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

Mind-body therapies immediately reduce unmanageable pain in hospital patients

July 25, 2017
Mindfulness training and hypnotic suggestion significantly reduced acute pain experienced by hospital patients, according to a new study published in the Journal of General Internal Medicine.

Study suggests ending opioid epidemic will take years

July 20, 2017
The question of how to stem the nation's opioid epidemic now has a major detailed response. A new study chaired by University of Virginia School of Law Professor Richard Bonnie provides extensive recommendations for curbing ...

Team-based model reduces prescription opioid use among patients with chronic pain by 40 percent

July 17, 2017
A new, team-based, primary care model is decreasing prescription opioid use among patients with chronic pain by 40 percent, according to a new study out of Boston Medical Center's Grayken Center for Addiction Medicine, which ...

Private clinics' peddling of unproven stem cell treatments is unsafe and unethical

July 7, 2017
Stem cell science is an area of medical research that continues to offer great promise. But as this week's paper in Science Translational Medicine highlights, a growing number of clinics around the globe, including in Australia, ...

Popular heartburn drugs linked to higher death risk

July 4, 2017
Popular heartburn drugs called proton pump inhibitors (PPIs) have been linked to a variety of health problems, including serious kidney damage, bone fractures and dementia. Now, a new study from Washington University School ...

Most reproductive-age women using opioids also use another substance

June 30, 2017
The majority of reproductive-age and pregnant women who use opioids for non-medical purposes also use at least one other substance, ranging from nicotine or alcohol to cocaine, according to a University of Pittsburgh Graduate ...

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.