How is the stake sale by Biocon to Serum Institute structured?

There is a strategic alliance between Biocon Biologics and Serum Institute Life Sciences. While the former is a subsidiary of Biocon Ltd, the latter is a subsidiary of Serum Institute of India. Biocon Biologics will offer 15% stake in the company to Serum and in turn it will help Biocon strengthen its position as a global vaccine and biologics manufacturer. Serum gives Biocon Biologics access to 100 million doses of vaccines per annum for the next 15 years.

The alliance is likely to help strengthen India's vaccine and biologics capabilities. The deal will be valued at $730 million for the 15% stake in Biocon Biologics so the overall valuation assigned to Biocon Biologics is $4.86 billion. The alliance also proposes to develop antibodies against infectious diseases like Dengue, HIV, etc. Adar Poonawalla will be offered a Board seat in Biocon Biologics, under the terms of the deal.