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Biocon makes $3.5M bid for Nobex IP
By agencies
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Thursday, 02 February 2006, 20:30 IST
BANGALORE: India’s Biotechnology major, BIOCON, has made a “stalking horse” or early suitor bid of $3.5 million for the intellectual property (IP) assets of its troubled U.S. research and development (R&D) partner Nobex Corp.
The U.S.-based company that has filed for bankruptcy safeguards under Chapter 11 says in its Web site that it will auction its IP assets on March 16. In order to co-develop oral insulin tablet IN105 and a hear failure drug BN054 with NobexÂ’s, both the entities form an alliance in October 2004.
Both of them are in advanced pre-clinical stages. According to the Web site, the deadline for submitting bids are March 13; auction on March 16 and sale hearing on March 20.
Meanwhile, the Bangalore-based Biocon will be looking out for rival bids, which may start coming in later this month, the company sources said. While domestic pharma companies have been on an acquisition spree, a favorable outcome in the Nobex case would arguably make Biocon the first Indian company to acquire international IP that is under development in this manner.
In the early stages of its partnership, Biocon invested a separate amount of $5.8 million in Nobex. This includes - $1 million as common stock and the rest in convertible loans.
Biocon’s Chairperson, Kiran Mazumdar Shaw said, “Biocon has exclusive licensing rights which as per the agreement survive any event of bankruptcy.” The biotechnology major announced its intent to go for Nobex's entire intellectual assets as soon as the latter filed for Chapter 11 in early December.