Biocon expects statin prices to stabilise soon

Biocon, the Bangalore-based biotech major, sees stability in statin prices in regulated markets and expects less competition from Chinese companies due to regulatory and tax issues affecting them in the West. Statins are cholesterol lowering drugs.

According to Rakesh Bamzai, president-marketing, Biocon, "We see price stability in statins for a couple of quarters and expect the trend to continue in Europe and United States. This price stability has benefitted the company in the first-quarter of fiscal 2007-08 and produced top line growth."

Chinese firms which were dumping statins in the regulated markets during the last two years are increasingly being subjected to strict regulations on pollution grounds have had their export benefits reduced to 7 per cent from a high of 15 per cent.

This has made the firms sell at a more realistic prices which bear a relationship to the cost of production.

To combat price instability, the company has laid stress on brand-building for its formulation business. "We are building our branded business so that we can have pricing power. We also enjoy good pricing because of the quality of the product, our regulatory compliance and the speed of marketing the product," he added.

Biocon recenlty signed a pact with Abraxis BioScience, an integrated, global biopharmaceutical company, wherein Abraxis will license the right to develop a biosimilar version of G-CSF in North America and the European Union. Under the terms of the agreement, Biocon will receive an upfront licensing fee and, royalties from Abraxis BioScience.