Vaccine orders. States may hit a roadblock in global sourcing quest

As more States float global tenders to procure vaccines some of the big vaccine-makers may not be quite in a position to participate in this “fragmented” exercise.

At present, vaccines that can be quickly incorporated into an immunisation programme are those listed by the World Health Organization for emergency use, including vaccines from Pfizer, Moderna, AstraZeneca, Johnson and Johnson (J&J) and Sinopharm. But existing global supply bottlenecks and lack of clarity on the domestic front (States floating their own tenders) indicate that States will find it difficult to procure vaccines from a Pfizer or Moderna, for instance.

Pfizer has indicated that its discussions will be only through the Central government. “Pfizer remains committed to continuing our engagement with the Government of India towards making the Pfizer and BioNTech vaccine available for use nationally....across the world Pfizer will supply the Covid-19 vaccine only to central governments and supra-national organisations for deployment in national immunisation programmes. The allocation of doses and implementation plan within a country is a decision for local governments based on relevant health authority guidance,” a Pfizer company spokesperson told BusinessLine.

Moderna, too, is said to have told the Punjab government that it would deal only with the Centre.

Immunisation has always been through national programmes and a fragmented approach will not work, observed former Health Secretary JVR Prasada Rao. “Besides, there are no excess vaccine supplies as companies have already committed much of their supplies for the next several months,” he added. States competing for vaccines will push up the price of vaccines, he said, and the country loses its bargaining power and economies of scale that come from procuring as a single entity.

Production timelines

Confident of catering to the emergency scenario through a quick scale-up in production and distribution, the Pfizer spokesperson said, “We use a centralised manufacturing approach based on multiple manufacturing sites in the US and Europe.”

Moderna does not have an India presence or partner. The American biotech company is investing in owned and partnered manufacturing facilities, with increased production expected in late 2021 and early 2022. This year’s manufacturing forecast is for 800 million to 1 billion doses.

This being the timeline, industry-watchers say it is unlikely India’s immediate requirement for vaccines can be met.

An industry representative explained:,since vaccines have emergency authorisations in most countries, they will be available only through government channels – meaning, there is no excess stock to tap. Except for Sinopharm and may be Sputnik V, it looks unlikely others have capacity to supply individual States, he added.

Local interest

Meanwhile, domestic drugmaker Zydus Cadila Group has indicated interest in participating in the global tenders. Zydus Cadila Managing Director, Sharvil Patel, said, “We are open to exploring different avenues in making our vaccine ZyCoV-D accessible to people.” The company is in the final stage of submitting its late-stage trial data and seeking regulatory approvals.

Local companies could be interested in these tenders, given the volumes and better pricing, an industry-hand said.

(Inputs from Rutam Vora, Ahmedabad)

COMMENT NOW