September 25, 2021
Biocon Biologics Limited (BBL), a subsidiary of Biocon Ltd,. and Serum Institute Life Sciences Private Limited (SILS), a subsidiary of Serum Institute of India Pvt. Ltd,. announced a strategic alliance under which BBL will receive access to 100 million doses of vaccines per annum for 15 years in return for an equity stake to SILS.
Under the terms of the agreement, BBL will offer approximately 15 per cent stake to SILS, at a post-money valuation of $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 commercialisation rights of the SILS vaccine portfolio (including Covid-19 vaccines) for global markets, a press statement from Biocon Biologics said.
According 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.
In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases like Dengue, HIV, etc.
The two companies will enter Service Level Agreements (SLAs) to manufacture and distribute the vaccines and antibodies. Vaccines are a complementary business fit to BBL and provide a new dimension to improving global healthcare.