“The companies have agreed that due to the individual priorities for their respective biosimilars businesses, it is in their best interest to move forward independently,” the two said in a joint statement
New Delhi: Domestic pharma major Biocon and US drug major Pfizer on Tuesday called off the $350 million global alliance to commercialise the Bangalore-based firm’s biosimilar versions of insulin and insulin analog products, reports PTI.
“The companies have agreed that due to the individual priorities for their respective biosimilars businesses, it is in their best interest to move forward independently,” the two said in a joint statement.
In October 2010, they entered into a strategic global agreement for the worldwide commercialisation of Biocon’s biosimilar versions of insulin and insulin analog products: recombinant human insulin, glargine, aspart and lispro.
“As of 12 March 2012, all rights licensed to Pfizer will revert to Biocon, and all insulin distributed under the brand name UniviaTM and GlarviaTM will be commercially available from Biocon only, and will be exclusively manufactured, supplied, marketed and supported by Biocon,” the statement said.
Under the agreement, Pfizer was to make upfront payments of $200 million and Biocon was also eligible to receive additional development and regulatory milestone payments of up to $150 million. Besides, Biocon was eligible to receive additional payments linked to Pfizer’s sales of its four insulin biosimilar products across global markets.
Both the companies said they are committed to ensuring continuity of patient care and will work together to effect a seamless transition.
“Biocon remains committed to delivering its biosimilar insulins portfolio to global markets in its endeavour to make a difference to diabetic patients across emerging and developed economies,” Biocon CMD Kiran Mazumdar Shaw said.
“Biocon will continue to work with its existing partners in several markets and will pursue a commercial strategy on its own and through new alliances in other markets,” she said.
Pfizer said it continues to be dedicated to developing a broad portfolio of biosimilars medicines, including monoclonal antibodies and recombinant proteins products, both internally and through collaborations.
“In addition, we will continue to be active in our own research and business development efforts for diabetes, which represents a huge unmet medical need, and we remain committed to seeking new solutions to help physicians and patients,” Pfizer Biosimilars general manager Diem Nguyen said.
Shares of Biocon were trading at Rs253.70 on the BSE, down 5.23% from its previous close at 1300 hours.
The fiscal witnessed "loss of momentum in overall activity", the RBI report said, but added India has done well as compared to several other countries.
The Reserve Bank has attributed decline in the economic growth rate to three-year low of 6.9% in 2011-12 largely to deterioration in the external environment.
"Recent data indicate that after a smart recovery during 2009-10 and 2010-11, real GDP growth slipped sharply to 6.9% during 2011-12 largely on account of the deterioration in the external environment and the slowdown in domestic investment," Reserve Bank of India ( RBI) said in its monthly bulletin released. The external factors that influenced the performance of the economies of the world include euro zone sovereign debt crisis and rising prices of commodities, it said.
According to the Central Statistical Organisation (CSO), India's growth rate is estimated to slip to 6.9% in 2011-12 from 8.4% in the preceding two years. The fiscal also witnessed "loss of momentum in overall activity", the report said, but added India has done well as compared to several other countries.
"Notwithstanding the recent slowdown, the rate of growth of the Indian economy remained quite impressive in a cross-country context," the report added.
The Indian economy, it said, has "generally outperformed the other economies, with the notable exception of China, right through 2007 to 2010 and is expected to continue to do so in 2011 and 2012."
Savings and investment rates dipped during 2010-11 mainly reflecting a decline in household financial savings and private corporate sector investment, it said.
"During the four years since global financial crisis...the growth rate of real GDP averaged 7.6% which was lower by nearly two percentage points than during 2005-06 to 2007-08," the study said.
The estimated growth rate in 2011-12 is only slightly higher than 2008-09 when the Indian economy was adversely and indirectly affected by global financial crisis, it said.
The deceleration in real GDP during 2011-12, it said, was evident across the major sectors, "largely in agriculture on account of base effect followed by industry and to some extent in services".
Within industry, mining and quarrying sector contracted while manufacturing sector growth rate, which accounts for around 80% of industrial sector, nearly halved, the report said.
Nifty should close decisively above 5,400 to form an uptrend
The RBI’s CRR cut on Friday saw a positive opening but nervousness ahead of the Union Budget resulted in the market ignoring the bounce back in industrial output and closing with modest gains. Today the National Stock Exchange (NSE) saw a volume of 74.58 crore shares, which was above its 10-day average. We had mentioned on Friday that the Nifty should close above 5,400 over the next few days to maintain the gains; we continue to maintain it. The index’s intraday high was above this level; however, it closed below it at 5,360. Today was the second consecutive trading session where the benchmark made a higher high and a higher low.
