This article is from WeChat official account:Feng Lun Feng Ma Niu (ID: fengluntalk), Author: Mao Hongtao, Chief Editor: Wang Tao, Editor: Chen Runjiang, Consultant: Wang Shuqi, Head Picture from: “White Tiger”
“I will stay in London for a long time because I don’t want to go back to that situation. Everything is on my shoulders, but I can’t solve it alone!” At the end of April, the CEO of the Serum Institute of India Ah Dar Poonawalla (Adar Poonawalla) said frustratedly in an interview with The Times.
Oxygen shortage, rampant black market, floating corpses in the Ganges…In India, where the daily average number of new cases exceeds 300,000, scenes of tragedies are still happening. Under the dual promotion of natural and man-made disasters, India is becoming the “new epicenter” of the global epidemic. At this time, accelerating the vaccination rate of the new crown vaccine is critical to curbing the spread of the epidemic. The Serum Institute of India is the most important part of it.
As the largest vaccine manufacturer in India, the Serum Institute of India (Serum Institute of India) is not only an “Oxford-AstraZeneca vaccine” The main producer of COVID-19 also has production lines for the other four vaccines. If production is at full capacity, the new crown vaccine it produces will account for half of the global supply. However, even such an important company was very weak in the face of the second epidemic in India. Its CEO even “fleeed” to the UK with his family.
India is known as the “World Pharmacy”. Just 3 months ago, Prime Minister Modi proudly declared that “India has controlled the epidemic and is ready to deliver anti-epidemic experience to other countries.” The Serum Institute of India is “India The important force of manufacturing”(Made in India). So, what kind of company is this? In a developing country, how did it rise to become the world’s largest vaccine manufacturer, and how did it fall into the current dilemma of the new crown vaccine?
Selling vaccines with small profits but quicker profits
India has a long history with vaccines.
In 1897, the French Jewish microbiologist Waldemar Haffkine (Waldemar Mordechai Wolff Haffkine) developed in Mumbai, India The world’s first dose of plague vaccine and cholera vaccine, and the establishment of the “Mumbai Bacteriology Laboratory”, laid the foundation for India’s vaccine business.
In 1947, shortly after the “Independence Act of India” was promulgated, India joined the WHO (World Health Organization). In order to increase its influence internationally, under the initiative of the WHO, the Indian government began to deliberately guide the development of the domestic pharmaceutical industry, including the vaccine industry.
It is strange that in the 30 years after India’s independence,India has responded positively to the attitudes of WHO and UNICEF on the one hand, but on the other hand, it has not taken the initiative to develop children’s vaccination plans. Without continuous and stable investment from the government, Indian state-owned vaccine companies are simply unable to develop vaccines that were globally popular at that time. They can only rely on imported ready-made vaccines, repackaged and distributed to hospitals everywhere.
Hafkin Commemorative Stamp
The inaction of state-owned enterprises has made a group of business-minded people ready to move. Cyrus Bonawara, founder of the Serum Institute of India(Cyrus S. Poonawalla) is one of them.
Sellers’ ancestors were also prosperous, but there were too many in the family. When the huge family property was distributed to his grandfather, only a house and a pasture were left. When it was passed on to his father, the family had to rely on breeding and racing horses. gave birth.
Sellers was born in 1941 and caught up with India’s independence at a very young age. He has a deep understanding of the changes in the Indian economy after independence. In his view, horse racing was very popular in British India, so this business was profitable. However, in post-independence India, not so many people spend a lot of money on buying, raising, and racing horses. The final fate of those horses was sold to the research institute as a living container for cultivating serum.
After graduating from medical school in 1966, Sellers took over the family business, and immediately stopped the fading horse racing business and changed it to the “Indian Serum Institute”, specializing in the production of basic vaccines. The technology was all taken from abroad. “Come. In the second year of its establishment, it began to produce tetanus antitoxin and tetanus vaccine. Eight years later, the pertussis-diphtheria-tetanus triple (pertussis) vaccine was produced. It was only ten years after the establishment of the Serum Institute of India that it had its own products.
The survival strategy adopted by Sellers is very simple: Invest the cost first, buy the most basic vaccine technology, and then seek independent research and development after it is put into production and profitable. Because the tetanus vaccine, diphtheria vaccine, and whooping cough vaccine are all technologies that have been very popular around the world at that time, the purchase cost is low, but almost everyone has the opportunity to vaccinate.
Under the background that state-owned vaccine companies are uncompetitive, Sellers has occupied a large area of the Indian market at prices far lower than imported vaccines. Not only that, Sellers also learned from the Indian government, actively contacted the WHO and UNICEF, and took the lead to brush up on his presence.
