Biocon discloses case over clinical trials

Biocon Ltd has kept the stock exchanges abreast with price sensitive information even before the company has been listed with the bourses.

The Bangalore-based integrated biotechnology firm has informed the Bombay Stock Exchange (BSE) yesterday that Supreme Court has recently heard a case which alleged Biocon violated regulatory norms by conducting human clinical trials of one its products.

The notice issued to Bombay Stock Exchange said: "The Supreme Court has refused to grant interim relief to ADOPH (the petitioner) and has directed that notice be issued in the matter to the respondents( Biocon and others), which is yet to be received by the company. The company believes that this case will not have any material adverse impact on its financial performance."

The product in focus is "r- human- insulin", Biocon's first formulation, which is expected to be launched in the domestic market this year.

In view the growing number of diabetes patients across the globe, the company expects significant growth from its focus on diabetology segment.

When contacted, an executive of the public relations company working for Biocon said the notice was made to ensure abundant disclosure about developments which took place after the company's initial public offering (IPO) was announced.

Stock market experts said the notice aimed at reassuring investors. The Biocon issue will remain open for a week beginning March 11 and was completely sold out well before the litigation came to light.

The IPO of one crore freshly issues equity shares of Rs 5 each with band of Rs 270-315 a share will close tomorrow. The issue would represent 10 per cent of the fully diluted post issue paid-up capital of the company.