Biocon to close Nobex buyout by March-end

Biocon would close the acquisition of the US-based research company Nobex Corp by a month, said company officials.

"Biocon will take over Nobex's technology and drug development programs by March-end unless a higher bidder emerges," they said.

Nobex, which had recently signed a research partnership with Biocon for the development of oral insulin, had filed for bankruptcy. Its promoters had put the company up for sale in December, 2005.

Biocon had provided a $1.2 million loan to Nobex a couple of years ago when the US research company slipped into financial crisis.

Later, Biocon offered to pay $3.5 million (approximately Rs 15.75 crore) for bagging the company's intellectual property. However, the actual valuation of the deal is not known as it would be fixed by an independent agency as per the procedures of the bankruptcy filing.

"We do not know whether any other bidders are there in the fray and what could be the final valuation of the deal," said a Biocon executive.

Nobex Corp filed for bankruptcy after a joint research deal with GlaxoSmithKline PLC worth up to $283 million was terminated in 2003. Nobex had raised more than $80 million since its inception in 1993 and employed about 50 people.

An industry analyst said Biocon would gain access to Nobex's technology to turn injectable drugs into pills without changing the effectiveness of drugs.