Biocon Biologics Limited a subsidiary of Biocon Ltd., and Serum Institute Life Sciences Private Limited (SILS), a subsidiary of Serum Institute of India Pvt. Ltd. announced a strategic alliance under which Biocon Biologics Limited will receive access to 100 million doses of vaccines per annum for 15 years in return for an equity stake to Serum Institute Life Sciences Private Limited. Under the terms of the agreement, Biocon Biologics Limited will offer approximately 15 per cent stake to SILS, at a post-money valuation of ~$4.9 billion, for which it will get committed access to 100 million doses of vaccines per annum for 15 years, primarily from SILS’s upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio (including COVID-19 vaccines) for global markets. Post the deal company will generate a committed revenue stream and related margins, commencing H2, FY23. Adar Poonawalla will have a Board seat in Biocon Biologics Limited.
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. Vaccines are a complementary business fit to BBL and provides a new dimension to its effort in improving global healthcare. Most recently, BBL announced a manufacturing and commercialization 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.
On the alliance, Kiran Mazumdar-Shaw, Executive Chairperson, Biocon & 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, Serum Institute of India also commented saying that “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.