1. Biocon-Pfizer: The $350 million insulin deal that wasn’t
In March 2012, Biocon and Pfizer ‘amicably’ parted ways after their 15-month-old $350 million deal to market Biocon’s insulin products fell through. Both partners were hit hard: Pfizer lost $100 million in upfront payment, a significant part of the $100 million escrow amount and a small severance fee; for Biocon, the split restricted scope of monetising its insulin biosimilars in the US and Europe. The official reason for the break-up was a shift in priorities at Pfizer, which wanted to focus on its core strengths—diabetes, and its therapeutics not being part of them.
That’s a little difficult to believe, as priorities at big pharma don’t change at such short notice. But Biocon took it in its stride. In November, it found a partner in Bristol-Myers Squibb for its oral insulin programme (not part of the Pfizer pact).
(This story appears in the 30 November, -0001 issue of Forbes India. To visit our Archives, click here.)