Serum Institute of India CEO Adar Poonawala has made a special appeal for the vaccine industries in Davos. Adar Poonawala has demanded development and fixing a fair price for renewables. “We should be empowered to set the right price for our products,” Poonawalla told Business Today Executive Director Rahul Kanwal, stressing that there is no need for promotions or discounts in the vaccine sector, but greater price control. Need relief from.
Poonawala said that some vaccines are sold at a lower price than shoes or slippers sold on the roadside. He said, ‘We talk about selling the vaccine for Rs 1 or Rs 200, but if someone is selling it even for Rs 300 or Rs 400, then it is not wrong. Regarding the increasing financial pressure on the business, the billionaire said that the price of the vaccine is being reduced without consultation, and not increased.
What is the challenge in the vaccine sector?
Adar Poonawala explained the challenges of the vaccine industry by comparing it with booming sectors like IT, auto and finance. He said, ‘The IT industry earns Rs 1 billion every quarter. Whereas vaccine industries are not able to earn Rs 1 billion a year,’ he lamented, adding that vaccine manufacturers lack capital to invest in research or create jobs.
Adar Poonanwala said that even if someone else has made the vaccine, but if you are making it in India, then the biggest thing is that the company should have the freedom to decide its price. The price and other components of the vaccine should be decided in the meeting with the industry. Poonawalla warned that without reinvesting profits, the industry cannot achieve success or develop the next generation of vaccines.
He said, ‘If you want to see India producing global giants like Pfizer or GSK, then the opportunity must be there. These companies are worth $100-200 billion, while we struggle to cross $1 billion.
No plans to launch IPO right now
Poonawala rejected the possibility of taking Serum Institute public soon. ‘With price control, you cannot list a vaccine company. Even if volumes increase, margins are limited at 10-15%. Investors will question our valuations,’ he explained, adding that listing could be considered after 5-10 years when the company has a more robust pipeline and multiple revenue streams.