Biocon Biologics, a subsidiary of Biocon will offer around 15 per cent stake to Serum Institute Life Sciences at a post-money valuation of about USD 4.9 billion, announced the company on Thursday. Serum Institute Life Sciences (SILS) is a subsidiary of Serum Institute of India (SII).
Biocon said in a regulatory filing, for providing the 15 per cent stake, Biocon Biologics Ltd (BBL) will get committed access to 100 million doses of vaccines per annum for 15 years, primarily from SILS’ upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio, including COVID-19 vaccines, for the global market.
“Pursuant to the terms of the agreement, BBL will generate a committed revenue stream and related margins, commencing H2, FY23. Adar Poonawalla will have a Board seat in Biocon Biologics Limited,” it added.
Along with the vaccines the strategic alliance will also develop antibodies targeting several infectious diseases like dengue and HIV.
Biocon and Biocon Biologics Executive Chairperson Kiran Mazumdar-Shaw said, “This alliance will complement the strengths and resources of the two leading players in vaccines and biologics. Our shared vision of building large scale businesses having global impact makes it a unique and synergistic value creation opportunity.”
For manufacturing and distribution of the vaccines and antibodies, the two companies will enter Service Level Agreements.
The CEO of Serum Institute of India Adar Poonawalla said, “We look forward to complementing each other’s capabilities and capacities in vaccines and biologics, with the objective of addressing inequitable access both in emerging and developed markets for life-saving vaccines and biologics.”
A vaccine R&D division to support the strategic alliance in developing both vaccines and biologics for communicable diseases will also be established by Biocon Biologics at its cost.
Moreover, wherever possible, it will make available its cell culture and disinfected fill and finish capacities for vaccine production under the strategic alliance, said the filing.
“Biocon Biologics would issue shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt. Ltd, a wholly-owned subsidiary of SILS, on customary closing conditions and receipt of regulatory approvals,” it added.
Shares of Biocon Ltd closed at Rs 376.90 per scrip on BSE, up 5.47 per cent from their previous close