The order book of VAV Life Sciences was full and its production facility in Ratnagiri was already running three shifts. But it just got busier for the Mumbai-based biopharmaceutical company, following the widespread emergence of ‘black fungus’ across the country. VAV makes the crucial lipid ingredient needed for Liposomal Amphotericin B, used to treat the fungal infection.

Unique position

A nanotechnology research-based company, VAV makes lipids used in drug delivery and holds the unique position of being one of four global companies that makes phospholipids for mRNA Covid-19 vaccines. In fact, it supplies highly purified synthetic phospholipids to a US-based contract development and manufacturing organization that supplies Pfizer and Moderna for their mRNA vaccines. As a result, VAV was already in the process of increasing production capacity.

Simultaneously, even as it was expanding its portfolio to other therapeutic areas, including fungal infection, instances of ‘black fungus’ began to emerge and the requirement for the lipid ingredient shot up. “They are not the same lipids that are used in the vaccines, but they are from the same family, though needing distinct production lines,”explains Arun Kedia, Managing Director, VAV Life Sciences. The company is increasing its production capacity from a “modest”21 kilograms per month that is comparable to one lakh vials to 130 kilograms or six lakh vials, by December, at an investment of ₹12 crore. Since the need is immediate, the funds will come from a bank, but the company is open to off-loading minority equity, he told BusinessLine .

The research-based company, however, has an ask of the government. With lipids being an important part of drug delivery technologies for the future, Kedia said, “The government should support the manufacturing of lipids.”

The unprecedented demand of Liposomal Amphotericin B has put tremendous pressure on the supply chain for raw materials. And, VAV now becomes one of two companies globally (the other is in Germany) to supply this highly purified synthetic lipid. Several local pharmaceutical companies that are ramping-up production of this injectable to plug the supply crunch are in talks with VAV, Kedia said.

mRNA vaccines

VAV has completed its mRNA vaccine-related orders for the first half of the year and is in discussions for the next half, he said, adding that it would be a steady revenue generator for the company.

“While a lot of importance has been given to the bottling and distribution of vaccines, there is little understanding of the science behind the formulation of lipid nanoparticles. The LNP technology is considered a medical breakthrough in vaccine-delivery systems. It has enabled the development of mRNA-based Covid-19 vaccines at a blistering pace,” Kedia said.

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