Biocon Biologics, a subsidiary of Biocon, on Thursday offered approximately 15 percent stake to Serum Institute Life Sciences (SILS) for 100 million doses of vaccines in a strategic alliance.
SILS is a subsidiary of Pune-based Serum Institute of India (SII). The alliance will give SII CEO Adar Poonawalla a board seat in Biocon Biologics.
The stake, at a post-money valuation of approximately $4.9 billion, will provide Biocon Biologics with 100 million doses of vaccines per annum for 15 years, according to a company statement.
The vaccines will be primarily from SILS’s upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio (including Covid-19 vaccine) for global markets.
“This alliance will complement the strengths and resources of the two leading players in vaccines and biologics,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon & Biocon Biologics, in the statement.
With this alliance, Biocon Biologics will generate a committed revenue stream and related margins, commencing the second half of FY23.
“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,” Poonawalla said.
In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases like dengue and HIV, among others.
The two companies will enter service level agreements (SLAs) for the manufacturing and distribution of the vaccines and antibodies.
Recently, Biocon Biologics had also announced a manufacturing and commercialization partnership in select emerging markets with Boston based Adagio Therapeutics for ADG20, a novel Covid-19 antibody therapy.
The Bengaluru-based company also aims to 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, the statement said.