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Biocon announces merger of its arm with Serum Institute subsidiary

Biocon announces merger of its arm with Serum Institute subsidiary

The company stated that there is no cash consideration involved but BBL will issue and allot 15 per cent equity shares to Serum on a fully diluted basis, subject to necessary approvals and sanctions.

Biocon, Serum subsidiaries to merge Biocon, Serum subsidiaries to merge

Biocon Limited on Monday announced the merger of its material subsidiary Biocon Biologics Ltd (BBL), with Serum Institute of India’s wholly-owned subsidiary Covidshield Technologies Pvt Ltd (CTPL). The merger was approved by the Biocon board at a meeting held on January 3. The merger will be subjected to requisite approval.

The company stated that there is no cash consideration involved but BBL will issue and allot 15 per cent equity shares to Serum on a fully diluted basis, subject to necessary approvals and sanctions.

BBL is one of the key players in the biosimilar space with a robust R&D, bio-manufacturing and commercialisation capabilities. The merger with CTPL will allow the company to enter the vaccine space also.

The Biocon subsidiary will get committed access to a 100 million doses per annum for 15 years, primarily from Serum’s upcoming vaccine facility in Pune with commercialisation rights of the Serum vaccine portfolio, including COVID-19 vaccines, for global markets.

“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 BBL. Under the terms of the agreement, BBL will offer 15 per cent stake to SILS,” the company stated.

CTPL is a wholly-owned subsidiary of Serum Institute Life Sciences Private Limited and has rights to commercialise its vaccines. Both CTPL and SILS are not listed entities.

BBL is not a listed entity either, however, it is a material subsidiary of Biocon, which is a listed entity.

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