The Board of directors of BBL, a material subsidiary of Biocon Limited approved the merger at its meeting held on September 16, BBL said in a regulatory filing.
Under the alliance, BBL will get committed access to 100 million doses of vaccines annually for 15 years and commercialisation rights of the SILS vaccine portfolio for global markets.
This will take place primarily from SILS’s upcoming vaccine facility in Pune with commercialisation rights of the SILS vaccine portfolio -including Covid-19 vaccines — for global markets.
As per the agreement, SILS will receive approximately 15 percent stake in BBL at a post-money valuation of about $4.9 billion.
BBL will generate a committed revenue stream and related margins, commencing second half of FY23. The company said that Adar Poonawalla, CEO, Serum Institute of India (SII) will have a Board seat in Biocon Biologics Limited.
The management of BBL has scheduled an investors call on Friday.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon & Biocon Biologics, said, “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.”
“This is also to further inform you that within 60 (sixty) days (or such other date as mutually agreed between the concerned parties in writing), BBL and CTPL shall finalise the scheme of merger and file the same with the jurisdictional National Company Law Tribunal (‘NCLT’),” the company said in the regulatory filing.
In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases including dengue, HIV, etc. “The two companies will enter Service Level Agreements (SLAs) for manufacturing and distribution of the vaccines and antibodies,” it added.
The company said that vaccines are a “complementary business” fit to BBL and provides a new dimension to its effort in improving global healthcare.
Earlier BBL had also announced a manufacturing and commercialization partnership in emerging markets with Boston based Adagio Therapeutics Inc. for ADG20, a novel Covid-19 antibody therapy.
“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 Adar Poonawalla.