Serum Institute of Life Sciences, a subsidiary of Serum Institute of India (SII), has reached an agreement with Biocon Biologics (BBL) to withdraw from the original equity structure finalised under the strategic alliance announced in September 2021.
The company will now make an additional equity investment of $150 million through the conversion of an earlier loan provided to Biocon Pharma into equity in BBL.
Under the 2021 agreement, BBL was to get access to 100 million doses of vaccines annually and SILS would have received a 15 per cent stake in BBL at a post-money valuation of $4.9 billion. BBL was also expected to commercialise SII's vaccine portfolio, including Covid-19 vaccines, for global markets.
Also, Adar Poonawalla, the chief executive officer of SII, would have got a seat on the board of BBL.
The new investment is in addition to the $150 million that SILS had invested in BBL in November last year. It will take SILS's aggregate equity investment in BBL to $300 million.
"While BBL had received approval from the National Company Law Tribunal (NCLT) in Karnataka, SILS was awaiting approval from the NCLT in Maharashtra to complete the merger. This would have provided SILS with an equity stake in BBL," the company said in a regulatory filing on Tuesday.
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"As per the new arrangement, BBL will have access to 100 million doses of vaccines annually together with the distribution rights to Serum's vaccine portfolio which will add to BBL's product portfolio for global markets," it added.