Serum Institute founder hints at merger with Cipla

Leading vaccines manufacturer Serum Institute founder Cyrus Poonawalla has given an indication of a possible merger of the firm with drug major Cipla.
According to Poonawalla, the two firms, which had inked a pact for distribution of paediatric vaccines in Europe in November last year, have had discussions on the matter.
"A little bit of talks [to discuss the merger] have happened. There is a small chance of it happening," he said in an interview to TV channel CNBC-TV18.
He, however, ruled out putting up Serum Institute for sale, while maintaining that a merger between the two companies could result in synergies for both.

Poonawalla said a concrete move for merger would depend on how their existing partnership panned out.
"We have to see how the initial partnership bears fruit. If it moves in the right direction, maybe we will take it to the next stage," he said.
When contacted a Cipla spokesperson said: "Both the companies are committed for a long-term partnership for the distribution of vaccines in Europe. We have no further comment to make."
As per their agreement inked last year, Serum Institute of India (SII) would develop and manufacture paediatric vaccines and Cipla would seek European Medicines Agency approval and market the products in Europe.