Biocon in limelight

about 3 years ago
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Biocon, which had closed yesterday at Rs.376.90, the stock opened higher at Rs.392 and even went up to Rs.398.60.

Yesterday night, the company announced that its subsidiary, Biocon Biologics Limited (BBL) is being merged into Covidshield Technologies Private Limited (‘CTPL), wholly-owned subsidiary of Serum Institute Life Sciences Private Limited (‘SILS’).

Under the terms of the agreement, BBL will offer approximately 15% stake to SILS, at a post-money valuation of $4.9 billion, for which it will get committed access to a 100 million doses of vaccines per annum for 15 years, primarily from SILS’s upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio (including COVID-19 vaccines) for global markets.

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, HIV, etc. The two companies will enter Service Level Agreements for manufacturing and distribution of the vaccines and antibodies.

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