Pfizer ending Insulin deal a big blow for Biocon; shrs tank
Pfizer - Biocon alliance has called off due to individual priorities and in Shares of Biocon fell more than 8% on Tuesday morning after US pharma major Pfizer scrapped a deal to sell insulin products made by the Bangalore-based biotechnology company.
All rights licensed to Pfizer revert to Biocon as of March 12. Insulin distributed under the brand names Univia and Glarvia will be commercially available from Biocon, the company said.
Investors were disappointed that the deal struck only in October 2010 had ended so abruptly and feel this is a major blow to Biocon. At 10:15 hrs, the stock was down over 6% at Rs 251 on NSE.
"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 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." said Kiran Mazumdar Shaw, Biocon's CMD.
Separately on Twitter, she said the two companies had parted ways amicably and changed priorities at Pfizer had led both companies to pursue independent paths.