Bengaluru (Karnataka) [India], September 17 (ANI): Biocon Biologics Limited (BBL), a subsidiary of Biocon Ltd. and Serum Institute Life Sciences Private Limited (SILS) announced a strategic alliance on Thursday and BBL said it will offer around 15 per cent stake to SILS at a post-money valuation of about USD 4.9 billion.
Serum Institute Life Sciences Private Limited is a subsidiary of Serum Institute of India (SII).
As per the official release, under the terms of the agreement, BBL will offer approximately 15 per cent stake to SILS, at a post-money valuation of USD 4.9 billion, for which it will get committed access to 100 million doses of vaccines per annum for 15 years, primarily from SILS's upcoming vaccine facility in Pune with commercialization rights of the SILS 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 Biocon Biologics Limited," it said.
In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases like Dengue, HIV, etc.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics, 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."
The two companies will enter Service Level Agreements (SLAs) for manufacturing and distribution of the vaccines and antibodies.
"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," said Adar Poonawalla, CEO, Serum Institute of India.
Biocon Biologics will also establish, at its cost, a vaccine R&D division 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 capacities, for vaccine production under the strategic alliance.
"Biocon Biologics would issue shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt. Ltd. (CTPL), a wholly-owned subsidiary of SILS, on customary closing conditions and receipt of regulatory approvals," it added.
Both companies believe that this is an alliance that can make a significant impact on global healthcare through vaccines and biologics. (ANI)