InvestorQ : What is the estimated loss that Serum Institute is estimated to have incurred due to the fire at the plant? Will it have any long term impact?
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What is the estimated loss that Serum Institute is estimated to have incurred due to the fire at the plant? Will it have any long term impact?

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Mary Joseph answered.
1 month ago
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While the actual losses of the Serum Institute fire and the net loss post insurance are still being investigated, there are some highlights that we can cull out of the details available. Here are some key highlights.

· Serum has pegged the losses it suffered at over Rs.1000 crore on account of the fire that erupted at its premises. The state government is already investigating if the blaze was an accident or sabotage.

· As per early estimates, the extent of damage was more than Rs.1000 crore because of the equipment and products that were to be launched. Poonawala has also assured that the critical Covishield vaccine production was not impacted due to the blaze.

· The incident took place in the building where COVID-19 vaccines were not being stored. The fire actually hit the facility meant for the Rotavirus and BCG vaccines which suffered major damages in the fire and those schedules are likely to be affected.

· However, the management of Serum is confident that they would make up for any supply gaps through their other facilities. The new building where additional production capacity was being put in place has not been impacted by the fire.

· However, Adar Poonawala has added that apart from the financial losses suffered by the company due to the fire, the incident was likely to impact the production of BCG and Rotavirus vaccines in the future. BCG is used to treat Tuberculosis.

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