India’s leading pharmaceutical company Bicon Ltd has entered into partnership with Serum Institute of India, the world’s largest maker of coronavirus vaccines to gain access to coronavirus vaccine doses.
Biocon Biologics Ltd, a subsidiary of Biocon Ltd, will offer close to a 15% stake in its business to the Serum Institute in return for 100 million doses of COVID-19 vaccines annually over a 15-year period, the company said in its exchange filing and accompanying press release. The deal values Bicon Biologics at about $4.9bn.
Biocon Biologics will also gain access to Serum Institute’s forthcoming facility in Pune in Western India along with global commercialisation rights for Serum Institute’s COVID-19 vaccine portfolio. The company will generate a committed revenue stream and margins beginning from September 2022.
“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 chair of Biocon and Biocon Biologics.
Serum Institute’s billionaire chairman Adar Poonawalla will sit on the board of Biocon Biologics under the agreement.
Together, the two companies will also develop antibodies for infectious diseases, including Dengue and HIV. They will additionally enter Service Level Agreements for manufacturing and distribution of the vaccines and antibodies.
Addressing vaccine inequality
“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,” said Poonawalla, who also doubles as Serum Institute of India’s chief executive officer.
For its part, Biocon Biologics will also establish a research facility dedicated to meet the requirements of the agreement and offer its cell culture and sterile fill and finish capacities.
At 13:00 IST (UTC +5.5), shares of Biocon Ltd were trading down 0.3% on the day at INR373.7 ($5.08) on the National Stock Exchange.