The market opened on a positive note, buoyed by the Reserve Bank of India’s (RBI) ‘surprise’ 75 basis point cut in CRR on Friday. Stock of consumer goods, banking, capital goods, technology, oil & gas and auto led the gains in early trade. The Nifty opened 86 points higher at 5,420 and the Sensex jumped 269 points to resume trade at 17,772.
The opening figure on the Sensex was its intraday high while the Nifty hit the day’s high almost immediately with the index at 5,422. The market came off the highs immediately as profit booking set in, despite the fact that industrial growth for January came in much higher than expectations at 6.8%.
The indices witnessed a sharp fall in mid-morning trade even as president Pratibha Patil, in her address to the both Houses of parliament at the onset of the Budget session said that economic growth would return to the 8-9% range on the back of “strong fundamentals and favourable domestic factors”.
The market dipped into the red briefly just after 11.30am to touch the day’s low. At the lows, the Nifty fell to 5,327 and the Sensex 17,495.
The benchmarks were sideways in the second half of trade as the European indices witnessed a lower opening. The market closed with modest gains on speculations that the RBI, in its policy review later this week, would defer a rate cut on the rebound in the industrial output numbers.
The Nifty settled 26 points up at 5,360 and the Sensex gained 84 points to close trade at 17,588.
The advance-decline ratio on the NSE was in favour of the gainers at 1028:655.
The broader indices outperformed the Sensex as the BSE Mid-cap index climbed 1.06% and the BSE Small-cap index advanced 0.70%.
The top sectoral gainers were BSE Capital Goods (up 2.56%); BSE Consumer Durables (up 1.90%); BSE Realty (up 1.33%); BSE Oil & Gas (1.24%) and BSE Bankex (up 1.22%). The losers were BSE IT (down 1.06%); BSE TECk (down 0.75%) and BSE Healthcare (down 0.15%).
The Sensex was led by State Bank of India (up 3.96%); Larsen & Toubro (up 3.54%); Reliance Industries (up 3.02%); Jindal Steel (up 2.69%) and BHEL (up 2.32%). The key losers were Mahindra & Mahindra (down 1.88%); Cipla (down 1.83%); ONGC (down 1.71%); Infosys (down 1.51%) and TCS (down 1.35%).
The major gainers on the Nifty were SBI (up 3.72%); L&T (up 3.36%); RIL (up 3%); Siemens (up 2.90%) and Reliance Power (up 2.75%). M&M (down 2.12%); ONGC (down 1.96%); TCS (down 1.90%); Cipla (down 1.61%) and HDFC (down 1.49%) were the top losers on the index.
Markets in Asia closed mostly lower on growth concerns within the region as Chinese exports grew at a slower-than-expected rate of 18.4% in February while imports rose 39.6% in the month, leading to a trade deficit of $31.5 billion. On the other hand, Japanese core machinery orders rose in January, a sign that the economy is picking up after last year’s devastating earthquake and tsunami.
The Shanghai Composite declined 0.19%; the Jakarta Composite fell by 0.11%); the KLSE Composite tanked 0.90%); the Nikkei 225 was down by 0.40%; the Straits Times shed 0.03%; the Seoul Composite lost 0.78% and the Taiwan Weighted settled 1.10% lower. Bucking the trend, the Hang Seng gained 0.23%. At the time of writing, the key European indices were mixed and the US stock futures in the negative.
Back home, foreign institutional investors were net buyers of shares totalling Rs1,284.65 crore on Friday while domestic institutional investors were net sellers of shares amounting to Rs12.90 crore.
Natco Pharma has received a compulsory licence from the Indian patents office to manufacture and sell a generic version of Bayer’s cancer treatment drug Nexavar. The Indian Patents Act has a provision to issue compulsory licence to drug makers after three years of the grant of patent on particular products which are not available at affordable prices. The stock jumped 6.28% to close at Rs314.75 on the NSE.
Wipro Consumer Care & Lighting, the FMCG arm of Wipro, today launched LED products for the domestic segment complimenting its range of commercial and institutional LED lighting. The Wipro LED lights are designed and tested extensively for Indian conditions, the company said in a statement. The stock gained 1.39% to close at Rs438.20 on the NSE.
The revenue department today attached Jet Airways’ accounts, maintained by global airlines’ body IATA, for non-payment of service tax dues to the tune of Rs69 crore. The revenue department had sent notice on last Friday to the airline cautioning that its accounts would be frozen if it fails to clear the service tax. The stock slipped 0.03% to close at Rs294 on the NSE.