India's billionaire vaccine prince held the key to ending the pandemic. His plans went awry

Adar Poonawalla — the CEO of Serum Institute of India (SII), the world's largest vaccine maker — pumped hundreds of millions of dollars into his Indian manufacturing facility and committed to make millions of doses of a then-unproven coronavirus vaccine.

That vaccine, created by Oxford University and AstraZeneca (AZN), was still in clinical trials at the time. Nobody was sure how long a vaccine would take to develop, let alone whether it would even work.

"It was a calculated risk," Poonawalla told CNN Business. "But I didn't see the choice at that time, to be honest. I just felt I'd regret not committing one way or another."

To make his plan work, Poonawalla first had to raise nearly $1 billion. And the lives of hundreds of millions of the planet's most vulnerable people were at stake, since SII had pledged to provide poorer countries with jabs. If the gamble paid off, Poonawalla would save countless lives and be hailed as a hero during a period of historic turmoil. His fabulously rich family also would stand to grow even more wealthy by profiting from a significant deal.

As the world gave its money — and trust — to Poonawalla, things seemed to be going according to plan. The AstraZeneca vaccine received approval from UK regulators in December 2020, and Poonawalla became a household name in India.

But soon it became evident how badly Poonawalla had miscalculated the challenges that come with distributing millions of vaccines in the middle of a once-in-a-century pandemic.

His company's ability to inoculate even his own countrymen was thrown into doubt earlier this year as a devastating wave of coronavirus hit India. He's also failed to keep up with his commitment to deliver shots to other nations — the consequences of which have dented his reputation and shed light on the perils of such heavy reliance on one manufacturer.

From horse breeders to vaccine makers

It's easy to see why some of the biggest names in public health chose to rely on Poonawalla.

Few manufacturers can come close to the scale at which SII is able to produce vaccines. The company — which was founded by Poonawalla's father, Cyrus, 55 years ago — produces 1.5 billion vaccines each year for measles, rubella, tetanus and many other diseases. The jabs are mainly distributed to low-income countries worldwide, including India. Poonawalla estimates that just over 50% of the world's babies depend on vaccines made at SII.

The Poonawalla family charted an unusual path to becoming one of the world's preeminent vaccine makers. They have bred and raced thoroughbred horses since the 1940s, diversifying into pharmaceuticals, finance and real estate over the last half-century.

Cyrus Poonawalla is now India's seventh-richest man, worth more than $16 billion, according to the Bloomberg Billionaire Index. His son Adar took over as CEO in 2011 and has focused on expanding in international markets.

To prepare for the AstraZeneca vaccine production, Poonawalla said he spent $800 million on buying chemicals, glass vials and other raw materials, as well as ramping up manufacturing capacity at his plant in the Western Indian city of Pune.

More than $250 million came from the company's own funds. Another $300 million came from the Bill and Melinda Gates Foundation, which SII collaborated with to provide discounted or free doses to low-income countries. The rest was paid by other countries once SII started accepting orders for vaccines. In total, SII agreed to make up to 200 million vaccine doses for as many as 92 countries, as part of its deal with the Gates Foundation and Gavi, a vaccine alliance.

All of that happened, though, before regulators signed off on the AstraZeneca vaccine. Had trials for that vaccine been unsuccessful, SII would "just be making batches and then end up throwing them away," Poonawalla said.

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