Biocon, India's top listed biotech firm, on Friday announced an agreement with Bristol-Myers Squibb for its oral insulin drug IN-105. The deal could potentially earn Biocon hundreds of millions of dollars in royalties. Bristol-Myers Squibb will have the right to exercise an option to obtain an exclusive worldwide license to the program, Biocon said.
Shares in Biocon traded 2 per cent higher at Rs 313 on the NSE in early trade following a 4 per cent surge on Thursday.
"If Bristol-Myers Squibb exercises its option to license IN-105 following the successful completion of the Phase II trial, Bristol-Myers Squibb will assume full responsibility for the development program, including all development and commercialization activities outside India. Biocon will receive a license fee in addition to potential regulatory and commercial milestone payments and royalties on commercial sales of IN-105 outside India. Biocon will retain exclusive rights to IN-105 in India," Biocon said in a statement to the BSE.
In October 2010, the Bangalore-based company had entered into an agreement with Pfizer to sell its insulin products across the world. That deal fell apart in March this year. The two companies had cited "individual priorities" as the reason for the split of relationship.