Serum plans to set up manufacturing plant in Africa, says Adar Poonawalla

The Serum Institute of India (SII) is considering setting up its first manufacturing plant in Africa as it looks to expand globally after its success in selling COVID-19 shots, its CEO Adar Poonawalla said.

Africa was the only continent that did not have its own manufacturing capacity for COVID shots during the worst phases of the pandemic in the last two years, leaving it at the mercy of suppliers from overseas, including the SII.

"It's never been a better time to be a vaccine manufacturer. I'm looking at expanding our manufacturing across the globe," Poonawalla told Reuters during an interview at the World Economic Forum in Davos.

Poonawalla has told CNBC-TV18 that the world's largest vaccine maker might have to destroy a minimum of 200 million doses of COVID-19 vaccine as there is an oversupply. Speaking exclusively to CNBC-TV18 at Davos, Poonawalla said, "We will lose 200 million doses of vaccines minimum. We might have to destroy them as they are nearing expiry by August-September this year."

Poonwalla is advocating a global pandemic treaty and proposing that next time there is a framework for leaders to work with rather than having to negotiate.

After Covishield for adults, Serum also produced the Covovax vaccine for those in the age group of 12-18 years. The company has submitted all the research documents related to the vaccine for administration in the 2-11 years age group to the Drugs Controller General of India (DCGI).

"Children also need to start getting vaccinated. We hope that picks up, and that's the only age group left to be vaccinated," Poonawalla said.

India's drug regulator had approved Covovax for restricted use in emergency situations in adults on December 28 last year and in the 12-17 age group, subject to certain conditions, on March 9.

Globally, SII has sold 80 million doses of Covovax and expects to sell another 100 million doses. The company is hoping to get USFDA approval for Covovax by June this year.

SII is making a cervical cancer vaccine, and it is expected to launch in November-December this year. It is also mulling launching a 6-in-1 vaccine for children, a 5-in-1 meningitis vaccine and a vaccine for Malaria. SII is also starting clinical trials for a dengue vaccine.

Poonawalla also said the firm might raise its stake in Biocon-Biologics by a couple of percentage points soon.

Poonawalla said the company recently got the approval of the Competition Commission of India (CCI) for Biocon-Biologics merger. It may raise the stake in Biocon-Biologics by a couple of percentage points in the near future. "We are sticking to retail finance and low-ticket loans," he said.

For Poonawalla, the final investment area will be green energy. "Green energy is a new entity we've formed. We have made some personal investments in mid-sized companies like Wellness Forever and Mylab," he said.

Wellness forever has also received Sebi's approval for an IPO which is a matter of time once the market stabilises. "I don't like investing in large-scale businesses that can't turn profitable," he said.