Vaccines major Serum Institute of India has put its plans to divest around 10 per cent stake in the company on hold for the time being on account of global financial slowdown.
"Well, now we have stopped all discussions with funds, we looked at roughly Rs 80,000 crore valuation, roughly USD 12 billion," Serum Institute of India CEO and Executive Director Adar C Poonawalla told PTI.
"We have stopped discussions as the funds have indicated that with the global financial slowdown these valuations may not be possible and we can re-examine the matter once liquidity is restored globally," he added.
When asked what was the stake percentage the company was looking at for divestment, Poonawalla said: "We were thinking of divesting around 10 per cent."
The money to be raised was to be used for philanthropy and some real estate investments, he added.
Serum Institute was in talks with funds to divest around 10 per cent stake.
In November last year, Serum Institute had inked a pact with drug major Cipla for distribution of pediatric vaccines in Europe.
As per the agreement, Serum Institute of India was to develop and manufacture pediatric vaccines and Cipla was tasked to seek European Medicines Agency approval and market the products in Europe.
"Serum Institute believes that this tie-up with Cipla is a perfect platform for making vaccines available for Europeans as Serum also shares the common philosophy of Cipla of making vaccines/pharmaceutical products available at the most affordable prices," Poonawalla had said.
The company is also planning to launch five new vaccines over a five year timeline.
"We have planned a roll out of five new vaccines over the next five years," Poonawalla said.
The vaccine maker is fully owned by the Poonawalla family.
Founded in 1966 by Dr Cyrus Poonawalla, Serum Institute of India manufactures a whole range of vaccines, including for Polio, Diphtheria, Tetanus, Pertussis, Hib, BCG, r-Hepatitis B, Measles, Mumps and Rubella vaccines.
