<p>Vaccine-maker Serum Institute of India’s subsidiary Serum Institute Life Sciences has pumped an additional $150 million in Biocon Biologics, a subsidiary of Biocon and picked up 4.9 per cent stake in the company. </p>.<p>Serum Institute of Life Sciences had already invested $150 million in Biocon Biologics in November 2022. The latest fund flow will take Serum’s total investment in the company to $300 million. </p>.<p>Biocon Biologics, in a regulatory filing, said that companies reached an agreement to withdraw from the original equity structure that was announced in September 2021. As per the previous agreement between the two companies in 2021, Biocon Biologics was to offer approximately 15% stake to Serum Institute Life Sciences, at a post-money valuation of ~$4.9 billion, for which it would have had access to 100 million doses of vaccines per annum for 15 years and commercialisation rights of the SILS vaccine portfolio, including Covid-19 vaccines, for global markets. </p>.<p>“The new deal will include the complete portfolio of Serum’s vaccines and not just be limited to Covid. It has also ensured an equity saving of 10%,” said Kiran Mazumdar-Shaw, Executive Chairperson and founder of Biocon Limited in a conversation with DH. Given the fact that there is a weaning demand for Covid vaccines, this also benefits Serum Institute. There is a win-win for both companies- anti-dilutive for Biocon Biologics and Serum Institute no longer has to assure revenues and profits from the vaccines amidst the weaning demand, she added. </p>.<p>“The new terms will serve the objectives of both the companies, as it provides Serum Institute of Life Sciences an aggregated equity investment in Biocon Biologics amounting to $300 million and provides Biocon Biologics additional product offerings for global markets,” Biocon said in its regulatory filing.</p>
<p>Vaccine-maker Serum Institute of India’s subsidiary Serum Institute Life Sciences has pumped an additional $150 million in Biocon Biologics, a subsidiary of Biocon and picked up 4.9 per cent stake in the company. </p>.<p>Serum Institute of Life Sciences had already invested $150 million in Biocon Biologics in November 2022. The latest fund flow will take Serum’s total investment in the company to $300 million. </p>.<p>Biocon Biologics, in a regulatory filing, said that companies reached an agreement to withdraw from the original equity structure that was announced in September 2021. As per the previous agreement between the two companies in 2021, Biocon Biologics was to offer approximately 15% stake to Serum Institute Life Sciences, at a post-money valuation of ~$4.9 billion, for which it would have had access to 100 million doses of vaccines per annum for 15 years and commercialisation rights of the SILS vaccine portfolio, including Covid-19 vaccines, for global markets. </p>.<p>“The new deal will include the complete portfolio of Serum’s vaccines and not just be limited to Covid. It has also ensured an equity saving of 10%,” said Kiran Mazumdar-Shaw, Executive Chairperson and founder of Biocon Limited in a conversation with DH. Given the fact that there is a weaning demand for Covid vaccines, this also benefits Serum Institute. There is a win-win for both companies- anti-dilutive for Biocon Biologics and Serum Institute no longer has to assure revenues and profits from the vaccines amidst the weaning demand, she added. </p>.<p>“The new terms will serve the objectives of both the companies, as it provides Serum Institute of Life Sciences an aggregated equity investment in Biocon Biologics amounting to $300 million and provides Biocon Biologics additional product offerings for global markets,” Biocon said in its regulatory filing.</p>