Under the agreement, BBL will get access to 100 million doses of vaccines per annum for 15 years, mostly from SILS’s future vaccine facility in Pune
Biocon Biologics Limited (BBL), a subsidiary of Biocon, has agreed to offer approximately 15% stake to Serum Institute Life Sciences Private Limited (SILS), a subsidiary of Serum Institute of India, at a post-money valuation of about $4.9bn.
Under the agreement, BBL will get access to 100 million doses of vaccines per annum for 15 years, mostly from SILS’s future vaccine facility in Pune.
Also, the biosimilars developer will obtain commercialisation rights of the SILS vaccine portfolio, including Covid-19 vaccines, for global markets.
As part of the transaction, Serum Institute of India chief executive officer Adar Poonawalla will become a member of BBL Board of Directors.
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.”
In addition to vaccines, the collaboration is also designed to develop antibodies targeting various contagious diseases.
The two companies are anticipated to sign Service Level Agreements (SLAs) for manufacturing and distribution of the vaccines and antibodies.
BBL said that it will issue shares and receive the rights through a merger with Covidshield Technologies (CTPL), a subsidiary of SILS, subject to customary closing conditions.
The company is expected to generate a committed revenue stream and related margins starting from the second half of the financial year 2023.
BBL has agreed to establish a vaccine R&D division at its own cost to support the partnership in developing both vaccines and biologics for communicable diseases.
Also, the company will offer its cell culture and sterile fill and finish capacities wherever possible, to support vaccine production under the collaboration.
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.”