Biocon Ltd. founder Kiran Shaw learned the intricacies of enzymes while studying how to make beer. Now Pfizer Inc. (NYSE:PFE), the world’s largest drugmaker, is tapping that knowledge to revive its insulin business.
The biotechnology company that Shaw started in her garage in 1978 for about $1,200 is Asia’s biggest insulin maker, with a market value of about $1.43 billion. The Bangalore, India-based group signed a deal in October to supply Pfizer with four generic insulin products in emerging markets, including India and Brazil, and then the U.S. and other developed nations.
Biocon received $200 million upfront from New York-based Pfizer, which is re-entering the $14 billion global insulin market almost four years after it scrapped its Exubera inhaler. India’s biggest drug-supply deal will help meet global demand forecast by market researcher RNCOS to expand 20 percent a year through 2015 as the number of diabetics tops 285 million.
“This is a perfect match,” said Ranjit Kapadia, vice president of institutional research at HDFC Securities Ltd. in Mumbai. “This deal will open up many more avenues for Biocon. Pfizer gets a low-cost manufacturing base, and they just have to market the products.”
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