Perhaps no person symbolised the fight against Covid-19 quite like Adar Poonawalla, the 44-year-old Chief Executive Officer of the world’s biggest vaccine maker by volume, Serum Institute of India. The massive vaccine roll-out in India, through which well over a billion people were inoculated against the deadly virus, boosted Serum’s revenue and profits. But they have dipped since then. In a conversation with Siddharth Zarabi, Group Editor of Business Today, Poonawalla talks about the path ahead for Serum, his decision to invest in a film production house, and more. Edited excerpts:
Let’s start with the big picture. Serum Institute played a crucial role in the Covid fight. Where does the company stand now?
We faced multiple challenges—[accessing] raw materials, scaling up [production], and global logistics. But we learnt a lot and became more efficient. After the pandemic, many entities globally started exploring vaccine manufacturing. But success in this space requires more than just technology; manufacturing expertise is key.
Post-pandemic, the excess capacity we built had to be repurposed. We refocused on our pre-Covid pipeline—malaria, HPV, and others. The malaria vaccine launched last year is already saving lives in Africa. This year, we are gearing up to provide the HPV vaccine to the Indian government and export to global markets.
We’ve also been working on vaccines for mosquito-borne diseases—dengue, yellow fever, chikungunya—especially as climate change increases their spread. Over the next two to three years, you’ll see these roll out. We’re also looking to expand into Europe and the US, markets that we hadn’t traditionally served.
Were you surprised by the rise of the anti-vaccine lobby?
Not really. During Covid, misinformation and misreporting of adverse events led to doubts, especially on social media. We must continue educating people about how vaccines and immunisation, overall, are safe and vital for disease prevention and a healthier future.
Post-Covid, there were concerns in India linking sudden deaths to vaccines. Have any credible studies emerged on this?
There’s no conclusive evidence linking any vaccine to long-term adverse effects. Some deaths were unfortunately sensationalised or completely unrelated medical events. Most studies and courts haven’t established a direct link, though investigations continue where appropriate.
Covid vaccines got fast-track approvals. Has the industry learnt how to move faster without compromising safety?
Yes. India has instituted progressive regulatory reforms. Earlier, local trials were mandatory for approval, even if global trials were already done. Now, for vaccines tested in top regulatory markets like the US and the EU, the Indian regulator can waive local trials, saving two to three years. Our chikungunya vaccine, developed with (French biotech company) Valneva and already licensed abroad, could benefit from this. At the same time, our dengue vaccine, developed in-house, is undergoing full trials in India.
How large is the Indian market for these new vaccines?
Chikungunya will likely be a travel vaccine, like yellow fever or meningitis. Dengue has wider appeal in regions like India, Southeast Asia, and South America. It’s not globally needed, but demand in these regions justifies the investment.
When do you expect them to hit the market?
Chikungunya in under two years; dengue in about three.
Any new therapeutic areas you’re exploring?
Vaccines remain our focus. We’re working on TB, and our influenza vaccine which alongside malaria and HIV, remains a global health challenge. We evaluated biosimilars and non-vaccine products but decided against them due to high competition, patent complexities, and different skill requirements.
We aim to build our own IP, like our pneumonia vaccine, and reduce dependence on partnerships. Owning the technology gives us more control and sustainability.
Developing vaccines is expensive. How does the pricing policy in India impact innovation?
Vaccine giants earn approximately $40-50 billion annually. We’re at just $1 billion. Developing a vaccine in India can cost $500 million to $1 billion. But pricing in India is low —Rs 50-100 per dose—which restricts reinvestment in innovation. We need to rethink pricing for sustainable research and development (R&D). Look at the information technology or the automobile sectors in India—they make huge profits and reinvest in innovation. Pharma doesn’t have that liberty here, especially without access to risk capital like in the US firms.
Why not raise capital via Indian public markets?
We could, but it’s limited in scope. US markets offer more scale and risk appetite. Unless we plan a major acquisition or need significant capital, a listing may not be necessary. But broadly, policies need to support industry growth, like in IT or banking—where there’s no pricing cap.
Should government programmes subsidise pricing better?
Yes. Take this example: a shoe costs Rs 500 on the roadside. A vaccine protecting you for 10 years costs Rs 200–300. Yet people baulked at that price during the pandemic. Families spend thousands on lifestyle but hesitate on health. The healthcare industry needs the public and private sectors to work together to balance affordability with incentives for innovation.
What is driving you to venture into newer areas like Bollywood?
While we don’t expect significant revenue from films, it’s a strategic and passion-driven move. I’ve known Karan Johar and his team for years. Our goal is to tell powerful stories—like Kesari 2 on the Jallianwala Bagh massacre—and build distribution and intellectual property over time. It also opens new doors and networks, viewing India’s storytelling capabilities as a powerful global platform.
Bollywood has struggled recently. Is it going through a midlife crisis?
It’s more of a transitional phase. With OTT platforms and digital consumption rising, traditional footfalls have reduced. But the market is growing through mobile screens, especially in rural India. The country still has low screen penetration. As income levels rise, we’ll see exponential growth in viewers and revenues. Themes go in cycles—war, romance, action. However, predicting success is tricky—unlike pharma, where data gives you 80% certainty, films might offer 20-30% at best.
What’s your group’s five-to-ten-year outlook?
I think with the country growing in the direction that it is, there’s tremendous opportunity. That’s partly why we looked at real estate and financial services. Serum Institute of India will remain our primary focus. We want to focus on our non-banking financial company (NBFC). We sold our Magma Insurance Stake to Baba Ramdev-led Patanjali Ayurved and DS Group. We want to take all our capital and put it in our NBFC to grow that. We’re at Rs 35,000 crore in terms of assets under management. We’re going to grow at 30-40% a year. So that’s going to need capital. We’re going to probably go for a $1-billion capital raise at the end of this year via a qualified institutional placement or bring in a financial investor—all primary. Finance companies need a lot of capital to grow.
Real estate is a smaller play—about 10% of group activity. We’re cautious, partnering in key locations. Hotels, like the Ritz-Carlton Pune (built by group firm Poonawalla Real Estate & Hospitality), may expand modestly.
India is seen as a key alternative in global supply chains. What must the government do to seize this moment?
India is attractive due to its market size, rising incomes, and proactive governance. Two key things must continue: policy stability and geopolitical neutrality. Investors like long-term clarity on matters like taxes, land, and foreign investors. Frequent changes create uncertainty. Global investors don’t want instability. India must simply stay the course. The fundamentals are already strong.
Catch this exclusive interview on BTTV:
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