Biocon Biologics announced its merger with Serum Institute of India
There will be no financial payment, but BBL will issue and allocate 15 percent equity shares to Serum on a fully diluted basis
Biocon Limited announced the merger of its material subsidiary Biocon Biologics Ltd (BBL) with Covidshield Technologies Pvt Ltd, a wholly-owned subsidiary of Serum Institute of India, on Monday (CTPL). At a meeting on January 3, the Biocon board of directors approved the transaction. The combination will require regulatory approval.
There will be no financial payment, but BBL will issue and allocate 15 percent equity shares to Serum on a fully diluted basis, subject to appropriate approvals and sanctions, according to the business.
BBL is a prominent player in the biosimilar space, with strong research and development, biomanufacturing, and commercialization capabilities. The company will be able to access the vaccination market as a result of the combination with CTPL.
For the next 15 years, the Biocon subsidiary will have guaranteed access to 100 million doses per year, mostly from Serum's new vaccine plant in Pune, which will have global commercialization rights for the Serum vaccine portfolio, including COVID-19 vaccines.
"Pursuant to the terms of the agreement, BBL will generate a committed revenue stream and related margins, commencing H2 FY23. Adar Poonawalla will have a Board seat in BBL. Under the terms of the agreement, BBL will offer 15 per cent stake to SILS," the company stated.
For the next 15 years, the Biocon subsidiary will have guaranteed access to 100 million doses per year, mostly from Serum's new vaccine plant in Pune, which will have global commercialization rights for the Serum vaccine portfolio, including COVID-19 vaccines.