As a result, the Serum Institute of India made a very substantial profit soon after its opening, and capital is a necessary condition for the development and growth of a pharmaceutical industry. Sellers used the common strategy of small profits but quick turnover in the retail industry to break into the pharmaceutical market with extremely high barriers to entry.
Wonderful opportunities brought by giants “abandoned sons”
In 1990, a miraculous vaccine became popular in India.
That is a vaccine specifically for neutering bulls. It only costs less than 1 rupees(about 0.31 yuan) Bull sterilization, no surgery, no anesthetics, and no influence on androgen secretion, simply and easily solved the problem of the proliferation of “bull” in India. At that time, agricultural colleges in many countries used this as a case, but few people were interested.I realized that the birth of the ingenious and practical technology of “Bull Sterilization Vaccine” is marking the outbreak of the Indian vaccine market.
In the 1990s, the degree of economic liberalization in India increased, and state-owned vaccine companies that adhered to the rules were completely eliminated from the market. At this time, the world’s top pharmaceutical companies, such as Pfizer, Merck, and Sanofi, are all conquering high-end vaccines. Traditional vaccine production lines such as cholera, whooping cough and tuberculosis are gradually being phased out. The global supply is seriously insufficient, such as the Serum Institute of India. Manufacturers of traditional vaccines seized the opportunity to stand out.
In 1994, relying on the relationship established with WHO and UNICEF in the early years, and the ability to produce traditional vaccines over the years, the Serum Institute of India products began to be officially supplied to United Nations agencies. Only 4 years later, these vaccines have been exported to more than 100 countries and regions.
In 1999, the Serum Institute of India became the world’s largest manufacturer of measles vaccine and DTP vaccine.
The popularization of traditional vaccines in underdeveloped areas is an important work of WHO and UNICEF
While enjoying himself in the mall, Sellers has not forgotten to train his successors.
In 2001, Adal Bonawara graduated from the University of Westminster in the United Kingdom and formally joined the Indian Serum Institute. Adal Bonavara is Sellers’ most valued son. He was sent to the UK to study since he was a child. After returning home, the 20-year-old heir was appointed as CEO. Sellers himself retired to chairman. At the same time in charge of other business of the family.
Adal, who has been “studying abroad” for many years, brought new ideas for the development of the Serum Institute of India. Adal understands that traditional vaccines are the company’s largest source of income, but on this basis, the well-capitalized research institute has the strength to make it into the high-end vaccine market.
In 2004, the Serum Institute of India launched the world’s only adsorptive liquid rabies vaccine. In 2007, the Haemophilus influenzae vaccine and the BCG vaccine against bladder cancer were launched. 2010In 2009, the H1N1 flu vaccine was launched. In 2012, it acquired Bilthoven Biologicals, a Dutch biomedical company, and became one of only four companies in the world that can produce injectable polio vaccines, and successfully entered the European vaccine market.
Under the management of Adal, the Serum Institute of India not only has a huge traditional vaccine production base,it also has the ability to further produce high-end vaccines.
More importantly, In the 21st century, more than 85% of the income of the Serum Institute of India comes from overseas, it has a high share in the field of pediatric vaccines, and 65% of children in the world have at least I was vaccinated once with a vaccine from the Serological Institute of India. “Provide protection from birth” has become the slogan of the Serum Institute of India.
Heavy basics, dare to spend money, and internationalize. In the hands of “Creation II” Adal, the Serum Institute of India has been recognized as the largest biotechnology company in India for many years. When India made its name as the “World Pharmacy” with generic drugs, vaccines became the most accessible gold sign of “Made in India”.
New crown vaccine, a big bet
On May 31, 2012, Bill Gates said excitedly on Facebook: “I am so honored to be invited by Dr. Sellers and his son Adal to visit the Indian Serum Institute!” This short briefing The visit made Bill Gates aware of the overlap between the careers of Sellers and his son and the direction of the Bill Melinda Foundation.
After the outbreak of the global epidemic in 2020, the research and development and production of the new crown vaccine have become the focus of attention of pharmaceutical companies. A long time ago, the Serum Institute of India was already a member of GAVI (Global Vaccine Alliance). Bill Gates is also a well-known GAVI Donor.
Due to the complexity of the development and production of the new crown vaccine, the Serum Institute of India handed out olive branches to several major vaccine developers and was willing to participate as a manufacturer. This is undoubtedly a gamble–
First of all, The production and storage conditions of each vaccine are different. The Serum Institute of India cannot use the existing production line to modify it. It must invest in a new plant. Where does the huge investment come from? this is a big problem.
