INDIA – Biocon Biologics Limited (BBL), a subsidiary of Biocon Ltd. and Serum Institute Life Sciences Private Limited (SILS), a subsidiary of Serum Institute of India (SII), have announced a strategic alliance where BBL said it will offer around 15% stake to SILS at a post-money valuation of about US$4.9 billion.
BBL will then get access to 100 million doses of vaccines per annum for 15 years from Serum Life Sciences’s (SILS) upcoming facility in Pune. The company will also receive commercialization rights for SILS’ vaccine portfolio for global markets.
The alliance will also develop antibodies in order to target diseases such as dengue, HIV among others. Both companies will enter Service Level Agreements (SLAs) for manufacturing and distribution of these 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,” said Kiran Mazumdar-Shaw, Executive Chairperson of Biocon and Biocon Biologics.
With reference to the deal, Serum Institute CEO Adar Poonawalla will get a board seat in Biocon Biologics, which is to generate a committed revenue stream from the next financial quarter.
BBL will issue shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt Ltd, wholly-owned subsidiary of SILS, depending on regulatory approval.
Serum chief Adar Poonawalla also said that both the companies will work to complement 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”.
Under the alliance, Biocon Biologics will also establish a vaccine R&D division to develop both vaccines and biologics for communicable diseases. It will also make its cell culture and sterile fill and finish capacities available for vaccine production, wherever possible.
Lincoln Parenteral and Lincoln Pharmaceuticals amalgamate
Meanwhile, the National Company Law Tribunal (NCLT), Ahmedabad Bench has approved the scheme of amalgamation of Lincoln Parenteral and Lincoln Pharmaceuticals.
The amalgamation is expected to bring about lot of synergies in terms of operations efficiency, enhance competitive strength, cost-effectiveness and productivity for the combined entity.
Lincoln Parenteral is subsidiary company of Lincoln Pharmaceuticals, engaged in the business of small parenteral injection products.
Would you like to get regular updates of such news articles? Subscribe to our HealthCare Africa News, email newsletters, which provide the latest news insights from Africa and the World’s health, pharma and biotech industry. SUBSCRIBE HERE