Representative Image (AFP)
The Board of Directors of Biocon Biologics Limited (BBL), a material subsidiary of Biocon Limited, on September 16 approved the merger of Covidshield Technologies Private Limited (CTLP) -- a wholly-owned subsidiary of Serum Institute Life Sciences Private Limited (SILS) -- into BBL.
Under the alliance, BBL will have access to 100 million doses of vaccines annually for 15 years and commercialisation rights of the SILS vaccine portfolio for global markets, BBL said in a regulatory filing. This will take place primarily from SILS’s upcoming vaccine facility in Pune with commercialisation rights of the SILS vaccine portfolio -- including COVID-19 vaccines -- for global markets.
ALSO READ: COVID-19 vaccine | Serum Institute's Cyrus Poonawalla says booster dose of Covishield is needed
SILS, according to the agreement, will receive approximately 15 percent stake in BBL at a post-money valuation of about $4.9 billion. BBL will generate a committed revenue stream and related margins, commencing the second half of FY23. The firm added that Adar Poonawalla will have a Board seat in Biocon Biologics Limited.
Among other details, BBL said that the strategic alliance will also develop antibodies targeting several infectious diseases like Dengue, HIV, etc. Also, both the firms -- BBL and SILS -- will enter Service Level Agreements (SLAs) for manufacturing and distribution of the vaccines and antibodies.
“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 & Biocon Biologics Executive Chairperson Kiran Mazumdar-Shaw said.
Apart from SLA, 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. Under the strategic alliance, BBL will make available its cell culture and sterile fill and finish capacities, for vaccine production.
"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 commented.
As per the alliance, Biocon Biologics would issue shares and receive the contemplated rights through a merger with CTPL on customary closing conditions and receipt of regulatory approvals.