A division of the Serum Institute of India, the largest manufacturer of vaccines worldwide, is the Serum Institute of Life Sciences. According to the revised partnership agreement, it would contribute $150 million after turning a loan to Biocon Pharma Ltd. into stock in Biocon Biologics Ltd., the business said.
Serum Institute of India, the largest manufacturer of vaccines in the world under the direction of Adar Poonawalla, would increase its investment in one of Biocon Ltd.’s subsidiaries, which is also supported by private equity investors, by doubling it to $300 million (Rs 2,458 crore).
According to a statement released by Biocon on Tuesday, led by executive chairperson Kiran Mazumdar-Shaw, Biocon Biologics Ltd. and Serum Institute of Life Sciences (SILS) have decided to scrap their initial arrangement that was announced in September 2021 in favor of a new one.
In accordance with the revised contract, SILS would contribute $150 million after converting a loan to Biocon Pharma Ltd. into stock in Biocon Biologics. A fully owned division of Biocon Ltd., which is listed in Mumbai, is Biocon Pharma. This is in addition to the $150 million SILS spent on Biocon Biologics in November of last year.
The Bengaluru-based biopharmaceutical company Biocon said the agreement will grant SILS access to 100 million doses of vaccines annually as well as distribution rights to Serum’s vaccine portfolio.
The serum would own a certain percentage of Biocon Biologics under the new deal, but neither the percentage nor the unit’s value was made clear by Biocon. It has given Serum a 15% share in Biocon Biologics in September 2021.
Four investors in the style of private equity have previously invested in Biocon Biologics.
On a pre-money equity basis, the Indian PE company True North agreed to invest Rs 536.25 crore in Biocon Biologics in January 2020 at a valuation of Rs 21,450 crore ($3 billion at the time). Tata Capital Growth, a private equity firm run by Tata Capital Ltd., decided to invest Rs 225 crore in Biocon Biologics in July of that year.
At a post-money equity valuation of $3.94 billion (about Rs 29,500 crore), Goldman Sachs agreed to invest Rs 1,125 crore ($150 million then) in Biocon Biologics in November 2020. As of January 2021,
The sovereign wealth fund of Abu Dhabi, ADQ, decided to invest Rs 555 crore ($75.6 million) in Biocon Biologics in order to acquire a 1.8% share at a post-money valuation of about $4.17 billion (about Rs 30,605 crore).
