Harvard Case - Afrigen Biologics: Vaccines for the Global South
"Afrigen Biologics: Vaccines for the Global South" Harvard business case study is written by Debora L. Spar, Julia Comeau. It deals with the challenges in the field of Business & Government Relations. The case study is 23 page(s) long and it was first published on : Oct 19, 2022
At Fern Fort University, we recommend Afrigen Biologics prioritize a multi-pronged strategy to overcome the challenges of vaccine production and distribution for the Global South. This strategy should focus on building robust partnerships, leveraging technology, and advocating for policy changes to ensure equitable access to life-saving vaccines.
2. Background
Afrigen Biologics, a South African biotechnology company, aims to address the critical need for affordable and accessible vaccines in developing countries. The case study highlights the challenges faced by Afrigen, including limited resources, complex regulatory hurdles, and the dominance of multinational pharmaceutical companies in the global vaccine market. The main protagonists are Dr. Kelly Chibale, Afrigen's CEO, and the company's team of dedicated scientists and researchers.
3. Analysis of the Case Study
The case study presents a complex scenario involving various strategic, operational, and political factors. To analyze the situation, we can utilize the following frameworks:
a) Porter's Five Forces:
- Threat of New Entrants: The vaccine industry has high barriers to entry due to significant R&D costs, regulatory requirements, and the need for specialized manufacturing facilities. However, Afrigen's focus on technology transfer and partnerships could help overcome this barrier.
- Bargaining Power of Buyers: Governments and international organizations are the primary buyers of vaccines, often with limited options and a strong need for affordable solutions. This gives Afrigen a potential advantage.
- Bargaining Power of Suppliers: Key suppliers include raw material providers and technology partners. Afrigen needs to secure reliable and cost-effective suppliers to ensure production efficiency.
- Threat of Substitutes: While there are no direct substitutes for vaccines, alternative disease prevention methods like sanitation and hygiene programs can be considered substitutes. Afrigen must demonstrate the value proposition of its vaccines.
- Competitive Rivalry: The vaccine market is dominated by multinational pharmaceutical giants with vast resources and established distribution networks. Afrigen needs to develop a competitive strategy to differentiate itself and gain market share.
b) PESTLE Analysis:
- Political: Navigating complex international trade regulations, securing government funding, and advocating for policy changes to support vaccine access are crucial for Afrigen's success.
- Economic: The Global South faces economic challenges, including poverty and limited access to healthcare. Afrigen needs to ensure its vaccines are affordable and accessible to these populations.
- Social: The case highlights the social impact of vaccine inequity. Afrigen's mission aligns with addressing this issue and promoting global health equity.
- Technological: Afrigen's reliance on technology transfer and the development of innovative manufacturing processes are crucial for its success.
- Legal: Regulatory compliance, intellectual property rights, and navigating complex legal frameworks are essential for Afrigen's operations.
- Environmental: Sustainable manufacturing practices and environmental considerations are becoming increasingly important in the pharmaceutical industry. Afrigen needs to incorporate these aspects into its operations.
4. Recommendations
Afrigen should adopt the following recommendations:
a) Strategic Partnerships:
- Public-Private Partnerships: Form strategic partnerships with governments, international organizations, and other pharmaceutical companies to secure funding, technology transfer, and access to distribution networks.
- Non-Profit Collaborations: Collaborate with non-profit organizations working in the Global South to understand local needs, facilitate vaccine distribution, and build trust within communities.
- Technology Transfer Partnerships: Partner with established vaccine manufacturers to gain access to essential technologies and expertise, while also ensuring affordable pricing and technology transfer for local production.
b) Technological Innovation:
- Invest in R&D: Focus on developing innovative vaccine technologies, particularly those suited to the specific needs of the Global South, including heat-stable vaccines and novel delivery methods.
- Embrace Digital Technologies: Utilize digital platforms and data analytics to optimize vaccine production, distribution, and monitoring, ensuring efficient logistics and supply chain management.
