Botswana wants better deal in BVI vaccine sales
A high-powered Botswana Vaccine Institute (BVI) delegation departs for Beyonce, France, tomorrow (Saturday) to initiate negotiations for a new 10-year agreement as the current one concludes at the year's end.
Much like the recent Diamond Sales Agreement, the BVI delegation carries explicit cabinet instructions to secure a more favourable deal with partners Boehringer Ingelheim Animal Health (BIAH) concerning the proceeds from vaccine sales.
Under the new strategy, the BVI aims to expand its influence across the African continent, with aspirations to become a Pan-African organisation. As a publicly-owned company entirely controlled by the Botswana Government, the BVI is mandated to manufacture and distribute animal vaccines.
Initially focused on the Foot and Mouth Disease (FMD) vaccine at its inception, the company has since diversified its product portfolio from one to seven (7) products over the years. These vaccines are produced for both local and export markets thereby exposing the company to fluctuations in foreign currency exchange rates.
The BVI Board, consisting of nine members, seven appointed by the Minister of Agricultural Development and Food Security (subject to cabinet approval), and the remaining two directors appointed by BIAH, oversees the company's operations.
BVI manufactures vaccines under a ten-year renewable license agreement with MERIAL, a multinational animal health company that was acquired by Boehringer Ingelheim Animal Health (BIAH) in January 2017.
Two Board Member representatives of BIAH sit on the BVI Board of Directors to ensure the proper alignment of BVI's technical operations with the implementation of the license. In an exclusive interview with the Botswana Guardian, BVI Chief Executive Officer, Andrew Madeswi, confirmed the implementation of a strategy to turn the organisation into a profitable entity.
He emphasised the importance of negotiations with Boehringer Ingelheim Animal Health (BIAH), highlighting concerns about the sustainability of the current model, which does not allow BVI an opportunity to own the product.
The strategic goal is to create a Pan-African Company operating at a significant scale, with a dedicated team assembled for negotiations, indicating the government's seriousness and determination for substantial growth and change in how BVI operates.
As the team leaves to kick-start negotiations, Madeswi noted the government's investment of 40 percent to protect the BVI and secure a partner in the French government.
This partnership led to the establishment of a strategic alliance with the French company and an extended mandate to the region. The BVI has been bestowed the status of a reference laboratory for FMD, showcasing its expertise followed by the World Health Organisation.
However, the organisation recognises the changing agricultural landscape in Botswana, particularly the shift from cattle farming to various forms of large-scale farming.
BVI engaged KPMG in the recent past to conduct background assessments and facilitate the development of a medium-term Strategic Plan for BVI (spanning from January 1st, 2021, to December 31st, 2025).
Looking forward, the BVI acknowledges the need to reassess its relevance and impact. The strategic plan for 2021-2025 outlines two main goals: 'Four for Forty,' aimed at reducing reliance on FMD vaccines, and creating Africa's biggest antigen bank to ensure readily available vaccines during disease outbreaks.
This strategy aims for financial sustainability, considering financial losses in recent years and the need for diversification beyond FMD products. The BVI plans to have at least 40 percent of its revenue coming from Four products called ‘’Four for Forty ‘’ that would be mitigating the concentration of production in FMD.
The strategy outlines key thematic areas, goals, and desired outcomes to focus on unlocking shareholder value, emphasising initiatives needed for success and also recognises the need to review BVI’s existing agreements with various partners to recommend ways to derive increased value from such relationships.
The roadmap also considers the establishment and support of research and development (R&D) to address emerging needs, while strengthening BVI's research and innovation culture as a leading pharmaceutical player in the region, contributing to the country's economy.
Madeswi explains that the second goal of creating Africa's biggest antigen bank is to respond more effectively to disease outbreaks and emergencies by reducing vaccine delivery lead time through a well-established formulation readily available for use in the region.
The organisation is committed to achieving financial sustainability and growth, building on past successes and aiming for a record profit similar to previous achievements.