scorecardresearch
Biocon Biologics offers 15% stake to Serum Institute Life Sciences

Biocon Biologics offers 15% stake to Serum Institute Life Sciences

The alliance will also develop antibodies in order to target diseases such as dengue, HIV etc. Both companies will enter Service Level Agreements (SLAs) for manufacturing and distribution of these vaccines and antibodies

Biocon Biologics, Serum Institute Life Sciences enter strategic alliance Biocon Biologics, Serum Institute Life Sciences enter strategic alliance

Biocon Biologics, a subsidiary of Biocon, has offered a 15 per cent stake to Serum Institute Life Sciences Private Limited, a subsidiary of Serum Institute of India. Under this strategic alliance, Biocon Biologics (BBL) will offer the stake at a post-money valuation of $4.9 billion. It will then get access to 100 million doses of vaccines per annum for 15 years from Serum Life Sciences’s (SILS) upcoming facility in Pune. BBL will also receive commercialisation rights for SILS’ vaccine portfolio for global markets.

Serum Institute CEO Adar Poonawalla will also get a board seat in Biocon Biologics. Commencing on H2 FY23, BBL will generate a committed revenue stream, the company said in a statement.

The alliance will also develop antibodies in order to target diseases such as dengue, HIV etc. Both companies will enter Service Level Agreements (SLAs) for manufacturing and distribution of these vaccines and antibodies.

BBL will issue the shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt Ltd, wholly-owned subsidiary of SILS, depending on regulatory approval.

“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,” said Kiran Mazumdar-Shaw, Executive Chairperson of Biocon and Biocon Biologics.

Serum chief Adar Poonawalla also said that both the companies will work to complement 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”.

Under the alliance, Biocon Biologics will also establish a vaccine R&D division to develop both vaccines and biologics for communicable diseases. It will also make its cell culture and sterile fill and finish capacities available for vaccine production, wherever possible.

Also read: PM Modi, Mamata Banerjee, Adar Poonawalla make it to TIME's 100 Most Influential People list
Also read: Centre shares parameters with states, UTs to identify fake COVID-19 vaccines