The alliance between Serum Institute Life Sciences and Biocon Biologics will allow the companies to make a meaningful impact in fighting infectious diseases, Biocon and Biocon Biologics Executive Chairperson Kiran Mazumdar-Shaw said on Friday.
The partners are also said that the opportunities for the partnership are limitless, as they stressed strengthening the raw material supply chain.
On Thursday, Biocon Biologics, a subsidiary of Biocon, had said it will offer around 15 percent stake to Serum Institute Life Sciences (SILS), at a post-money valuation of about $4.9 billion. SILS is a subsidiary of the Serum Institute of India (SII).
For offering the 15 percent stake, Biocon Biologics Ltd (BBL) will get committed access to 100 million doses of vaccines per annum for 15 years, primarily from SILS' upcoming vaccine facility in Pune with commercialisation rights of the SILS vaccine portfolio, including COVID-19 vaccines, for the global market, Biocon had said.
"This alliance between Serum Institute Life Sciences and Biocon Biologics will allow us to combine our strengths in vaccines and biologics for making a meaningful impact in fighting infectious diseases," Mazumdar-Shaw said in a virtual press meet on the alliance.
In addition to vaccines, the strategic alliance will develop antibodies targeting several infectious diseases. This alliance provides an asset-light stake in each other's businesses, she added.
Also Read: COVID-19: Hetero Biopharma seeks SEC approval for market authorisation of Sputnik V vaccine
On the development, Serum Institute of India CEO Adar Poonawalla said, "When we say that this partnership is 100 million doses of vaccines etc, this is the minimum. The opportunities are limitless and as mentioned we will look at expanding on monoclonals and other therapeutics and vice versa."
He also stressed that both the partners also wanted to make investments in strengthening the raw material chain, as many of these raw materials manufacturers are finding it hard to scale up and match the vaccine manufacturing supply.
When asked about the easing of export restrictions for the COVID-19 vaccines, Poonawalla said, "In the next two months we do expect slow easement of exports … but the decision is with the government of India and, we will go by what they feel is appropriate because they have to balance the needs and stockpiling of the vaccines for India in case of third waves and fourth waves".
According to a regulatory filing on Thursday, "Pursuant to the terms of the agreement, BBL will generate a committed revenue stream and related margins, commencing H2, FY23. Adar Poonawalla will have a board seat in Biocon Biologics Limited." In addition to vaccines, the strategic alliance will also develop antibodies targeting several infectious diseases like dengue and HIV, it added.
The two companies will enter Service Level Agreements for manufacturing and distribution of the vaccines and antibodies, the filing had said. Shares of Biocon Ltd closed at Rs 376.95 per scrip on the BSE, up 0.01 per cent from their previous close.
(Edited by : Jomy Jos Pullokaran)