Indian vaccine innovation: Shantha Biotechnics

An Engineer with a Cause
Dr. K.I. Varaprasad Reddy reported that he discovered the extent of the issue when he attended a WHO conference in 1992, and learned that what was needed was an inexpensive generic biotech vaccine. He felt that the vaccine would have to be produced in-country rather than imported. The Indian biotech industry at that time was focused on generic pharmaceutical products, and was not yet involved in innovative biotechnology [4]. Recombinant technology did not exist within the country [6]. When Dr. Varaprasad approached a Western firm for a technology transfer he was told that, essentially, "India cannot afford such high technology vaccines. India does not require vaccines. And even if you can afford to buy the technology, your scientists cannot understand recombinant technology in the least." Despite being trained as an electrical engineer with no biotech R&D experience and just an MBA, Dr. Varaprasad was motivated by this challenge and felt that the science was something he could delegate to an experienced team of scientists.

Building the Dream
With an idea in mind and strong convictions, Dr. Varaprasad began to seek capital for this new venture. Although he visited every major Indian bank, they were unwilling to fund early-stage start-ups with no revenue, and had little understanding of the biotech industry at large. But Varaprasad persisted, and raised $1.2 M USD by selling his father's properties, and seeking investment from family and friends. As Dr. Varaprasad himself had no experience in biological research, he contacted hundreds of expatriate Indian scientists, two of whom he persuaded to join him. Shantha was founded in 1993 with few resources, but much hope. As one of the scientists, M.K. Sudhir, stated: "If you ask me if I would go through it again, I would have to think twice. At that point, it was a missionary zeal. There was no precursor for this kind of product in India."

Shantha incubated inside Osmania University at Hyderabad, but the company was relocated because of perceived institutional politics. By 1995, Shantha had exhausted its initial investment and was on the verge of bankruptcy. Dr. Varaprasad fortunately found an unexpected ally in the Foreign Minister of the Sultanate of Oman, H. E. Yusuf Bin Alawi Abdullah, who wanted an affordable vaccine for his own citizenry. Oman injected $1.2 million USD in equity for a 50% stake in the firm, which allowed Shantha to move into a new facility at the Centre for Cellular and Molecular Biology in Hyderabad.