INDIA BUSINESS WORLD - February 1st - February 15th - 2008
BIOCON PICKS UP 70% IN GERMAN FIRM FOR € 30 M
Biotech major Biocon has firmly pitched itself in the European market by snapping up 70% stake in German pharma player AxiCorp in a € 30-million (about Rs 172 crore) deal, that will enable the Bangalore-based player to market its injectible insulin, generics, biosimilars and biologics in the geography. Biocon chairman and managing director Kiran Mazumdar Shaw said at a press conference that “Biocon has been looking at front-ending its business in the global stage. The AxiCorp investment heralds our European foray for biosimilars like recombinant human insulin.”
The move comes barely a month after Biocon bought out a US-based startup IATRICa Inc in a sub-$10million deal, reflecting its high acquisition appetite. The company is using the enzymes business selloff proceeds for its acquisitions. Biocon divested its enzymes business, which accounted for 10% of its revenues, in July 2007 to Danish firm Novozymes for $115 million.
Biocon is looking at blending its low-cost manufacturing capabilities with AxiCorp’s low-cost distribution model, that is aligned to the new pricing regime in the German healthcare sector, to deliver affordable healthcare. The registeration process of recombinant insulin with the EMEA, the European regulatory agency which has already issued guidelines for biosimilars, would take about 18 months followed by another nine months before the product can hit the market. The insulin market size in Germany is estimated to be over € 950 million.
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