Serum Life Sciences To Make Additional Equity Investment In Biocon Biologics

Biocon Biologics Ltd., a unit of Biocon Ltd., and Serum Institute of Life Sciences have agreed to withdraw from the original equity structure under their strategic alliance announced in September 2021.

As per the new terms, Serum Life Sciences would make an additional equity investment of $150 million, or around Rs 1,230 crore, through the conversion of a loan of the same amount provided to Biocon Pharma Ltd., a wholly owned subsidiary of Biocon Ltd., into equity in Biocon Biologics.

This investment is in addition to the $150 million that Serum Life Sciences invested in Biocon Biologics in November 2022. That would take Serum's aggregate equity investment in Biocon to $300 million, or around Rs 2,500 crore.

"As per the new arrangement, Biocon Biologics will now have access to 100 million doses of vaccines annually, together with the distribution rights to Serum’s vaccine portfolio, which will add to Biocon Biologic’s product portfolio for global markets," the company said in a filing.

This agreement comes as Serum Life Sciences was awaiting approval from the National Company Law Tribunal in Maharashtra to complete the merger under the older strategic alliance, which would have given it a 15% stake in Biocon Biologics at a post-money valuation of nearly $4.9 billion, or Rs 36,046 crore.

Shares of Biocon Ltd. were trading 1.75% higher, compared to a 0.21% rise in the benchmark BSE Sensex, as of 11:32 a.m.