| Pfizer Inc. has agreed to pay an initial $200 million to the Indian biotechnology company Biocon Ltd. for the right to sell its insulin products.The world's biggest drugmaker by revenue also agreed to pay Biocon as much as $150 million more in development and regulatory milestone payments. The marketing and distribution margins that make upto 20 per cent of the product price at the retail level, go to the marketer...so this begets the question why BUY the Biocon stock? Why not the Pfizer stock? Insulin is used in the treatment of diabetes. Biocon makes recombinant human insulin, as well as generic version of Sanofi-Aventis ( SNY - news - people ) SA's insulin Lantus, Novo Nordisk ( NVO - news - people ) AS's NovoLog, and Eli Lilly and Co. ( LLY - news - people )'s HumaLog. Its recombinant human insulin has been approved in 27 countries and is on sale in 23. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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