Shantha Biotech: A quest for affordable vaccination

Abstract

The case documents the innovation journey of Shantha Biotech and its founder Mr. Varaprasad Reddy in developing a highly successful recombinant vaccine for the first time in India. This hepatitis B vaccine, brand name Shanvac B, made India the fourth recombinant technology capable country in the world at that time in 1997, ushering in the era of affordable recombinant vaccines globally and launching the biotech revolution in India. Whereas skeptics maintained that India was 15-20 years behind the west in recombinant technology and such recombinant vaccine production was not possible in the country, Shantha Biotech achieved the impossible in a matter of four years. This four year innovation journey was realized by successfully overcoming severe resource constraints and achieving many firsts. Value driven action informed by prudent and practical approach, i.e, phronesis enabled early and continuous efforts. This led to emergent opportunities, drew in research collaborators, financial contributors, and even regulatory effort. The case enables an understanding of innovating in resource-scarce contexts, and producing affordable and cutting edge innovation. It enables appreciation for strategy as practice and phronesis or practical wisdom approach in managerial action to overcome resource constraints, and produce cutting edge innovation that can address the needs of both elite and non-elite. The teaching note draws on literatures from ‘innovation’, and ‘phronesis and strategy’- the two of the most recent developments in the field of strategy and management.