Biocon to sell 15% stake in Biocon Biologics to Serum Institute of India
Biocon has agreed to divest a stake of around 15% in its subsidiary — Biocon Biologics Limited (BBL) to Serum Institute Life Sciences Private Limited (SILS) at an enterprise value of around $4.9 billion.
Serum Institute Life Sciences is a subsidiary of Serum Institute of India.
The deal gives Biocon Biologics access to 100 million doses of vaccines per annum for a period of 15 years. The vaccine doses will be mainly supplied from Serum Institute Life Sciences’ upcoming vaccine plant in Pune.
Biocon Biologics will have the commercialization rights of Serum Institute Life Sciences’ vaccine portfolio, including Covid-19 vaccines, for global markets.
Apart from vaccines, the alliance between the parties will develop antibodies that will target dengue, HIV, and various other infectious diseases.
Adar Poonawalla — CEO of Serum Institute of India 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.”
Biocon Biologics and Serum Institute Life Sciences will sign service level agreements (SLAs) for manufacturing and distributing the vaccines as well as the antibodies.
Kiran Mazumdar-Shaw — Executive Chairperson of 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.”
According to Biocon, vaccines are a complementary business fit to its subsidiary and offer a new dimension to its bid to boost global healthcare. Recently, Biocon Biologics entered into a manufacturing and commercialization partnership in certain emerging markets with US-based Adagio Therapeutics for ADG20, a Covid-19 antibody therapy candidate.