Serum Institute to invest $300 mn in Biocon's unit, provide access to 100 mn vaccine doses annually
As part of its expansion of investment in one of Biocon Ltd's units, Serum Institute of Life Sciences will provide access to 100 million vaccine doses annually. Biocon's unit will also be given the distribution right to Serum's vaccine portfolio, the unit of Serum Institute of India.
Notably, the Serum Institute of India is a few of the world's largest vaccine makers, and its tie-up with the Indian firm will be beneficial 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 an addition to the $150 million that the Serum Institute of Life Sciences invested in Biocon Biologics in November. 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 mutually 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 authorization 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 revised conditions 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. The new merger will help Serum Institute of Life Sciences in investing Biocon of around $300 million, whereas, BBL will be provided with additional product offerings for global markets.
Notably, the Serum Institute of India is a few of the world's largest vaccine makers, and its tie-up with the Indian firm will be beneficial 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 an addition to the $150 million that the Serum Institute of Life Sciences invested in Biocon Biologics in November. 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 mutually 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 authorization 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 revised conditions 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. The new merger will help Serum Institute of Life Sciences in investing Biocon of around $300 million, whereas, BBL will be provided with additional product offerings for global markets.
