Biocon Biologics Ltd.'s board approved a merger with a new vaccine subsidiary of the Serum Institute of India.
Biocon Ltd.'s arm approved allotment of 15% of the equity share capital of Biocon Biologics to the Serum Institute for merger with Covidshield Technologies Pvt., according to an exchange filing. The deal, subject to statutory approvals, doesn't involve any cash payments.
Adar Poonawalla, chief executive officer at Serum Institute, will have a seat on Biocon Biologics' board.
Biocon Biologics, a biosimilars and biologics company, will get committed access to 10 crore doses of vaccines annually for 15 years after the merger, first announced in September. The doses will be provided from the Serum Institute's upcoming vaccine facility in Pune with commercialisation rights for a vaccine portfolio, including Covid shots, for global markets.
Biocon Biologics is expected to generate a committed revenue stream and related margins starting the second half of fiscal 2022-23, said the filing.
Biocon Biologics had a net worth of Rs 3,185 crore and generated revenue of Rs 1,941 crore in the year ended March 2021. Covidshield Technologies had no revenue during the year and a net worth of Rs 70,000.
Shares of Biocon were trading 0.65% higher at 10:10 a.m. on Tuesday, tracking the 0.56% rise in the benchmark S&P BSE Sensex.
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