Dr Varaprasad Reddy, Chairman Emeritus of Shantha Biotech, a pioneering biopharma company, is the man who sparked the biotechnology revolution in India. His outrage over the exorbitant cost of Hepatitis B vaccines fueled his mission to make these life-saving doses affordable. In 1991, the vaccine’s price tag of Rs 750 per dose, and Rs 2,250 for a full course, was out of reach for most Indians, while the West had largely eradicated the disease. Determined to change this, Varaprasad, a non-medical professional with a background in batteries and electronics, founded Shantha Biotechnics in 1993. Through innovative processes, he slashed the vaccine’s price from Rs 750 to Rs 50 per dose, making a full course affordable at just Rs 150.
This groundbreaking achievement not only transformed India’s healthcare landscape but also sent shockwaves globally, causing prices to plummet to as low as Rs 15 per dose.
The impact was staggering: India’s annual vaccinations soared from 80,000 in 1991 to over 100 million in 2008. Varaprasad’s courageous endeavour also humbled a powerful multinational corporation and redefined the global Hepatitis B vaccine market. His legacy serves as a testament to the power of innovation and determination in making healthcare accessible to all. “I wanted to do something different, something that would make a difference in people’s lives,” he said in an interview to Blitz India. The following are the excerpts:
Blitz India: Your message to young Entrepreneurs? KI Varaprasad Reddy: After our education is over, most of us want to take care of our family by picking up a job. But I wanted to do something different. Be shameless and stand before the Government corridors, keep on knocking doors of the Government and be strong in follow-up. A lot of perseverance is needed; otherwise, things will not move.
BI: Your own experience on Innovation and Investment? KIVR: India needs to wake up to the reality of its innovation crisis. We must invest in R&D, protect local industry, and promote entrepreneurship. Our future depends on it. India’s R&D budget is meager compared to global standards. This lack of investment hinders our ability to innovate and export.
BI: What’s your take on Government support and policy? KIVR: The Government’s priorities are skewed, with defence receiving Rs 6.21 lakh crore, education Rs 73,000 crore, and health a mere Rs 90,000 cr. Also, the health expenditure is 1.9 per cent of the GDP. Anti-dumping laws fail to protect local industry, allowing foreign companies to undercut domestic players. India’s lack of innovation and investment in research and development threatens the country’s economic growth and global competitiveness.
BI: Please share some highlights of your experience KIVR: As Chairman Emeritus of Shantha Biotech, I’ve seen the importance of indigenous innovation. We were the only company to receive two tech awards in a two-year span for our work on hepatitis B and cancer drugs. However, I refused to accept the second award due to the Government’s inaction on implementing our immunisation schedule. It’s alarming that foreign companies are buying out Indian ones, undermining our ability to innovate and prosper.
When I started Shantha Biotech, I faced numerous challenges, including bribes demanded by officials and unfair duty concessions. Our anti-dumping laws are ineffective, allowing foreign companies to undercut local industry. I learned this firsthand when Maneka Gandhi, an animal rights activist, intervened in our animal testing for drug safety protocols. We lost a year, but I stood firm, explaining that animal testing is essential for human safety.
We’re not killing animals for pleasure; it’s for the greater good. I sued Maneka Gandhi and won a 100-crore case, not for the money, but to assert that scientific processes shouldn’t be interfered with. The Directorate General of Foreign Trade (DGFT) hinders export growth. I experienced this firsthand when my application was delayed for six months and eventually canceled. The system is plagued by corruption and inefficiency.
To young entrepreneurs, I urge you: don’t give up. Fight for your ideas, and don’t be swayed by setbacks. India needs innovative thinkers like you to drive growth and prosperity.
