Serum Institute Life Sciences to buy 15% stake in Biocon Biologics

BENGALURU:

Serum

Institute Life Sciences (SILS), a unit of Serum Institute of India, will buy a 15% stake in

Biocon Biologics

at a post-money valuation of about $5 billion, the two companies said.


That is 25% higher than what Goldman Sachs valued the company at when it invested $150 million last year.

In return, Biocon’s biologics business arm will get access to 100 million doses of vaccines annually for 15 years, mainly from Serum’s upcoming facility in Pune, with commercialisation rights of the SILS

vaccine

portfolio (including Covid-19 vaccines) 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 of Biocon & Biocon Biologics. TNN

Serum, Biocon to work on HIV, dengue meds

Serum is one of the world’s biggest producers of the Covishield vaccine.

In addition to vaccines, the two firms will develop antibodies targeting infectious diseases like dengue and HIV.

Biocon Biologics will establish a vaccine R&D division to support the strategic alliance in developing both vaccines and biologics for communicable diseases.

Adar Poonawalla, who will have a board seat in Biocon Biologics, 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’s biologics business is the largest contributor to the biopharmaceutical company’s topline, and the fastest growing. Over the past few years, many of its drugs received commercial approval in the mature markets of US and Europe.