Biocon Biologics Ltd (BBL) and Serum Institute Life Sciences (SILS) have announced a strategic alliance in a bid to make a significant impact on global healthcare through vaccines and biologics.
Under the terms of agreement, BBL will offer 15 per cent stake to SILS at a post-money valuation of 4.9 billion dollars (about Rs 35,980 crore) for which it will get committed access to a 100 million doses of vaccines per annum for 15 years.
This will be primarily from SILS's upcoming vaccine facility in Pune with commercialisation rights of the SILS vaccine portfolio (including Covid-19 vaccines) for global markets.
BBL will generate a committed revenue stream and related margins starting H2 FY23. Adar Poonawalla will have a board seat in BBL.
In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases like dengue and HIV. The two companies will enter service level agreements for manufacturing and distribution of the vaccines and antibodies.
Kiran Mazumdar-Shaw, Executive Chairperson of Biocon and Biocon Biologics, said the alliance will complement the strengths and resources of 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," she said in a statement.
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."
Vaccines are a complementary business fit to BBL and provide a new dimension to its effort in improving global healthcare.
Most recently, BBL announced a manufacturing and commercialisation partnership in select emerging markets with Boston-based Adagio Therapeutics Inc for ADG20, a novel Covid-19 antibody therapy.
These collaborations support Biocon Biologics' intent of straddling on both infectious and non-communicable diseases in its quest to impact global health.
BBL 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.
Biocon Biologics will issue shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt Ltd (CTPL), a wholly owned subsidiary of SILS, on customary closing conditions and receipt of regulatory approvals.
( With inputs from ANI )
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