Indian biotech firm Panacea Biotec Ltd on Monday began production of Russia's Sputnik V vaccine against COVID-19, said the Russian Direct Investment Fund (RDIF), which markets the shot internationally.

The first batch of doses made by the Indian company will be shipped to Gamaleya, the Moscow institute which developed the vaccine, for quality controls, RDIF said in a statement.

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Full-scale production is expected to begin this summer, RDIF added. Panacea Biotec plans to produce 100 million doses of Sputnik V annually, RDIF had said in April.

Sputnik V  has already been soft launched in India, with the first dose administered in Hyderabad on May 14 by Dr Reddy’s Laboratories which was the first Indian company to tie up with RDIF.

The vaccine is priced at ₹995.40 per shot in the market, but the price is expected to come down once local production starts in August.

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Imports of the first consignment carrying 150,000 doses of the vaccine had landed in Hyderabad on May 1. Bulk imports of Sputnik V are expected over the coming days. Production of the vaccine locally is likely to start by Dr Reddy’s Labs in August,according to India's ambassador in Moscow. Earlier Dr Reddy's had indicated that it would start manufacturing the vaccine in July.  

Sputnik V is the third vaccine to be given Emergency Use Authorisation in India after Oxford University -AstraZeneca developed Covishield and Bharat Biotech manufactured Covaxin.

The Russian Direct Investment Fund (RDIF) has signed a deal to produce 750 million doses  a year  of Sputnik V in India. Apart from Dr Reddy’s Laboratories there are four other Indian pharmaceutical companies that will also manufacture the vaccine.

The Sputnik V Covid-19 vaccine was first approved in Russia on August 11 last year. With an efficacy of 91.6%, as published in the Lancet Medical Journal, the vaccine has been cleared and approved for mass use in more than 50 countries.