SII puts Indian demand for COVID-19 vaccine above exports

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Representative Image (AFP)

Representative Image (AFP)

Pune-based Serum Institute of India (SII), the world’s largest vaccine maker, is focusing on meeting Indian requirements before turning its sights to overseas markets for its Covid-19 vaccine, people familiar with the company’s plan said.

“Once the supply-demand situation eases in India, we will think about exports,” said one of the people, requesting anonymity.

A spokesperson for SII declined to comment.

SII, which manufactures the vaccine developed by AstraZeneca Plc and Oxford University under the brandname Covishield, produced 150 million doses last month and is expected to maintain that level of output in September. The company produced 110-120 million doses in July.

Along with Bharat Biotech International’s indigenously developed Covaxin, it was one of the first two vaccines that received approval from the Indian drug regulator. Covishield has been approved for emergency use by the World Health Organisation (WHO).

According to CoWIN, the online platform used to implement and monitor the vaccination drive, India has so far delivered over 665 million doses of Covid-19 vaccines for domestic inoculation — 582 million doses of Covishield, or 87 percent of the total, and about 80 million doses of Covaxin.

India now vaccinates more than 5 million people a day on average; it needs  at least 2 billion doses to cover the entire population.

Overseas obligations 

Last year, SII pledged to provide 550 million doses of Covishield to COVAX, a global initiative for the equitable distribution of jabs to people in 92 low- and middle-income countries.  The company also received $ 300 million funding from the Bill & Melinda Gates Foundation.

 The prioritisation of domestic demand led to significant delays in delivering the vaccines to COVAX, placing the company at the risk of litigation for not adhering to supply contracts.

COVAX, which was set up a year ago, shipped more than 77 million doses to 127 countries by the end of May. The initiative is led by the Global Alliance for Vaccines and Immunization (GAVI), WHO and the Coalition for Epidemic Preparedness Innovations.

Of the total vaccines shipped, 30 million doses were supplied by SII. India had shipped 66 million doses of vaccines overseas through donations, bilateral arrangements, and sales. The exports were halted in April as the country coped with a deadly second wave of the coronavirus disease.  The restriction on exports didn’t go down well with SII.

“Over 150 countries are dependent on SII for vaccines and are blaming the company for stopping the supply during a crucial period,” PTI quoted Cyrus Poonawalla, chairman of SII, as saying on the sidelines of an award function in August.

“These countries have paid crores (of rupees)  in advance to the company,” Poonawalla said, adding that the Bill and Melinda Gates Foundation and WHO had also paid it Rs 5,000 crore.   Poonawalla had offered to return the money to the Foundation and WHO, but they declined in the hope that the Indian government will lift the ban on exports soon, he said.

Monthly vaccine manufacturing capacity is expected to rise to about 360 million doses by the year-end, CARE Ratings said in a report.  With Bharat Biotech expanding Covaxin production, Sputnik V Indian contractors ramping up supplies, and Zydus Cadila’s expected introduction of ZyCoV-D vaccine, the supply situation is expected to ease by October, by when the government may possibly look at allowing exports. 

 “Nobody knows when the government will lift the restrictions on COVID-19 vaccine exports, we have fully vaccinated only 10 percent of the population, so there is a long way to go,” said Prof Amir Ullah Khan, Research Director, Centre for Development Policy and Practice (CDPP).

On the business side, Khan says it will have an impact on SII, as it has received millions of dollars in advance for supplies.

“They may have to return that money if they can’t supply in foreseeable future,” Khan said.

Khan also added that the world may not see India as a reliable supplier, which will benefit China, as it is making deep inroads in low and middle-income countries with vaccine diplomacy.?