Pune: As part of its expansion of investment in one of Biocon Ltd’s units, Serum Institute of Life Sciences will give it access to 100 million vaccine doses annually. Biocon’s unit will also have the distribution right to Serum’s vaccine portfolio, the unit of Serum Institute of India, said on Tuesday.
Notably, the Serum Institute of India is one of the world’s largest vaccine makers, and its tie-up with the Indian firm will help in boosting India’s vaccination coverage.
As per the new alliance, the company would pump in $150 million after converting a loan to Biocon Pharma Limited into equity in Biocon Biologics Ltd.
The investment made is in addition to the $150 million that the Serum Institute of Life Sciences invested in Biocon Biologics in November. In September 2021, Biocon signed an agreement in September 2021 to offer about a 15 per cent stake in Biocon Biologics to the Serum Institute of Life Sciences.
The two companies have agreed to withdraw from their original equity structure which was formulated under their Strategic Alliance announced in Sep 2021.
For the said merger, Biocon has received approval from the National Company Law Tribunal (NCLT) in Karnataka. However, SILS was awaiting approval from the NCLT in Maharashtra. SILS will become the owner of the equity stake in Biocon.
“As per the new terms of the strategic alliance, Serum Life Sciences would make an additional equity investment of US$150 million through the conversion of the U$150 million loans provided to Biocon Pharma Limited, a Wholly Owned Subsidiary of Biocon Limited, into equity in BBL. This investment is in addition to the U$ 150 million that SILS had invested in Biocon Biologics in November 2022, resulting in SILS’s aggregate equity investment in BBL amounting to US$300 million,” said the company in its press release.
Shares of Biocon Ltd were trading 1.33% higher at ₹228.55 apiece in the intraday trading on BSE on Tuesday
The new merger will help Serum Institute of Life Sciences in investing in Biocon of around $300 million, whereas, BBL will be provided with additional product offerings for global markets.