After teaming up in a partnership last year, the Serum Institute of Life Sciences is doubling its stake in biosimilar manufacturer Biocon Biologics to $300 million.
The two agreed in September to form a strategic alliance. Under the deal, Serum Institute took a 15% stake in Biocon in exchange for $150 million.
Now, Serum’s life sciences division will make an additional investment through the conversion of a $150 million loan into a larger equity position in Biocon, according to a filing (PDF) with the BSE.
Biocon didn’t specify the percentage of Serum's new stake. The companies are awaiting regulatory approval to complete the deal.
Under terms of the new agreement, Biocon gets access to 100 million doses of vaccines annually, including those for COVID-19, plus distribution rights to Serum’s vaccine portfolio to enhance its marketed offerings.
In the September announcement, Serum estimated Biocon’s value at $4.9 billion.
The same month, Biocon was slapped with multiple Forms 483 by the FDA in an apparent move to enforce biosimilar quality requirements. The production facilities the agency targeted were located in India and Malaysia. Inspectors cited 11 observations at each of the sites in India and six observations at the Malaysian plant.
The Serum Institute of Life Sciences is a subsidiary of the Serum Institute of India, the world's largest vaccine producer by doses.