Govt to establish STZ for manufacturing of vaccines

LAHORE: The government is set to establish a Special Technology Zone (STZ) to start manufacturing of vaccines after Pakistan emerges as a potential candidate to start vaccine production indigenously.

Sources told The News that the federal government has been thrashing out a legal and regulatory framework to establish a Special Technology Zone to enable approvals of vaccine products, ensure regulatory standards, quality assurance and fair pricing at the international level.

Currently, at least 70 per cent of global vaccines, supplied through GAVI, are being produced in India. When the corona pandemic raged, the Indian government gave $600 million grant to two companies Serum Institute of India and Bharat Biotech – to enhance their capacity of vaccine production. However, as Delta variant hit India hard, the Modi government banned export of vaccines for four months. It created realization among global stakeholders that over-dependence on one source may create shortage of vaccines in the developing countries.

As Pakistan becomes prime candidate in Asia to start vaccine production, the WHO wants the government commitment to support vaccine manufacturing as this cannot sustain without buyback agreement. Indonesia too has made international commitments of a buyback agreement. A ministerial team even lobbied for its vaccine producers at global forums earlier this year in Geneva in its efforts to start COVID vaccine production in Indonesia. The officials also negotiated transfer of vaccine technology to Indonesia.

Official sources told The News that a Lahore-based pharmaceutical company has already set up a maiden vaccine plant in Pakistan to start local production of vaccines after the World Health Organization’s (WHO) granted approval to the firm. Earlier in 2013, the Gilead Sciences, a global biotechnology company in the US, awarded a contract to the same company for the provision of Sovaldi (Sofosbuvir Tablets) to Hepatitis C patients in Pakistan only at 2 per cent of its international price. Again in 2020, when the Gilead got Emergency Use Authorization (EUA) approval for Remdesivir for COVID19 treatment, it made agreements with five pharmaceutical companies – four Indian and the same company from Pakistan – to manufacture, compete and sell its licensed product to 127 countries.

“We have set up a plant with a capacity three times higher than our national requirement, but the government’s assurance of buyback will set it rolling,” confirmed CEO of the company. “The production of additional doses of vaccines to supply to other developing countries will not just fulfill a global responsibility but to earn valuable foreign exchange to support Pakistan’s economy as well,” he said, adding that the vaccine production in bulk will help bring cost per unit down.

Presently, it may be mentioned that Pakistan’s universal vaccination programmes are implemented with GAVI’s support, or until recently through COVAX initiative or support from China during the COVID-19 pandemic.

“Epidemics are a major threat to public health,” Prof Dr Javed Akram, vice chancellor of University of Health Sciences (UHS), said, adding that influenza alone causes high mortality rate every year due to lack vaccination coverage under government’s immunization programme. Every year, it is learnt that only 200,000 people purchase influenza vaccine from market, while millions remain deprived of vaccination against influenza.

The experts are of the opinion that Pakistan needs some strategic thinking to compete internationally, create conducive environment for international vaccine producers, and do lobbying at global forums like WHO and World Trade Organization (WTO) to push Pakistan’s case to set up its first vaccine manufacturing plant in the country.

“Unlike other products or medicines, vaccine is not a market-driven product. Even the richest countries like the US and Japan purchase vaccines to inoculate people against diseases,” the officials said, adding that the Asian Development Bank (ADB) has given Pakistan a $700 million package for vaccine procurement.

Like all countries, the medical experts believe that the government of Pakistan too has to take financial burden of vaccination if it wants it population to remain healthy and play a productive role in the country. “It will enable Pakistan to ease tremendous pressure on the healthcare system and hospitals only to reap rich dividends later through vaccination as part of a preventive strategy,” they added.

The official sources said although the federal government has no compulsion to make an agreement with any particular company, interested companies demand sovereign guarantee of a buyback. In return, the officials claim the government shall hold manufacturers responsible to produce quality vaccines as per WHO standards within the stipulated time and ensure their availability at a competitive price internationally.

Sources told The News that the federal government is reluctant to give the guarantee of buyback of vaccines as it had to suffer a setback in the case of Independent Power Producers (IPPs).

Whereas the government guaranteed the rate of return in dollars to IPPs, the official sources claimed that in case of vaccines, the companies will be liable to reduce prices if they fall globally. However, the prices should remain competitive, keeping in view the dollar-rupee parity, to prevent artificial paucity or lowering of the quality of vaccines in the market.

Talking to The News, Special Assistant to Prime Minister on National Health Services Dr Faisal Sultan confirmed that the federal government is working to set up a Special Technology Zone to facilitate vaccine production in Pakistan. “The Special Technology Zone will enable to get approvals and assurances of regulatory standards, quality and pricing of the products at one place,” he said and expected it to start operation in mid-2022 onwards.

However, he said the federal government cannot commit buyback of vaccines until related issues of quality of WHO standards and pricing at the time of delivery are sorted out with the interested parties. “Currently, we have enough vaccines in stocks for COVID-19 inoculation campaigns,” he said, adding that Pakistan would require vaccines for various other vaccine-preventable diseases like polio, measles, DTP, influenza. “We are also strengthening academia, universities, research institutes and Drug Regulatory Authority of Pakistan (DRAP) to promote a preventive strategy in the country,” he informed.