SERUM PICKS UP 50% STAKE IN VIAL MAKER
Deal will help Serum Institute gain more control over its vaccine supply chain
Serum Institute of India (SII) has bought a 50 per cent stake in drug vial maker Schott Kaisha from its co-owners, Kairus Dadachanji and Shapoor Mistry, for an undisclosed sum. Schott Kaisha, a joint venture between Germany’s specialty glass company Schott AG and India’s Kaisha group, is a leading manufacturer of pharmaceutical packaging products such as vials, syringes, ampoules and cartridges.
Serum Institute of India (SII) has bought a 50 per cent stake in drug vial maker Schott Kaisha from its co-owners, Kairus Dadachanji and Shapoor Mistry, for an undisclosed sum.
Schott Kaisha, a joint venture between Germany’s specialty glass company Schott AG and India’s Kaisha group, is a leading manufacturer of pharmaceutical packaging products such as vials, syringes, ampoules and cartridges.
While the deal will help SII to have more control over its supply chain (glass vials being a critical component of vaccine packaging), it will allow Kaisha to focus on its other pharmaceutical ventures.
Adar Poonawalla, CEO, SII, said, “Even the best medication can’t reach the patient without the right packaging. Securing this supply chain is of strategic importance. Schott is the perfect partner for us to do this because of its expertise and global network.” “As a longtime customer, we use Schott Kaisha’s vials, ampoules, and syringes to store our vaccines, including Covishield.”
Sources in the know said Dadachanji and Mistry would now focus on bringing in new pharmaceutical products -- both drugs and drug delivery systems -- to the front end of the market. Kaisha group companies such as Sovereign Pharma are contract manufacturers and make drugs like remdesivir for firms like Cipla.
Dadachanji, managing director of the Kaisha group, said the group would expand its “horizon” to cater to the front of the pharmaceutical value chain. “We want to work more closely with the medical community, and channelise our strengths by bringing ease of drug administration to healthcare workers and highly effective medication for our end consumers,” he said. “My son, Rishad, and I will remain in close contact with the industry through our other businesses, namely Sovereign Pharma, Kaisha Lifesciences, Kaisha Packaging, Kairish Innotech, and Packwell Industries.”
Schott AG, owned by Carl Zeiss Foundation, clocked a turnover of 2.2 billion euros in the fiscal year 2020. The 130-year-old company has presence in 34 countries and, thus, presents a good opportunity for SII to tap the high-demand market of glass packaging of pharma products.
Frank Heinricht, CEO, Schott, said, “We are looking forward to strong impulses from this partnership. It is an excellent example of shifting towards new cooperation models, with greater synergies between pharma manufacturing and packaging production.”
The joint venture will definitely continue to supply its customers in India and abroad, said Eric L’heureux, the new MD and former longstanding head of operations.