The company, privately owned by Cyrus Poonawalla and his son Adar Poonawalla, plans to float a special purpose vehicle (SPV) for its vaccine candidates, ET has learnt. The amount raised would go to this entity and not to SII. The company expects to close the fundraising exercise by September.
MUMBAI: Serum Institute of India (SII), the world’s largest vaccine manufacturer, is in talks with private equity investors including Blackstone and KKR as well as philanthropists and social venture funds to raise up to $1 billion for Covid-19 vaccine development, said two people aware of the matter.
The company, privately owned by Cyrus Poonawalla and his son Adar Poonawalla, plans to float a special purpose vehicle (SPV) for its vaccine candidates, ET has learnt. The amount raised would go to this entity and not to SII. The company expects to close the fundraising by September.
“We are in talks with a few investors but there is no comment beyond that,” said an SII spokesperson. Blackstone, KKR spokespersons declined to comment.
SII received $150 million earlier this month from the Bill & Melinda Gates Foundation for development and distribution of the AstraZeneca-Oxford University vaccine candidate as well as that of US biotech firm Novavax for low- and middle-income countries. SII has plans to manufacture 100 million doses every month and 400 million doses of the Oxford vaccine by the end of this year.
Goldman Sachs, Citi and Avendus will manage the fundraising exercise, said the people cited above. SII has invested close to $200 million for the AstraZeneca-Oxford vaccine at “personal risk”, SII CEO Adar Poonawalla told ET in an interview in July. The company hadn’t received any funding or reached advance purchase agreements with the Indian government, he’d said, adding that the aim was to focus on getting the necessary approvals to conduct trials and start manufacturing the vaccine.
“So far we have five candidates, including two of our own. We might explore partnership with two more, which we can't talk about at this stage,” he had said. Besides the AstraZeneca-Oxford tie-up, SII’s pipeline also includes its own candidates, among them a Covid-19 vaccine in partnership with US firm Codegenix.
The company is also working on a trial to determine the efficacy of the BCG vaccine against the disease. Last week, the AstraZeneca-Oxford candidate received permission to start Phase 2 and 3 trials in India. In the Novavax agreement, SII has an exclusive licence for development, co-formulation, filling and finishing, registration and commercialisation of the NVX-CoV2373 vaccine product for the SARS-CoV-2 virus for India. Novavax trials are yet to start in the country.
Five years ago, SII had approached private investors for a similar-sized fundraise for a 10% stake in the parent at a $12 billion valuation. Talks were called off subsequently. While the company blamed market volatility for that decision, investors were hesitant about the premium valuation sought and lack of liquidity options such as an IPO.
The race for a global vaccine for Covid has however transformed industry dynamics. Indian companies have attracted partnerships due to the scale of manufacturing that the country offers. SII has exclusive agreements with AstraZeneca and Novavax.
The company sold its manufacturing facility in the Czech Republic to Novavax earlier this year. Hyderabad-based vaccine manufacturer Biological E recently announced a manufacturing deal with Johnson & Johnson to produce close to 400 million doses of the latter’s vaccine candidate.
Source - The Economic Times
Serum Institute Of India sends out Covishield vaccine - Consignment of Covishield Vaccine arrived in Delhi, Chennai, Kolkata, Guwahati, Shillong, Ahmedabad, Hydrabad, Vijayawada, Bhubaneswar, Patna, Bengaluru, Lucknow, Chandigarh
Serum Institute of India launches India’s first fully indigenously developed pneumococcal vaccine, 'PNEUMOSIL'
Oxford COVID-19 vaccine: Serum Institute likely to submit final Covishield trial data within 10 days
SII’s Adar Poonawalla on Covid vaccine, pricing and rollout at Hindustan Times Leadership Summit 2020
COVISHIELD Completes Enrolment of Phase III clinical trials under partnership of ICMR and Serum Institute of India
Government Secures Vaccine Supplies For Half Of The Indian Population From Serum Institute And Novavax
IAVI, Merck, and Serum Institute of India Join Forces to Develop Monoclonal Antibodies for COVID-19 and Ensure Prompt and Equitable Global Access
Serum Institute Of India Takes A Multipronged Approach In Quest To Produce World’s First Covid-19 Vaccines
Serum Institute of India to produce up to an additional 100 million covid 19 vaccine doses for india and low and midle income countries in 2021
Adar Poonawalla CEO of Serum Institute of India, the world’s largest vaccine manufacturer, explains the timing, challenges & cost of vaccinating the world against COVID-19
Serum Institute looking for a $1 billion shot to fight covid, talks on with Blackstone, KKR and others
Serum Institute of India Says Covid Vaccine Likely to Be Ready by End of 2020, Final Pricing in 2 Months
Serum institute of india to produce up to 100 million covid-19 vaccine doses for india and low-and middle-income countries as early as 2021
50% of our Covid vaccines will be for India, people won't have to buy them, govts will pay: Adar Poonawalla
AstraZeneca vaccine's success in early human trials, Will Begin AstraZeneca Vaccine Trial in India After Applying for Licence Next Week, Says Serum Institute
Serum Institute of India CEO: ‘We plan to make millions of doses of Covid vaccine over three months’:’
New supply agreement between UNICEF and Serum Institute of India makes pneumococcal conjugate vaccine available at US$2.00 per dose, a 43 % reduction from the Gavi price at the start of the Advance Market Commitment
Serum Institute confident of manufacturing Covid vaccine’s 100 million doses if trials establish efficacy
Serum Institute’s Journey To Success | ET NOW Covid-19 vaccine possible by Q2 of 2022: Adar Poonawalla
Adar Poonawalla discusses Serum Institute's progress in the global battle against COVID-19 with Shereen Bhan, CNBC-TV18
Adar Poonawalla talks with Aabha Bakaya about the success story of Serum Institute of India. Tune in to know all about the journey of the company.
Bill Gates confers Indian Council of Medical Research "Lifetime Achievement Medal" on Dr. Cyrus Poonawalla
Dr. Cyrus Poonawalla conferred with 'Lifetime Achievement Award’ by the Asian Business Leadership Forum
Dr. Cyrus Poonawalla conferred with the prestigious honorary degree by the University of Oxford, U.K.