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As part of the agreement, Biocon Biologics will offer approximately 15% stake to Serum Institute Life Sciences, at a post-money valuation of $4.9 billion. Biocon Biologics will get an access to 100 million doses of vaccines per annum for 15 years, primarily from Serum Institute's upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio (including COVID-19 vaccines) for global markets.
In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases like Dengue, HIV, etc. The two companies will enter Service Level Agreements (SLAs) for manufacturing and distribution of the vaccines and antibodies.
Pursuant to the terms of the agreement, Biocon Biologics will generate a committed revenue stream and related margins, commencing H2, FY23. Adar Poonawalla will also have a board seat in Biocon Biologics. Biocon Biologics would issue shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt. Ltd, a wholly owned subsidiary of Serum Institute Life Sciences, on customary closing conditions and receipt of regulatory approvals.
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.”
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 also announced that it will establish, at its cost, a vaccine R&D division to support the strategic alliance in developing both vaccines and biologics for communicable diseases. Additionally, the company will make available its cell culture and sterile fill and finish capacities, for vaccine production under the strategic alliance.
Serum Institute Life Sciences (SILS) is a subsidiary of Serum Institute of India (SII). Serum Institute of India, the world's largest manufacturer of vaccines, is an Indian biotechnology and biopharmaceuticals company.
Biocon Biologics, a subsidiary of Biocon, is a fully integrated global biosimilars organization. It is leveraging cutting-edge science, innovative tech platforms and advanced research & development capabilities to lower treatment costs while improving healthcare outcomes.
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