Serum and Biocon Biologics sign agreement to restructure equity investment

Biocon Biologics and Serum Institute of Life Sciences (SILS) have reached an agreement to withdraw from the original equity structure contemplated under their strategic alliance announced in Sep, 2021.

While Biocon Biologics 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 an equity stake in Biocon Biologics. As per the new terms of the strategic alliance, Serum Life Sciences would make an additional equity investment of $150 million through the conversion of the $150 million loan provided to Biocon Pharma, a wholly owned subsidiary of Biocon, into equity in Biocon Biologics.

This investment is in addition to the $150 million that SILS had invested in Biocon Biologics in November 2022, resulting in SILS’s aggregate equity investment in Biocon Biologics amounting to $300 million. As per the new arrangement, Biocon Biologics will have access to 100 million doses of vaccines annually together with the distribution rights to Serum’s vaccine portfolio which will add to Biocon Biologics’ product portfolio for global markets.

A company statement informed that the new terms will serve the objectives of both companies, as it provides SILS with an aggregated equity investment in Biocon Biologics amounting to $300 million and provides Biocon Biologics additional product offerings for global markets.