The board of Biocon Biologics (BBL) has approved the merger of Covidshield Technologies (CTPL), a wholly-owned subsidiary of Serum Institute Life Sciences Private (SILS) with Biocon Biologics, a subsidiary of Biocon.Covidshield Technologies is a private company and a wholly-owned subsidiary of Serum Institute Life Sciences, which has the rights to commercialise SILS vaccines.

CTPL is in the business of commercialisation of vaccines. BBL is engaged in the business of development, manufacturing, and commercialisation of biosimilars and other biologics. Vaccines were a natural adjacency to BBL’s existing platform.

The merger with CTPL would allow BBL to enter the vaccine space.Post-merger of CTPL, BBL will get committed access to a 100 million doses per annum for 15 years, primarily from SILS’s upcoming vaccine facility in Pune with commercialisation rights of the SILS vaccine portfolio, including Covid-19 vaccines for global markets.

BBL will generate a committed revenue stream and related margins, commencing H2FY23. Adar Poonawalla will have a board seat in BBL. Under the terms of the agreement, BBL will offer 15% stake to SILS. There is no cash consideration involved in this deal.