IFC to back BioE Ltd's pipeline of vaccines, including for Covid-19

The company will raise $30 mn from IFC to support the proposed expansion plan for its pipeline of vaccines and pharma products, besides playing a role in expediting Covid-19 vaccine development

Biological E Limited (BioE), which develops and manufactures vaccines, will raise $30 million from International Finance Corporation (IFC), the investment arm of the World Bank. With this fundraising, the company aims to support the proposed expansion plan for its pipeline of vaccines and pharmaceutical products, besides playing a role in expediting the development and availability of a Covid-19 vaccine.

BioE is an unlisted and closely held company whose main sponsor Mahima Datla holds a majority of its shares, and her family the rest. It is pre-qualified by the World Health Organization (WHO) to produce seven vaccines, including liquid pentavalent vaccine (LPV), and vaccines for Japanese encephalitis (JE) and Measles Rubella (MR). The company also makes pharmaceutical products.

The proposed investment by IFC involves an ‘A’ loan of up to $30 million to BioE to part-finance its project, which will be carried out at its vaccine manufacturing facilities at Shameerpet, Hyderabad.

The project will increase the availability of affordable vaccines to prevent potentially fatal diseases and contribute towards reduction in mortality levels. The company claims to invest significantly in research & development, which is key to building a pipeline of products for under-met medical needs. It plans to launch several new products in India and other developing countries in the next five years, according to IFC.

IFC's long-term financing will benefit the company as vaccine developments are long-gestation projects. Patient capital from IFC will help the company in its plans to launch new products. IFC will continue to share its knowledge and experience in global vaccines and pharmaceutical industry as the company develops new products. In addition, IFC can provide lessons taken from its other investments in the sector and access to its global industry network of healthcare sector professionals and experts, according to IFC.