Merck vaccine move signals shift in Big Pharma

We have come a long way since the days when vaccines were considered a business of marginal interest for multinational companies.

Today, the field is seeing a rush of interest from pharma multinationals. American pharma major Merck, for one, has joined hands with UK-based Wellcome Trust to set up a new company, Hilleman Laboratories, dedicated to developing and commercialising vaccines for low-income countries.

This also indicates a shift in the way western companies look at the developing nations.
Earlier, these companies only focused on drugs ailing the western populations, such as cardiac products or oncology.

Today, however, an increasing number of them are researching on diseases such as multiple drug resistant tuberculosis, leishmaniasis, malaria and dengue.

Among others, Genzyme has turned to Medicines for Malaria Venture for developing anti-malarials; Novartis has been working on a range of tropical diseases like dengue from its Singapore-based Novartis Institute of Tropical Diseases; and GSK has advocated patent pool for development of drugs for neglected diseases.

Nearer home, Geneva-based Drug for Neglected Diseases Initiative has collaborated with the Tata-controlled Advinus Therapeutics for new leads in kala-azar.

For developing new vaccines, the deal between Merck and Wellcome Trust has the potential to benchmark the long-starved research in preventive vaccines. The new venture will focus on vaccines that have not been already researched by companies in existing domains, such as vaccines to combat group A streptococci or vaccines that do not require refrigeration.

Set up in 2000, the Global Access for Vaccines and Immunization is one such tremendously successful project that works in the far-flung countries while trying to optimise underused vaccines.

The long-term commitment of Merck and Wellcome Trust is established as they together plan to put over Rs 500 crore in the new venture, enough to last seven years.

Hilleman Laboratories starts with an optimistic note about future funding requirements. Though tedious research modules will gobble up millions of dollars, the lab will operate out of India and expects to run its operations on a combination of core funding from the founders, third-party grants, and other revenue streams.

“Over time, it is envisaged it will receive compensation for its innovations where these are leveraged in higher income settings. The aim will be to attract multiple sources of income to support the mission of the organisation so that its impact can be sustained as it builds on its early success,” the company stated.

With a corporate twist to the immensely useful social cause, the Merck-Wellcome Trust group seeks to take the awareness and used of vaccines to the next level.

“Linking the ingenuity of academic research with the know-how of industry is vital if we are to produce a new generation of vaccines to reduce the burden of infectious diseases in low income countries,” Mark Walport, chief executive, Wellcome Turst stated.

For Indian vaccine manufacturers, which cite apathy as the chief cause for limited progress in developing preventive vaccines, this could be a good opportunity to align with global heavyweights. Deploying funds for tangible projects has never been seen as a problem for major companies and working together from early stages can help Indian companies reap the benefits faster.

Hilleman Laboratories is also seeking out companies with scaleable projects. According to the release, it will work to advance projects to ‘proof of concept’ stage by providing key expertise in product development and optimisation that is typically available only within large vaccine companies.

It will also work with vaccine manufacturers to ensure production can be scaled up and that the vaccines are affordable. Through this model, it will help deliver vaccines to registrations that are specifically designed to meet the needs and practical realities in developing countries.

Top-notch Indian vaccine manufacturers such as Serum Institute, Panacea and Bharat Biotec can synergise their goals with the Merck joint venture and see how best their own initiatives in existing areas like combination vaccines can be taken forward.

The aim to locate the office of the joint venture may have been done after scores of feasibility studies indicated a clear India-advantage.

It is now for Indian companies to see how best they can take forward this initiative from the MNC. The perennial crib about MNC disinterest regarding diseases of developing nations will not work anymore.