Biocon Biologics to offer 15% stake to Serum Institute Life Sciences

Biocon Biologics Ltd (BBL), a subsidiary of Biocon Ltd, will offer about 15% stake to Serum Institute Life Sciences Pvt Ltd (SILS), a subsidiary of Serum Institute of India, at a post-money valuation of $4.9 billion. In return, BBL will get committed access to 100 million doses of vaccines annually for 15 years and commercialisation rights of SILS' vaccine portfolio - including Covid-19 vaccines - for global markets, primarily from SILS' upcoming vaccine facility in Pune. BBL will generate a committed revenue stream and related margins, starting from the second half of FY23. The company said Adar Poonawalla, CEO of Serum Institute of India (SII), will have a Board seat in BBL. BBL will issue shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt Ltd (CTPL), a wholly owned subsidiary of SILS. The two companies will enter Service Level Agreements (SLAs) for manufacturing and distribution of the vaccines and antibodies.