InvestorQ : Why is the Serum Institute planning to raise $1 billion in funds and how will it be deployed?
Deepa Salunkhe made post

Why is the Serum Institute planning to raise $1 billion in funds and how will it be deployed?

Answer
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Arya Nanda answered.
1 month ago


Serum Institute, based out of Pune and part of the Poonawala group, is looking to raise $1 billion for the purpose of Covid-19 vaccine development. Serum is the world’s largest vaccine company by volumes and is in tie-up with Oxford Research.

Serum is currently in discussions with PE firms like Blackstone and Kohlberg Kravis Roberts or KKR. As stated earlier, Serum Institute has already partnered with AstraZeneca of UK for making the potential COVID-19 vaccine developed by University of Oxford.

Adar Poonawalla confirmed that fundraising plans were at an early stage where Serum is looking to dilute a minority stake in its COVID SPV. Serum is also taking a big risk in the venture as it plans to make 100 million doses of vaccine every month.

This production run will be scaled up to 400 million doses by end of 2020. While it has already received $150 million from the Bill & Melinda Gates Foundation, the actual cost could be much higher and Serum will look to re-insure its project risk in this case.

Serum Institute has already infused $200 million for the AstraZeneca-Oxford vaccine even without any support from the Indian government. The next step is to get the mandatory approvals to carry out trials at various stages and start manufacturing the vaccine.