US Pfizer, India's Biocon scrap insulin pact

March 13, 2012

India's largest biotechnology firm, Biocon, and US pharmaceutical giant Pfizer said Tuesday they would scrap a joint plan to sell insulin products, sending Biocon's shares plunging.

Following the news Biocon shares fell as much as 11.09 percent to a low of 238 rupees on the Bombay Stock Exchange, before retracing partly to end the day at 250.8, still down 6.31 percent.

The companies said in a joint statement that the split was due to "individual priorities" for their respective businesses, adding it was "in their best interest to move forward independently". They did not elaborate.

"The development will have a psychological impact for Biocon. It cannot find a joint venture partner like Pfizer every day," Jagannadham Thunuguntla, head of research at SMC Global Securities, told AFP.

According to the deal struck in October 2010, Pfizer was to sell cheaper copies of diabetes products in some emerging markets and in Europe that the Bangalore-headquartered Biocon would make.

"With the Pfizer deal hitting the rocks, Biocon will have to scout for newer partners, especially for developed markets," said Sudarshan Padmanaban, analyst at Prabhudas Lilladher brokerage, in a note to investors.

The decision to abandon the plan comes at a time when multinational drug makers are increasingly tying up with Indian pharmas to source cheaper generic products for sale globally.

"Biocon will work with existing partners in several countries and pursue a commercial strategy on its own and through new alliances in other markets," its chairman Kiran Mazumdar Shaw said in the statement.

Pfizer's general manager Diem Nguyen said the firm would "continue in active research and business development for diabetes, which represents a huge unmet need".

Explore further: US approves India's Ranbaxy to make generic Lipitor

Related Stories

US approves India's Ranbaxy to make generic Lipitor

December 1, 2011
Indian pharmaceutical giant Ranbaxy won US regulatory approval to make the first generic version of cholesterol lowering drug Lipitor, a Pfizer product whose patent expired Wednesday.

India's Wipro profit edges up, shares dip on weak outlook

July 20, 2011
India's third-largest software firm Wipro posted a better-than-expected rise in first-quarter net profit on Wednesday but gave a muted revenue outlook due to global economic uncertainty.

Recommended for you

In most surgery patients, length of opioid prescription, number of refills spell highest risk for misuse

January 17, 2018
The possible link between physicians' opioid prescription patterns and subsequent abuse has occupied the attention of a nation in the throes of an opioid crisis looking for ways to stem what experts have dubbed an epidemic. ...

Patients receive most opioids at the doctor's office, not the ER

January 16, 2018
Around the country, state legislatures and hospitals have tightened emergency room prescribing guidelines for opioids to curb the addiction epidemic, but a new USC study shows that approach diverts attention from the main ...

FDA bans use of opioid-containing cough meds by kids

January 12, 2018
(HealthDay)—Trying to put a dent in the ongoing opioid addiction crisis, the U.S. Food and Drug Administration on Thursday slapped strict new restrictions on the use of opioid-containing cold and cough products by kids.

Taking ibuprofen for long periods found to alter human testicular physiology

January 9, 2018
A team of researchers from Denmark and France has found that taking regular doses of the pain reliever ibuprofen over a long period of time can lead to a disorder in men called compensated hypogonadism. In their paper published ...

Nearly one-third of Canadians have used opioids: study

January 9, 2018
Nearly one in three Canadians (29 percent) have used "some form of opioids" in the past five years, according to data released Tuesday as widespread fentanyl overdoses continue to kill.

Growing opioid epidemic forcing more children into foster care

January 8, 2018
The opioid epidemic has become so severe it's considered a national public health emergency. Addiction to prescription painkillers, such as oxycodone and morphine, has contributed to a dramatic rise in overdose deaths and ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.