Biocon and US drug major Pfizer and today called off $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 $200 million and Biocon was also eligible to receive additional development and regulatory milestone payments of up to $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.
Shares of Biocon were trading at Rs 254.30 on the BSE, down 5.01% from its previous close at 10:48 am.