How the COVID-19 vaccine will change the Pharma Industry?
With so many recent advancements in the development of COVID-19 vaccination, it is puzzling as to what the impact could be on the pharmaceutical industry of India. Even with Pfizer’s or Moderna’s vaccine trials being 90% + effective, it is still doubtful as to how it could be released in India. This also has a huge effect on the worldwide stock markets. Stock markets around the world had risen sharply after the announcement of successful trials of a second Covid-19 vaccine. Equity prices have been soaring on all the world’s leading stock markets after Moderna proved to be 95% efficient in treating COVID-19. As a result, Indian stocks had also hit an all-time high recently. The industry is also hopeful that the new American president-elect, would potentially bring favorable policies to support the market.
How Biden’s presidency can be good news for the pharmaceutical industry in India
India’s giant drug manufacturers have been dependent on the USA for their export revenues and are hoping that their growth opportunity in the world’s largest pharmaceuticals market will improve under a Joe Biden presidency. Donald Trump had recently boosted the production of drugs locally which was bad news for India, Biden’s stand on it is yet to be seen. However, it is unlikely to see any changes or impacts on the industry before January 2021.
The outgoing president had issued an order in August, informing the agencies involved in the medicines manufacture process to prioritize the purchase from local manufacturers and to reduce the country’s dependency on foreign suppliers.
Obamacare (Affordable Care Act that aimed to provide affordable health insurance coverage for all US citizens) can also be expected to be up and moving, which can improve the growth opportunity for the Indian pharmaceutical industry.
Where does India stand on the COVID-19 vaccine?
With many promising results by large pharmaceutical companies, it is still not clear as to which one will be adopted by India. Another concern is how the government is planning to distribute the vaccine. Four groups have been identified, which in the respective order of priorities are healthcare professionals, police and the armed forces, people older than 50 years, and people below 50 years with health problems. Some are in immediate contact with COVID-19 patients and others who provide critical support services, how the government is going to discriminate between them is still unclear.
The adaptiveness of the Pfizer and Moderna vaccine is still an issue. This is because as far as Pfizer’s vaccine is concerned, India may lack the necessary facilities and equipment required to store and transport the vaccine at -70 to -80 degrees Celcius. The short shelf life (24–48 hours) will also be a major concern here.
The Moderna vaccine however only needs to be stored at -2⁰⁰ and also has a shelf life of up to 30 days. The issue here will be the cost. The present price of the vaccine is above 37 USD, which most likely will be unaffordable for India. 3 USD is the highest we have paid for a single dose of vaccine till now.
Oxford-AstraZeneca vaccine can also prove to be a viable choice. This vaccine choice only requires storage at -²⁰ to -⁸⁰ C, thus it can be stored in an ordinary freezer. Depending on the final tests and the necessary approvals, the average cost of 2 doses of this vaccine is expected to be around 1000 rupees.
Banks depending on local makers for the vaccine may bring delay in the availability of doses
India has the potential to procure a large number of vaccine doses but has up till now has chosen the strategy to fund only local production and not enter into any pre-purchase agreements with the leading global drug-makers. This could delay the availability of vaccines in the country.
Indian companies are in collaboration with Johnson & Johnson for its vaccine candidates, and a tie-up for Russia’s Sputnik V vaccine, but the main concern is that India has made no such pre-purchase tie-ups with the emerging companies with a successful result of the vaccine trials, Pfizer and Moderna, who are expected to launch their products early next year
It is due to the intense rush for the vaccines, that bookings could be a better reliable option at least for the high-risk groups.
The availability of an effective vaccine is the key to the return of normal activities which would provide a big boost to the global economy. Regular activities like public transport, entertainment facilities, dining out and all other activities will also be back and running. The countries which have a shortage of vaccines or do not have a good amount of vaccine can also benefit from the breakthrough because the release of vaccination will boost business and customer confidence which is very essential in areas like tourism.
While the newly elected president of the United States may bring about good news, there are many distinct possibilities as to how the Indian government is going to approach the situation, but the vaccines don’t seem to come all at once, no country has been able to do this, and thus India is prepared to distribute the doses in priority groups.
If you wish to read further on these topics, visit-
