In return, BBL will get committed access to 100 million doses of vaccines annually for 15 years and commercialisation rights of SILS’ vaccine portfolio – including Covid-19 vaccines – for global markets, primarily from from SILS’ upcoming vaccine facility in Pune.
BBL will generate a committed revenue stream and related margins, starting from the second half of FY23. The company said Adar Poonawalla, CEO of Serum Institute of India (SII), will have a Board seat in BBL.
BBL will issue shares and receive the contemplated rights through a merger with Covidshield Technologies Pvt Ltd (CTPL), a wholly owned subsidiary of SILS, it said.
The board of directors of BBL approved the merger at its meeting held on September 16, BBL said in a regulatory filing on Thursday.
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.”
The company said in the filing that BBL and CTPL will finalise the scheme of merger within 60 days and file the same with the jurisdictional National Company Law Tribunal (NCLT).
“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,” Poonawalla said.
The BBL management has scheduled an investors’ call on Friday.
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.
BBL said vaccines are a “complementary business” fit and provides a new dimension to its effort in improving global healthcare.
Earlier, BBL had announced a manufacturing and commercialization partnership in emerging markets with Boston-based Adagio Therapeutics Inc for its novel Covid-19 antibody therapy, ADG20.
