India's SII appeals to US President against ingredient export ban

Serum Institute of India (SII) chief executive Adar Poonawalla has appealed to US President Joe Biden to lift the US embargo on exporting raw materials to help ramp up COVID-19 vaccine production. As the world grapples with vaccines short supply, Mr Poonawalla has flagged the US embargo on raw material exports.

The SII is currently manufacturing the anti-coronavirus vaccine Covishield, developed by AstraZeneca (LSE: AZN) and Oxford University. The SII has already delivered over 100 million doses to India and exported around 60 million doses to other countries.

Tagging the Twitter handle of the US President, Mr Poonawalla wrote: "Respected @POTUS, if we are to truly unite in beating this virus, on behalf of the vaccine industry outside the US, I humbly request you to lift the embargo of raw material exports out of the US so that vaccine production can ramp up."

Mr Poonawalla's tweet follows Oxford-AstraZeneca's legal notice to the Pune-based Serum Institute for delays in deliveries. The SII chief had earlier admitted that the Indian company has been facing problems in sending out the required batches of COVID-19 vaccines due to bureaucratic and government-related hurdles.

The export embargoes prevent US vaccine makers from exporting shots globally.

Aimed to protect likes of Pfizer, J&J and Moderna

The US action is meant to ensure local supplies for US vaccine makers like Pfizer (NYSE: PFE), Johnson & Johnson (NYSE: JNJ), and Moderna (Nasdaq: MRNA). Covid-19 vaccine makers in India have been concerned that the use of the Defense Production Act by the USA to boost its own vaccine production was resulting in export curtailment of critical raw materials. This, the companies state, is hobbling vaccine production.

The SII CEO’s move has triggered a string of reactions on why raw materials could not be sourced locally. Covaxin-maker Bharat Biotech, too, is reportedly having issues with the adjuvant that is sourced from the USA. Covaxin is co-developed by the ICMR and Bharat Biotech.