Biocon Biologics will offer 15% stake to Serum Institute Life Sciences at a valuation of US$4.9 billion
Biocon’s subsidiary Biocon Biologics on Thursday said it will offer a nearly 15 per cent stake to Serum Institute Life Sciences at a post-money valuation of approximately $4.9 billion. Serum Institute Life Sciences (SILS) is a subsidiary of Serum Institute of India (SII).
For the 15 percent stake offer, Biocon Biologics Limited (BBL) will receive access to 100 million doses of vaccines per year for 15 years, primarily from SILS’s upcoming vaccine facility in Pune, which will have commercialization rights of the SILS vaccine portfolio. Including COVID. -19 vaccines, for the global market, Biocon said in a regulatory filing.
“As per the terms of the agreement, BBL will generate a committed revenue stream and associated margins, starting from H2, FY23. Adar Poonawalla will have a board seat in Biocon Biologics Ltd,” it added.
In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases such as dengue and HIV.
Kiran Mazumdar, Executive President, Biocon and Biocon Biologics, said, “This alliance will complement the strengths and resources of two major players in vaccines and biologics. Our shared vision of building large-scale businesses with global impact makes it a unique and synergistic value creation. creates opportunities.” Shaw said.
Both the companies will enter into a service level agreement for the manufacture and distribution of vaccines and antibodies.
Adar Poonawalla, CEO, Serum Institute of India, said, “We look forward to complementing each other’s capabilities and capabilities in vaccines and biologics with the aim of addressing unequal access in both emerging and developed markets for life-saving vaccines and biologics. Huh.”
Biocon Biologics will also establish a Vaccine R&D Division at its own cost to support the strategic alliance in developing both vaccines and biologics for communicable diseases.
Additionally, wherever possible, it will make available its cell culture and sterile fill and finish capabilities for vaccine production as part of a strategic alliance, the filing said.
It said, “Biocon Biologics will issue the shares and acquire the rights under consideration to obtain customary closing conditions and regulatory approvals through a merger with CovidShield Technologies Pvt Ltd, a wholly owned subsidiary of SILS.”
Shares of Biocon Ltd closed at Rs 376.90 per share on BSE, up 5.47 per cent from the previous close.
.