Biocon-Pfizer $350 mn deal scrapped, shares hit 52-week low
New Delhi: Biocon and US drug major Pfizer on Tuesday called off USD 350 million global alliance to commercialise the Bangalore-based firm's biosimilar versions of insulin and insulin analog products.
"The companies have agreed that due to the individual priorities for their respective biosimilars businesses, it is in their best interest to move forward independently," the two said in a joint statement.
In October 2010, they entered into a strategic global agreement for the worldwide commercialisation of Biocon's biosimilar versions of insulin and insulin analog products: recombinant human insulin, glargine, aspart and lispro.
"As of March 12, 2012, all rights licensed to Pfizer will revert to Biocon, and all insulin distributed under the brand name UniviaTM and GlarviaTM will be commercially available from Biocon Ltd. only, and will be exclusively manufactured, supplied, marketed and supported by Biocon," the statement said.
Under the agreement, Pfizer was to make upfront payments of USD 200 million and Biocon was also eligible to receive additional development and regulatory milestone payments of up to USD 150 million. Besides, Biocon was eligible to receive additional payments linked to Pfizer's sales of its four Insulin biosimilar products across global markets.
Both the companies said they are committed to ensuring continuity of patient care and will work together to effect a seamless transition.
"Biocon remains committed to delivering its Biosimilar Insulins portfolio to global markets in its endeavour to make a difference to diabetic patients across emerging and developed economies," Biocon Ltd CMD Kiran Mazumdar Shaw said.
"Biocon will continue to work with its existing partners in several markets and will pursue a commercial strategy on its own and through new alliances in other markets," she said.
Pfizer said it continues to be dedicated to developing a broad portfolio of biosimilars medicines, including monoclonal antibodies and recombinant proteins products, both internally and through collaborations.
"In addition, we will continue to be active in our own research and business development efforts for diabetes, which represents a huge unmet medical need, and we remain committed to seeking new solutions to help physicians and patients," Pfizer Biosimilars General Manager Diem Nguyen said.
Biocon shares hits 52-week low
Shares of Biocon tumbled by over 6 percent Tuesday, as a drug deal of the biotechnology firm with US-based pharmaceutical giant Pfizer was scrapped.
After plunging as much as 11 percent to touch a 52-week low of Rs 238 in the intra-day trade on the BSE, Biocon shares recovered some of the losses and settled for the day 6.31 percent down at Rs 250.80.
At the NSE also, the stock closed at Rs 250.85, down 6.24 percent.
The fall in Biocon share price was in sharp contrast to an overall rally in the market, where the barometer index Sensex ended 225.95 points up at 17,813.62.