Biocon Biologics forms 'strategic alliance' with SILS, to provide 15% stake

A subsidiary company of Biocon Limited, Biocon Biologics Limited (BBL) along with Serum Institute Life Sciences Private Limited (SILS) on Thursday announced its strategic alliance. As a part of the strategic alliance, BBL will provide around 15% stake to SILS with a post-money valuation of around 4.9 billion US dollars. In return, BBL will be given access to around 100 million doses of COVID-19 vaccine per annum for the upcoming 15 years. 

The decision was informed through an official release by the company which stated that Biocon Biologics Limited will be providing its 15% stake to SILS and will thus receive vaccine doses primarily from an upcoming vaccine facility of SILS in Pune.  Also, it will provide commercializing rights of the SILS vaccine portfolio including vaccines for global markets. 

As per the terms of the agreement, BBL will also generate a committed revenue stream and related margins commencing H2 in the financial year 2023. Meanwhile, SII CEO Adar Poonawalla will have a board seat in Biocon Biologics Limited, the statement read. 

It also provided further details regarding other initiatives to be taken under the recent strategic alliance. It will include developing antibodies for other infectious diseases including Dengue and HIV among others. Companies will enter into looking after the manufacturing and distribution of necessary vaccines and antibodies. 

Biocon-SILS strategic alliance

The decision of building a strategic alliance between both companies was taken on Thursday in the presence of the Executive Chairperson of Biocon and Biocon Biologics, Kiran Mazumdar Shaw, and CEO of Serum Institute of India, Adar Poonawalla. Speaking on the same, Majumdar said that the alliance will strengthen and build the resources of the company in terms of vaccines and biologics. Further, it will also have a global impact creating several unique and synergistic opportunities.

Meanwhile, Adar Poonawalla 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."

Meanwhile, Biocon Biologics will be establishing a vaccine R&D division for supporting this strategic alliance followed by the availability of its cell culture, sterile fill, and finish capacities for vaccine production. 

(With ANI inputs)

Image: Twitter/@iamanilshetty