Not just that the government had spent extra funds for buying vaccines from the private companies after suspending the manufacturing licences of the three public sector vaccine units, but it also incurred a combined loss of about Rs.45 crore by way of revenue erosion, according to the latest figures available.

The State-run Pasteur Institute of India, Coonoor incurred a loss of Rs.16.4 crore during the two years of 2008-09 and 2009-10, compared to the revenues generated in the previous year. The revenue loss was Rs.8.2 crore each during these two years, according to the data with the health ministry.

The Central Research Institute, Kasauli had lost Rs.2.92 crore during 2008-09 and Rs.5.73 crore in the next financial year compared to the revenues in the previous year. The BCG Vaccine Laboratory, Chennai could have gained another Rs.10.61 crore each during these two years, according to available information.

The Centre had suspended manufacturing licenses of these three vaccine manufacturing units on January 15, 2008 on the grounds that the units were not in compliance with GMP norms. However, after the public pressure and lots of criticism, the government set up a committee to study the ways out. The suspensions were revoked on February 26, 2010, based on the recommendations of this panel and gave time to the units to become GMP compliant.

Interestingly, the loss met by these units were over and above the extra expenditure the Centre had to face by buying vaccines at higher costs from the private companies. The prices of vaccines had doubled during these two years, though the authorities claimed that it could still negotiate and secure them at comparatively cheaper rates.

With the public sector units were supplying vaccines at no-profit-no-loss criteria, the prices of vaccines – BCG, DPT, DT and TT – have been stable from 2004-05 to 2007-08. But in the year 2008-09, and especially in 2009-10, the prices of vaccines have nearly doubled with the price of BCG rising from Rs.13.00 per vial of 10 doses in 2007-08 to Rs.17.50 in 2008-09 and to Rs.27.85 in 2009-10. Similarly, DPT vaccine was earlier procured from the other public/private sector units at the rate of Rs.13.50 per vial of 10 doses to Rs.13.40 from Indian Immunological Limited (IIL), Rs.14.37 from Serum Institute of India (SII), Pune and Rs.16.88 from Biological E (BE) Ltd, Hyderabad during 2008-09.

While, in 2009-10 the price per vial of 10 doses for DPT rose to Rs.23.59 from IIL and BE, and Rs.23.49 from Shanta. Similarly, the price of the DT vaccine rose from Rs.9.14 per vial of 10 doses in 2007-08 to Rs.12.00 (IIL) and Rs.13.85 (BE) for the quantities procured for the year 2008-09. For TT vaccine, the price per vial of 10 doses was Rs.6.20 in 2007-08 which rose to Rs.8.40 (IIL) and Rs.11.85 (BE) for the quantities procured for the year 2008-09 which again shot up to Rs.17.69 for the quantities procured from IIL, BE and SII for the year 2009-10, according to sources.