Biocon Biologics, a subsidiary of , on Thursday said it will offer around 15 percent stake to Serum Institute Life Sciences at a post-money valuation of about $ 4.9 billion.
Serum Institute Life Sciences (SILS) is a subsidiary of Serum Institute of India (SII).
For offering the 15 percent stake, Biocon Biologics Ltd (BBL) will get committed access to 100 million doses of vaccines per annum for 15 years, primarily from SILS' upcoming vaccine facility in Pune with commercialisation rights of the SILS vaccine portfolio, including COVID-19 vaccines, for the global market, Biocon said in a regulatory filing.
"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 added.
In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases like dengue and HIV.
"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," Biocon and Biocon Biologics Executive Chairperson Kiran Mazumdar-Shaw said.
The two companies will enter Service Level Agreements 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," Serum Institute of India CEO Adar Poonawalla said.
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, the filing said.
"Biocon Biologics would issue shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt. Ltd, a wholly owned subsidiary of SILS, on customary closing conditions and receipt of regulatory approvals," it added.
Shares of Biocon Ltd closed at Rs 376.90 per scrip on BSE, up 5.47 percent from its previous close.
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Edited by Anju Narayanan
Link : https://yourstory.com/2021/09/biocon-biologics-offer-15-pc-stake-serum-institute-life-sciences
Author :- Press Trust of India ( )
September 17, 2021 at 10:23AM
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