COVID-19 vaccines are big business and spell big bucks for big pharma companies  

Even after 67 million COVID cases and 1.5 million deaths, there seems to be no end to the pandemic in sight. But the year is about to end on high promise, with at least four vaccines set to hit the market.

Vaccines are normally administered to children between 0 to 10 years. There are some like the Pneumococcal and Flu Vaccine, which are given to adults seasonally. However, the difference with COVID 19, is that virtually the entire world is a potential market to protect the present global population of 7.8 billion.

Medical experts say that to achieve ‘Herd Immunity’, at least 70 percent of the population needs to be covered, which means around 5.5 billion people. Most potential vaccines require two doses. This adds up to 11 billion doses.

This huge demand automatically offers tremendous scope for Vaccine makers and big Pharma. They have been quick to realise and in India, Dr Reddy’s, Bharat Biotech, Hetero, Aurobindo, Zydus Cadila and Strides Pharma have moved in to get a slice of the big pie through global and domestic collaborations. Bill Gates, the Microsoft Founder and Bill & Melinda Gates Foundation has repeatedly stated that India will be the key player producing more than half the world’s requirement with its strength in drugs and vaccines.

In addition to the manufacture of vaccines, an entire ancillary industry to make vials, syringes, packaging, boxes, cold storage, transportation etc will witness a big surge, points out Dr Rao Vadlamudi, pharma veteran and President of the Commonwealth Pharmacist Association.

The two mRNA based vaccines developed by PfizerBioNTech and Moderna Inc are expected to be priced in the range of $20 to $50 per dose. The OxfordAstraZeneca- Serum Institute of India (SII), has indicated a price of Rs 1000/- per two doses in India. The makers of Sputnik V, RDIF of Russia has announced $10 per shot for international market. The prices will differ in countries and also will be lower for a global vaccine alliance that is expected to help nearly 100 low income nations.

Countries with politically strong leadership and regulatory frameworks like the US, UK & some EU nations have taken the lead in pushing for vaccines and fast tracking the process. Not far behind are Russia, China, India and Brazil. At one point, the race was so intense and inward looking that the WHO cautioned against vaccine nationalism.

The caution notwithstanding, several rich nations have been pre-booking vaccine supplies from PfizerBioNTech and Moderna. The UK became the first to start vaccination, with its regulator giving the nod to the Pfizer vaccine on emergency basis. The US & EU are a couple of weeks away from giving ‘Emergency Authorisation’. In Russia, the Govt has started giving the Sputnik V shots and China too has reportedly given its own vaccine.

India, given its population & strength in generic drugs & vaccines, will be both a large market with its domestic demand and also an important supplier of vaccines. The Indian Drug Regulator has three applications from Pfizer, Serum Institute and Bharat Biotech seeking ‘emergency authorisation’. All indications are it’s just a matter of weeks before a favourable decision is taken.

Pfizer, which has a well-established presence in India, will be catering to the affluent who can afford to pay the price. For mass vaccination and procurement by the government, the Serum Institute and Bharat Biotech versions will have to be the mainstay. The Government of India’s operational target is estimated to be to innoculate 700 m to 750 m people in 6 months to a year. The commitment from the Government is reportedly Rs 35,000 crore over a year.

Administering the Pfizer vaccine, which is expensive and also requires storage temperature of -70 degrees C is a tough call, as several experts including Dr Gagandeep Kang, who headed a Central Committee on Vaccine Development said. Therefore, the country has to bet on its indigenous Covaxin’s success from Bharat Biotech- National Institute of Virology, Zydus Cadila and the largescale production of Oxford-Astra Zeneca Vaccine by Serum Institute and Sputnik V by Dr Reddy’s and Hetero in the first half of 2021.