert Bourla, have come under fire for plans to drastically raise the prices of their COVID vaccines when they hit the private market. Both companies have said they plan to price the shots at up to ~$130 each.
Wednesday's hearing was convened by the Senate Committee on Health, Education, Labor and Pensions, which is chaired by Sen. Bernie Sanders (I-Vt.).
Bancel noted that after the government shots are in the private market, he expects demand to drop 90%, losing economies of scale. As a result, the vaccine will be offered in single-dose vials or pre-filled syringes as opposed to 10-dose vials when there was government procurement. 
Sanders noted that while Moderna's vaccine was developed with government funding through Operation Warp Speed along with the National Institutes of Health (NIH), the latter was never mentioned during the exec's opening statement.
"While Moderna (MRNA) may wish to rewrite history, it is widely acknowledged that both Moderna (MRNA) and the NIH created this vaccine together,â Sanders said.
Bancel disagreed with Sanders that the NIH helped create its vaccine. He added that the company gave the federal government a $2.9B discount on the vaccine without the former asking for it.
Read why Seeking Alpha contributor JR Research just upgraded its rating on Moderna (MRNA) to buy from hold.
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