Secondly, everyone knows that the new crown vaccine is in short supply, but is the new crown virus short-lived or will it exist for a long time? This means that the price of the new crown vaccine will be parabolic after it is put into production. If the virus is short-lived, can the manufacturer recover the huge investment in the early stage?
Finally, The development time of the new crown vaccine is too short, and its safety is incomparable with traditional vaccines that have been used for decades. If there are a large number of adverse reactions during use, or the production of raw materials is in short supply, production may be forced to stop. Once competitors quickly fill up positions to seize the market, the previous investment will be lost.
Knowing that there is such a big risk, the Serum Institute of India has to place a heavy bet on the uniqueness of “people without me”.
In the beginning, it was impossible to build a new plant in a short period of time only with the capital of the Indian Serum Institute. At this time, Bill Gates took the lead in expressing his willingness to support some of the funds. Then the Indian government, which advertised “Made in India”, also came forward and was willing to invest. With the plant, Adal used his many years of contacts in the UK to negotiate the “Oxford-AstraZeneca Vaccine” cooperation agreement.
Everything seems to be heading in the direction of Adar’s hope. Although the “Oxford-AstraZeneca vaccine” has been questioned due to a large number of adverse reactions, the new crown vaccine produced by the Serological Institute of India has been injected into people’s bodies in more places that are eager to get rid of the epidemic. Soon after, several other vaccine developers decided to cooperate with the Serum Institute of India. It is almost foreseeable that This company, which used to be good at traditional vaccines, will become the world’s largest producer of new crown vaccines.” The Economist and the Financial Times all expressed positive views on this.
India Serum Institute Vaccine Production Line
But the world always fails to meet people’s wishes.
Due to the repeated epidemics in the United States, Biden has not stopped Trump’s “vaccine raw material export ban” since he took office. In April this year, some Indian media predicted that if the ban is not lifted, the vaccines produced in India will Production was discontinued due to lack of 37 key raw materials. The Indian Serum Institute, which has a highly international supply chain, is no exception.
At this time, Adal, who has an empty factory building but no rice to cook, is already in utter despair. He revealed that he was threatened by phone calls from some key people, and the vaccine now produced is “If you give X, you can’t give Y, and Z is waiting next to you.” In order to ensure his safety, the Indian government sent five special forces members to personally protect him, and he flew to the UK with his family.
After “fleeing” from India, Adal also posted @拜登 on Twitter, hoping that he would lift the “vaccine raw material export ban” as soon as possible. In the comments below the tweet, some people angrily denounced the U.S. as a “vaccine mafia.” Some people firmly support Biden and believe that “America first” is just.
Adal’s Tweet
Time passed, and Adal’s huge bet, gradually slipping to the passive side of production suspension. But at this time in London, Bonavara and his son, who are worth more than 13 billion U.S. dollars, still have a chance to make a comeback. The United States, which has a population of 330 million and has completed 37.7% of vaccinations, still has the confidence to call itself a “beacon of freedom” even if it is plagued by criticism. Only the faintly weeping by the Ganges, accompanied by the fire, commemorates those who should have had the opportunity to stay, but could no longer stay.
Commercial gains and losses, populism, and life-and-death separation, all converge on a bottle of vaccine produced by the Serum Institute of India.
Looking back at the Indian Serum Institute for more than 50 years and two generations of entrepreneurship, I have to admire the phrase “a vision and a good approach”. It is precisely because of these large and small private companies that India can afford the “world “Pharmacy” is the title of “Made in India” that Modi is proud of.
However, the current dilemma of the Serum Institute of India tells us that the more critical the moment, the greater the weight of the political game, and the more internationalized companies will eventually have to rely on the strength of their home country. Life should be an overwhelming weight, but reality is not always the case.
Data source:
[1]India TV: Success Story of Cyrus Poonawalla: The man behind India’s prestigious Serum Institute of India
[2]Bill Gates: Exporting Hope——The Serum Institute of India, GatesNotes
[3]Martin Fletcher: Adar Poonawalla:’Aggression over Covid vaccines is overwhelming…Everyone expects to get theirs first’, The Times
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[4]Manas Mishra, Aishwarya Nair: India promises more vaccines as daily COVID-19 deaths stay above 4,000, Reuters
[5]Anto T. Joseph: With five vaccines, Serum set for global race, Fortune India
This article is from WeChat official account:Feng Lun Feng Ma Niu (ID: fengluntalk), Author: Mao Hongtao