Serum Institute of India Ltd, the world’s largest vaccine maker by number of doses produced and sold, has acquired a defunct unit of Czech Republic-based injectable polio doses maker Nanotherapeutics Inc. for €72 million (Rs521 crore). The current acquisition by the company is the second overseas one since 2012, when it bought a plant in Holland.
Few Important Key Points related to this deal:
- The acquisition will help the Pune-based company become the largest injectable polio vaccine maker in the world by increasing production capacity four-fold to more than 200 million doses by 2019.
- The plant, located on 35 acres, hasn’t been functional.
- Serum Institute will invest €30-40 million to upgrade it and make it functional over the next 2-3 years.
- The objective is to convert this old Baxter flu plant to the largest injectables polio vaccine plant in the world in two-and-a-half years’ time.
- Currently, the unit has 45 employees and Serum Institute plans to increase by another 100-150 employees.
- As informed by Serum Institute there will be no change in the management.
- The Indian firm has already paid upfront payment of €45 million for the acquisition, while the rest is to be paid over the next one year.
About Serum Institute:
- Serum Institute supplies vaccines including diphtheria, tetanus, pertussis, HIB, BCG, r-Hepatitis B, measles, mumps, rubella, meningitis a, influenza and polio vaccines, to more than 147 countries.
- The company plans to produce a total of 1.2-1.3 billion doses of vaccines in India, and about 200-250 million of doses of vaccines overseas in the next three years.
- Serum Institute has been growing at a 30% compound annual growth rate for the last five years, both in terms of revenue and profit, and hopes to continue the run with the launch of its new vaccine, he added.
- The company, which comes up with a new vaccine every two years, is going to introduce a new Rotavirus vaccine in the next two months.
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