Adar Poonawalla, Chief Executive Officer at Serum Institute of India, on Monday asked the government to think about overhauling vaccine pricing policy to enable innovation and help grow the industry, yet also work towards that balance so as to ensure the required profit to reinvest in research and technology. He said this during his intervention at the ongoing session of the World Economic Forum (WEF) 2025 in Davos.

Key Highlights:

1.Rationalize Pricing Controls:

• He asked the government to revoke the overall controls on vaccine prices. He said moderate price hikes could help the vaccines earn sustainable profits.

• There is a great discrepancy as vaccine companies are far from reaching the profits of more than $1 billion per year. The difference is with other industries.

  2.  Impact on Innovation:

• Poonawalla said low profitability hampers the independent development of vaccines.

• He mentioned the malaria vaccine, which was developed in five to six years because of funding issues, and other vaccines like dengue and monkeypox, which needed partnerships.

  3.  Affordability and Growth Balance:

• While demanding a cut in price caps, Poonawalla insisted that affordability should not be compromised for the public.

• He said that vaccines priced at ₹100 or ₹200, which give protection for up to a decade, can be hiked by a modest amount.

Statements from Leaders or Officials:
Adar Poonawalla stated:
“We’re not talking about removing price controls because we want the public at large to access affordable healthcare. But today, we're selling vaccines at less than the price of roadside shoes. This needs to be re-looked at to generate enough profits for reinvestment and innovation.”Poonawalla's statements underscore the need for balancing affordability with growth and innovation that the industry requires. Relaxing price controls would open the doors for faster development of life-saving vaccines and strengthen India's position as a global vaccine leader.