The strategic alliance between two leading Indian biotech companies, Biocon Biologics Limited and Serum Institute of India (SII), will take India's vaccine and biologics development capabilities to the next level and work towards building a large scale businesses having global impact, said Kiran Mazumdar-Shaw, Chairman, Biocon Group and Adar Poonawalla, CEO, SII.
The two companies announced the merger of Covidshield Technologies Private Limited (CTLP) -- a wholly owned subsidiary of Serum Institute Life Sciences Private Limited (SILS) -- into BBL, in a deal valued about US$700 million. Under the alliance, BBL will have access to 100 million doses of vaccines annually for 15 years and commercialisation rights of the SILS vaccine portfolio for global markets. SILS will receive approximately a 15 per cent stake in BBL, based on a valuation of about $4.9 billion.
Speaking at a press conference today, they said the synergistic future oriented deal will help growth of both companies, as it will provide Biocon an opportunity to enter into the vaccine space, whereas Serum can leverage BBL's expertise in areas like monoclonal antibodies (mABs), m-RNA technologies and biosimilars.
The strategic alliance will also develop antibodies targeting several infectious diseases like dengue, HIV, etc. Both firms will enter Service Level Agreements (SLAs) for manufacturing and distribution of the vaccines and antibodies, evaluating development on a product-to-product basis.
Biocon has extensive marketing infrastructure in developed markets, an area Serum can explore to take its vaccines and other products to those markets through this alliance. At present most of Serum's products are supplied across the world through public health agencies like WHO-UNICEF and other such agencies.
Biocon Biologics will also set up a vaccine R&D division as part of the alliance and will make available its cell culture and sterile fill and finish capacities for vaccine production. Another area of co-operation will be to jointly ensure adequate indigenously sourced raw materials for vaccine production like bioreactor bags, vials, reusables etc., they said.
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