Bengaluru: Biocon Biologics Ltd (BBL), the material subsidiary of Biocon Limited has merged with Serum Institute of India’s wholly-owned subsidiary Covidshield Technologies Pvt Ltd (CTPL). The merger was approved by the Biocon board at a meeting held on January 3 and will now be subjected to requisite approval.
BBL will issue and allot 15 per cent equity shares to Serum on a fully diluted basis, subject to necessary approvals and sanctions. There is no cash consideration involved other than this.
BBL is one of the key players in the biosimilar space with a robust R&D, bio-manufacturing and commercialisation capabilities. It will now enter the vaccine space following its merger with CTPL.
The Biocon subsidiary will get committed access to a 100 million doses per annum for 15 years, primarily from Serum’s upcoming vaccine facility in Pune with commercialisation rights of the Serum vaccine portfolio, including COVID-19 vaccines, for global markets.
“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 percent stake to SILS,” the company stated.
CTPL, a wholly-owned subsidiary of Serum Institute Life Sciences Private Limited has rights to commercialise its vaccines. Both CTPL and SILS are not listed entities, while Biocon is a listed entity but BBL is not.
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