Setback For India As US Won't Lift Embargo On Raw Materials, How It's Affecting Vaccine Makers

Despite the diplomatic efforts and Serum Institute of India CEO Adar Poonawalla's appeal to US President Joe Biden on Twitter, Washington is sticking to its stand and has refused to lift an export embargo in some key raw materials that are used in vaccine manufacturing.

US State Department spokesperson said the Biden administration¡¯s first obligation is to take care of the requirements of the American people.

AFP

What's happening?

Earlier this week following several high-level negotiations between India and the US on the subject it was said that Washington had promised to ¡°give the matter due consideration¡± and work with India to ¡°find appropriate solutions¡±.

But on Thursday State Department Spokesperson Ned Price told reporters when asked about the export restrictions on raw materials that is causing slowdown in the production of vaccines in India that ¡°The United States first and foremost is engaged in an ambitious and effective and, so far, successful effort to vaccinate the American people.¡±

As the US has now refused to change its position, vaccine makers in India including Serum Institute, Bharat Biotech the two COVID vaccine makers have been left with no option but to look elsewhere for the raw materials.

AP

The Biden administration had invoked the Defense Production Act (DPA), in February, under which some key raw materials used for Covid-19 vaccines were restricted for export to prioritize them for domestic companies.

A typical vaccine manufacturing plant will use around 9,000 different materials, according to a report by the World Trade Organization. These materials are sourced from some 300 suppliers across some 30 countries.

Reuters

Earlier, Poonawalla had said the unavailability of the raw materials, such as the specific medium needed to grow microorganisms, would prevent Serum Institute from scaling up the production of the vaccine developed by Novavax.

Bharat Biotech had said that the company is facing a shortage of some raw materials that are imported from the US and Sweden due to restrictions by those countries.