Serum Institute of India: Delivering COVID-19 Vaccines

The Serum Institute of India (SII), the world’s largest vaccine manufacturer by volume, faced a unique challenge in the manufacture and distribution of COVID-19 vaccines to its major stakeholders. SII had COVID-19 vaccine manufacture and supply commitments to COVAX, a joint initiative ensuring equitable access to COVID-19 vaccines for all countries and a transfer technology (licensing) agreement with AstraZeneca PLC to supply its COVID-19 vaccine. However, a sudden surge of COVID-19 cases in India during the second wave of the pandemic sharply increased demand for COVID-19 vaccines in the country, forcing the government of India to temporarily ban the export of vaccines from India. At the same time, a ban imposed by the United States on the export of critical raw materials and components used for vaccine manufacturing threatened to bring the vaccine production process at SII to a halt. SII’s chief executive officer had to now juggle meeting domestic demand within India and fulfilling SII’s international supply commitments. Failing to deliver on the commitments would not only spell legal trouble but also pose long-term reputational and business risks for his company. He had few options to navigate the situation.