Biocon and Pfizer have decided to terminate their pact to commercialise biosimilar versions of insulin and insulin analog products.
A joint statement issued by them said the two firms had decided ‘to move forward independently' to focus on their ‘individual priorities' pertaining to their biosimilar business.
Following this, the rights licensed to Pfizer by Biocon would revert to the Indian company. Biocon Chairman and Managing Director Kiran Mazumdar Shaw said Biocon would pursue its own commercial strategy and access other markets ‘through new alliances'. The two companies entered into the agreement in October, 2010, which resulted in the U.S. multi-national making an ‘upfront investment' of $200 million.
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Biocon was also to receive an additional $150 million on fulfilling drug ‘development and regulatory milestones.' In addition, Pfizer was to make payments to Biocon for selling the company's biosimilars across global markets.
In September, 2011, Biocon invested about $160 million in a new facility in Malaysia to manufacture drugs to treat diabetes that were being commercialised by Pfizer. Both said they were “committed to ensuring continuity of patient care and will work together to effect a seamless transition.”