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news.Biocon Biologics Limited (BBL), a subsidiary of Biocon, and Serum Institute Life Sciences Private Limited (SILS), a subsidiary of Serum Institute of India Pvt. Ltd., has announced a strategic alliance.
Image: Besides the Covid-19 vaccines, the strategic alliance will develop antibodies targeting several infectious diseases such as dengue, HIV, etc. Credit: Michal Jarmoluk from Pixabay
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Biocon Biologics Limited (BBL), a subsidiary of Biocon, and Serum Institute Life Sciences Private Limited (SILS), a subsidiary of Serum Institute of India Pvt. Ltd., has announced a strategic alliance.
As per the terms of the agreement, BBL will provide approximately 15% stake to SILS, at a post-money valuation of around $4.9bn. It will in turn receive committed access to a 100 million doses of vaccines annually 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.
Pursuant to the deal terms, BBL will produce a committed revenue stream and related margins, beginning second half of fiscal year 2023.
Besides the vaccines, the strategic alliance will develop antibodies targeting several infectious diseases such as dengue, HIV, etc.
The two firms will enter Service Level Agreements (SLAs) for production and distribution of the vaccines and antibodies.
Biocon & Biocon Biologics executive chairperson Kiran Mazumdar-Shaw 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.”
Serum Institute of India CEO Adar Poonawalla said: “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.”
Poonawalla will also have a board seat in Biocon Biologics Limited.
Biocon Biologics will also set up, at its cost, a vaccine R&D division to support the strategic alliance in developing both vaccines and biologics for communicable diseases. Furthermore, under the strategic alliance, wherever possible, it will make available its cell culture and sterile fill and finish capacities, for vaccine production.
