Local production of vaccines in South Africa is likely to get a boost following Biovac Institute’s new deal to manufacture BioNTech-Pfizer Covid-19 vaccine, Fitch Solutions suggests.
Biovac Institute, a bio-pharmaceutical company based in Cape Town in its partnership with Pfizer and BioNTech will help manufacture and distribute vaccine doses for the African Union. Production is set to begin towards the second half of 2022, with maximum output of around 100mn doses a year aimed by early 2023.
Fitch Solutions believe that this will significantly boost local production of vaccines in South Africa and further strengthen the local industry, which is already an outperformer in the region.
“Biovac Institute’s new deal to manufacture the BioNTech-Pfizer Covid-19 vaccine will boost local vaccine production and strengthen South Africa’s pharmaceutical market and exports.
“The pharmaceutical industry in the country will further benefit from the new mRNA tech transfer hub which will help boost innovation. While these developments will improve vaccine access across Sub-Saharan Africa, countries in the region will continue to face significant challenges for Covid-19 vaccine acquisition and rollout.”
Fitch Solutions
Pfizer is likely to benefit from this deal and Fitch Solutions note that in the company’s Q2 2021 financial results, Pfizer has increased its sales forecast for Covid-19 vaccines to USD33.5 billion in 2021, up from the previous forecast of US$26 billion.
Also, Fitch Solutions note that Biovac Institute has an existing partnership with Pfizer since 2015 to manufacture and distribute its Prevnar 13 pneumonia vaccine, but this is still awaiting regulatory approval.
Establishment of mRNA technology transfer hub in SA
Meanwhile, in line with local manufacturing of Covid-19 vaccines starting in 2022, the World Health Organization (WHO) has also announced plans for mRNA technology transfer hub to be established in South Africa.
This will be the first to be established on the continent and it will provide training on mRNA technologies for manufacturers from low- and middle-income countries and license them to move forward with local production of vaccines.
More so, Fitch Solutions believes this will facilitate growth in vaccine production in the short term as manufacturing capabilities increase, while boosting innovation in the long term.
For example, Fitch Solutions note that Biovac’s deal to manufacture the BioNTech-Pfizer Covid-19 vaccine is only for the final stages of manufacturing where the product is processed and put into vials, while the processes of mRNA drug substance production will remain in Europe at Pfizer and BioNTech’s facilities.
Meanwhile, this type of technology transfer would therefore be beneficial to local manufacturers and enable them to produce vaccines from scratch, Fitch Solutions notes.
Fitch Solutions highlight that although progress is being made to increase access of vaccines in South Africa and SSA as a whole, Covid-19 vaccine progress in the region will continue to lag behind developed nations.
Fitch Solutions maintain the view that a significant number of countries across the region are unlikely to vaccinate priority groups prior to December 2022. Limited stocks and supply bottlenecks continue to hinder vaccination.
According to Fitch Solutions, other hurdles in the vaccination drive include political instability, vaccine hesitancy, logistical hurdles and a lack of healthcare infrastructure.
READ ALSO: Current account deficit to remain stable in the medium-term
