Biocon divests stake in AxiCorp

The company did not give a reason for the decision or the financial details.

Biotechnology firm Biocon said it will divest its 70 per cent stake in its German arm – Axicorp GmbH following its global alliance with Pfizer for commercialisation of biosimilar insulin and insulin analogs.

While announcing its Q4 and yearly results,Biocon said “it will divest stake in its German subsidiary Axicorp Gmbh to the existing group of promoter shareholders”.

In February 2008,Biocon had picked up 70 per cent stake in AxiCorp GmbH for a consideration of 30 million euros.

Post the stake acquisition,Axicorp became the licensee for Biocon’s biosimilar Insulin and Glargine in Germany and had the sole responsibility for commercialising these products.

“As a consequence of this divestment,these licence rights revert to Biocon,” the company said in a statement. The company,however,did not disclose the financial details of the divestment.

The move follows Biocon’s global alliance forged last year with Pfizer to commercialise biosimilar insulin and insulin analogs.

“This divestment is in line with the objectives of the global alliance (with Pfizer) wherin the synergies derived from the global development and investments can be leveraged for the German market as well,” the company said.

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Axicorp,during the transition period will continue to provide services to Biocon related to the clinical development of insulin and glargine in Europe,it said.

Shares of Biocon were today trading at Rs 374.60 on the Bombay Stock Exchange in the late afternoon trade,down 2.65 per cent from its previous close.