InvestorQ : What are the key challenges that you see ahead of the vaccine launch?
diksha shah made post

What are the key challenges that you see ahead of the vaccine launch?

Dia Deshpande answered.
2 years ago

There are not only challenges, but it is a big source of risk. Most of the global players and domestic players have their skin in the teeth and could potentially lose millions of dollars if things don’t work out. The moral of the story is that the real risk begins now and for the industry it could a big source of business risk in coming months.

The large pharma MNCs in the US and Europe have been exposed to these kind of R&D risks as well as product failure risk in the past. However, for most Indian pharma manufacturers this is a major business risk not seen till date.

For example, Indian companies are betting that demand for the vaccine will be big enough to support the capacity put up. That may not be the case. There are risks like; the demand may be lower, actual immunity levels could improve and not all the vaccine candidates may get final approval.

In fact, some of the Indian players like Serum have admitted that if things don’t work out as planned, it could result in huge losses. It is not just about the manufacturing and marketing risk. There are logistic risks too as the vaccines have to be moved, transported and distributed without any big losses.

For example, Pfizer vaccine needs storage at -74 degrees Celsius; not generally available on mass commercial scale. How vaccines are transported, with maximum efficiency at optimum costs and with minimum wastage; is going to be the big logistic challenge. The risks have begun and it may be challenging times for Indian pharma.