- Open-Source Platform: Consider developing an open-source platform for vaccine research and development, fostering collaboration and knowledge sharing within the global scientific community.
c) Advocacy and Policy Change:
- Lobbying Strategies: Engage in active lobbying efforts to influence government policies and regulations that promote vaccine access and affordability for the Global South.
- International Advocacy: Collaborate with other stakeholders, including NGOs and international organizations, to advocate for changes in international trade agreements and intellectual property laws that hinder vaccine access.
- Public Awareness Campaigns: Launch public awareness campaigns to educate communities about the importance of vaccines and address vaccine hesitancy, promoting informed decision-making.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: Afrigen's core competency lies in its scientific expertise and commitment to providing affordable vaccines for the Global South. These recommendations align with this mission.
- External Customers and Internal Clients: Afrigen's external customers are governments, international organizations, and ultimately, the people in the Global South who need access to vaccines. These recommendations prioritize their needs.
- Competitors: Afrigen faces competition from multinational pharmaceutical companies with vast resources. The recommendations aim to differentiate Afrigen through its focus on technology transfer, partnerships, and advocacy for policy change.
- Attractiveness: The recommendations aim to enhance Afrigen's long-term sustainability by securing funding, expanding its reach, and building a strong reputation for innovation and social responsibility.
6. Conclusion
Afrigen Biologics has a unique opportunity to address the critical need for affordable and accessible vaccines in the Global South. By adopting a multi-pronged strategy focused on partnerships, technological innovation, and advocacy for policy change, Afrigen can overcome the challenges it faces and contribute significantly to improving global health equity.
7. Discussion
Alternative strategies include focusing solely on manufacturing vaccines for export, relying on existing international organizations for distribution, or adopting a purely commercial approach to vaccine development. However, these options present risks such as limited impact on the Global South, dependence on external actors, and potential for exploitation.
The recommendations presented are based on the assumption that Afrigen can secure sufficient funding, build strong partnerships, and navigate complex regulatory landscapes. These assumptions require careful consideration and risk mitigation strategies.
8. Next Steps
Afrigen should prioritize the following steps:
- Develop a detailed strategic plan: Outline specific goals, timelines, and resource allocation for implementing the recommendations.
- Establish a dedicated team: Assemble a team with expertise in partnerships, technology transfer, advocacy, and international relations.
- Secure funding: Explore various funding options, including government grants, private investment, and philanthropic contributions.
- Build strategic partnerships: Initiate discussions with potential partners, including governments, international organizations, and other pharmaceutical companies.
- Develop a communication strategy: Engage with stakeholders, including governments, communities, and the media, to build trust and support for Afrigen's mission.
By taking these steps, Afrigen can position itself as a leading force in the global vaccine landscape, contributing to a healthier and more equitable future for all.
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Case Description
The majority of vaccines used on the continent of Africa (99%) are produced offshore. This makes African nations reliant on the West for major health care needs, a problem which was exacerbated by the COVID-19 pandemic. Afrigen Biologics (in partnership with the WHO) is seeking to lessen this disparity by putting vaccine production in the hands of South Africans and other low- and middle-income countries. Afrigen Biologics is the first in a planned hub-and-spoke model which will extend throughout Africa and South America, allowing local labs to use shared knowledge to produce their own vaccines, particularly the COVID-19 vaccine. However, Afrigen and the WHO face a number of challenges to their proposed model. First, though Afrigen reports it has produced an original vaccine, the company did use publicly-available information about the Moderna vaccine as a starting point for their production. Long-term use of Moderna's "recipe" is not guaranteed, as it is unclear whether the company will enforce its intellectual property rights to prevent others from producing a similar vaccine. Second, Afrigen could begin facing local competition from Moderna and other large vaccine producers such as Pfizer and BioNTech. Pfizer and BioNTech have already begun sending modular lab "pods" to Africa to be able to produce its vaccine on the continent. Moderna also has proposed setting up vaccine centers in Africa. The presence of these larger companies within LMICs could threaten the development of the proposed hub-and-spoke model, thus continuing to limit the power of local labs to produce vaccines for their communities. Not to mention that demand for vaccines has recently been low in Africa, making it difficult for any new players to enter the market.
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