Five dead in Serum fire, new launches likely to be hit: CEO Poonawalla

Five people were killed on Thursday in a major fire that broke out in a Serum Institute of India factory, but the world’s largest vaccine maker said the incident would not affect the production of Covid-19 vaccine even as new launches may be hit.

Sparks from welding work being carried out in the under-installation factory in Pune had triggered the fire that destroyed some floors of the building, local authorities said. Maharashtra Health Minister Rajesh Tope said an investigation and a fire audit will be done.

Prime Minister Narendra Modi expressed anguish over the incident. “In this sad hour, my thoughts are with the families of those who lost their lives. I pray that those injured recover at the earliest,” he tweeted.

Serum Chief Executive Officer Adar Poonawalla offered condolences over the loss of lives. “I would like to reassure all governments & the public that there would be no loss of #Covishield production due to multiple production buildings that I had kept in reserve to deal with such contingencies at the Serum Institute of India,” Poonawalla tweeted, while thanking the Pune City Police and the fire department.

However, the incident could cause delays in launching new products and the firm expects revenue losses of over Rs 1,000 crore, Poonawalla was quoted as saying by CNBC-TV18.

In a statement, the company said: “Today is an extremely sorrowful day for all of us at Serum...We would like to extend our gratitude to everyone for their concerns and prayers in these distressing times.”

The firm announced a “compensation of Rs 25 lakh to each family, in addition to the mandated amount as per the norms”.

The incident took place around 2 pm in the company’s Manjri plant in the outskirts of Pune in the M SEZ3 building where Rotavirus vaccine is to be manufactured. “Inflammable insulation material was spread in the area which spread the fire,” Tope told reporters.

It took around three hours for the fire engines and water tankers to douse the fire. “Five bodies were found inside the premises... Real-time updates of casualties will be given,” Tope added.

Pune police commissioner Amitabh Gupta said: “There was no production happening in the building which caught fire. Preparatory work was underway to start manufacturing of vaccines. We will investigate once fire is brought under control and rescue work is completed.”

Ajit Pawar, Maharashtra’s deputy chief minister, said orders for a detailed inquiry into the incident had been issued. “The site manufacturing Covishield is secure,” he added.

Serum’s forte throughout the past half a century has been a combination of affordable vaccines and high volumes.

The firm produces more than 1.5 billion doses of vaccines which includes polio vaccine as well as diphtheria, tetanus, pertussis, Hib, BCG, r-Hepatitis B, measles, mumps and rubella vaccines. 

It is estimated that about 65 per cent of the children in the world receive at least one vaccine manufactured by Serum.

The institute will need to ramp up capacities for new products if the demand for a Covid-19 vaccine persists. Should demand for the vaccine dwindle, it will continue to use this enhanced capacity for other vaccines.