Japanese pharma company Daiichi Sankyo has announced that the Company has been unable to fulfill its obligation to build a scheme to supply vaccines for 40 million people in the time allotted under the Japanese Ministry of Health, Labour and Welfare’s cell culture vaccine production facility capacity building project, which is a part of the Ministry’s second initiative for H5NI vaccine development and production capacity building grant. After being selected for the project, Daiichi Sankyo had been engaged in preparations to build a scheme to supply vaccines from August 2011 to March 31, 2019.

Daiichi Sankyo and its Group company, Kitasato Daiichi Sankyo Vaccine Co., Ltd., which was dissolved after its functions were transferred to Daiichi Sankyo or its Group company, Daiichi Sankyo Biotech Co., Ltd. (hereafter, Daiichi Sankyo Biotech) on April 1, 2019, reported in April 2014 that they were unable to achieve the original goal of creating a scheme by March 31, 2014, to supply the vaccines for 40 million people in six months.

It was discovered in the development phase that higher doses are needed than expected when designing facilities, and they have addressed to increase the vaccination yield and improve the facilities. However, they have been unable to build a scheme capable of supplying vaccines for 40 million people in 6 months by March 31, 2019, the extended time limit for the initiative, and the scheme built is now capable of supplying vaccines for approximately 23 million people. 

In addition to returning a part of the grant, Daiichi Sankyo Biotech will pay a delinquency charge. Daiichi Sankyo believes that assumed delinquency charges have been recorded in the previous fiscal years, and have minor impact on Daiichi Sankyo consolidated profit and loss in the fiscal year ending March 31, 2020.