Biocon, Bangalore based company announced that it has entered into an option agreement with Bristol-Myers Squibb Company for Biocon's IN-105, a prandial oral insulin product candidate.
At 09.50 am IST, Biocon was seen trading at Rs 307, up Rs 1, or 0.33%. It has touched an intraday high of Rs 321.50 and an intraday low of Rs 307.00.
Bristol-Myers Squibb will have the right to exercise an option to obtain an exclusive worldwide license to the program.
Biocon will receive a license fee in addition to potential regulatory and commercial milestone payments and royalties on commercial sales of IN-105 outside India. Biocon will retain exclusive rights to IN-105 in India.
Ms. Kiran Mazumdar-Shaw, MD and Chairman of Biocon, said: "This agreement is one huge step closer to realizing the dream of bringing oral insulin to market. We are excited to extend the excellent relationship we already enjoy with Bristol-Myers Squibb, and look forward to working closely with them to make this a reality."
Diabetes is a chronic disease that affects about 350 million people worldwide. Long-term complications of diabetes include cardiovascular complications, peripheral vascular disease (leading to and including amputation), kidney failure, and other chronic diseases. It is estimated that the direct and indirect costs of diabetes to the overall healthcare system amount to over $650 billion worldwide.