) and Indian biotech company Biocon recently announced the
termination of their global agreement for biosimilars of insulin
and insulin analog products. Pfizer and Biocon said that they
intend to move forward on their own based on their priorities for
their respective biosimilars businesses.
The companies will work together towards the seamless transition
of the deal. All licensing rights will go back to Biocon. Biocon
will exclusively manufacture, supply, market and support insulin
distributed under the brand names Univia and Glarvia.
Biocon said that it remains committed to bringing biosimilar
insulins to market and intends to work with existing partners in
several markets. The company will most likely seek new partners for
Meanwhile, Pfizer also remains committed to its biosimilars
initiative and intends to pursue the same through collaborations as
well as in-house efforts.
Pfizer had announced the Biocon deal at a time when several
global pharma companies were looking towards Indian companies to
help strengthen their presence in emerging markets. The Biocon deal
involved upfront payments from Pfizer of $200 million, an
additional $150 million on the achievement of development and
regulatory milestones and payments related to product sales.
Per the terms of the deal, Pfizer would have commercialized the
products across the world excluding certain territories. Pfizer was
to share commercialization rights with Biocon for all the products
in Germany, India and Malaysia. In case of several developing
markets, Pfizer would have shared commercialization rights with
With the termination of this deal, Biocon has lost a major
marketing partner and is now facing the task of looking for another
marketing partner with a global presence. Biocon shares were down
6% following the announcement.
We currently have a Neutral recommendation on Pfizer, which
carries a Zacks #3 Rank (short-term Hold).
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