Serum Institute of India, which is the world’s biggest vaccine maker, is set to ramp up its investment in one of Biocon’s subsidiaries to $300 million (Rs 2,458 crore).
The funding will be routed through Serum Institute of Life Sciences, which is a unit of Serum Institute of India.
Biocon, led by Indian billionaire entrepreneur Kiran Mazumdar-Shaw, said in a statement that the company and Serum Institute of Life Sciences have agreed to withdraw their original deal announced in September 2021.
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 Limited.
This investment is in addition to the $150 million that Serum Life Sciences had invested in Biocon Biologics in November 2022.
Mid last year Biocon Biologics was in talks with Baring Private Equity (PE) Asia to raise funding in lieu of a minority stake. This was after it raised Rs 555 crore ($75.6 million) from Abu Dhabi’s state entity ADQ, formerly known as Abu Dhabi Developmental Holding Company, in 2021.
Prior to that, the company had secured over $255 million from global investors such as True North (earlier known as India Value Fund Advisors), Goldman Sachs, and Tata Capital between January and November 2020.
In March 2019, Biocon had hived off its biologics — or biosimilars — business into Biocon Biologics in March 2019. The company offers treatment for chronic and acute diseases, including diabetes, oncology, nephrology, and cancer besides autoimmune disorders.
According to information available on its website, Biocon Biologics is one of the leading insulin producers in the world with a portfolio comprising basal, mixed and rapid-acting insulins used to treat diabetes.