Serum Life Sciences to double investments in Biocon Biologics to $300 million under new arrangement

BBL 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 September, 2021.

Under the fresh terms of their strategic alliance, Serum Life Sciences will 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 BBL.

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 BBL amounting to $300 million, the exchange filing said.

Shares of Biocon were trading at Rs 227.85 on the NSE on Tuesday at 9:30 am, up Rs 2.20 or 0.97% from previous close.

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 provide SILS an equity stake in BBL.

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.The new terms will serve the objectives of both companies, as it provides SILS an aggregated equity investment in BBL amounting to $300 million and provides BBL additional product offerings for global markets, the exchange filing said.

BBL manufactures biosimilars for patients and healthcare systems in several countries either directly or through a network of partners and distributors in over 100 countries, the company website said.

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