India's Biocon makes first foreign takeover

The Bangalore, India-based biotechnology company Biocon has made its first overseas acquisition, Nobex, a US-based drug development firm for $5.0 million.

The purchase currently involves only the assets of Nobex, including applications and patents relating to oral insulin, cardiovascular disease and inflammatory bowel disorders, not the staff. The acquisition is funded internally. Biocon had entered into agreement with Nobex in October 2004 for co-development and commercialization of the oral B-type naturiuretic peptide. Biocon had also made a staggered investment of around $6.0 million in Nobex until it filed for bankruptcy.

Biocon's chairman, Kiran Mazumdar-Shaw, said in an interview: "this acquisition has given us an IP platform and full range of ongoing oral insulin and oral BNP programs. Nobex, which started operations in 1993, had seen accumulative investment of $90.0 million. When the bankruptcy began, Biocon made an opening bid of $3.5 million to acquire its assets."