The Hindu Business Line : Serum Institute signs pact with Akorn

Close on the heels of acquiring 14 per cent stake in the UK-based Lipoxen Plc vaccine manufacturer Serum Institute of India has signed an agreement with the Chicago-based Akorn Inc.

Dr Subash Kapre, Executive Director, Serum Institute of India, told Business Line that Akorn has reached an agreement with his institute on the terms for the issuance of one million shares of Akorn's common stock at a share price equal to $3.56 million.

The final issuance of shares is subject to completion of documentation and customary closing conditions. He said this is expected to be completed within the next 15 days and was intended as a token investment. He said this is a 15-year tie-up and is for the development of anti-cancer and biological products.

This tie-up could be classified as a mix of technological and production venture, he said.

Dr Subash said the manufacture of these products would begin at the new special economic zone of SIIL and would begin by end of December 2007. Initially, some generic products would be manufactured and would be available in the markets by end of 2009 and noted that the facility would also look at the production of specific products with IP, which would happen in about five years.It may be recalled that in October 2004, Akorn and Serum had entered into an exclusive drug development and distribution agreement for oncology and other injectible products. Since that time, Serum has begun constructing a dedicated manufacturing facility in Pune to support these efforts and Akorn expects regulatory filings to commence in 2007.

He noted that for the development procedures Akorn would also be making investments, though he did not divulge the exact amount that would be put in. Akorn is focussed on three major lines of business - ophthalmology, hospitals and contract manufacturing and has a revenue base of over $50 million. It has manufacturing facilities in Decatur, Illinois and Somerset, New Jersey.

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