Biocon in drug development talks with Bayer

According to a report in the Indian newspaper, The Economic Times, biotechnology company, Biocon, is in discussions with German pharmaceutical company Bayer regarding the co-development of biotechnology drugs.

Biocon's managing director and chairman, Kiran Mazumdar-Shaw, told the newspaper that the agreement, which initially involved research activities, could also include biotech drug development activities.

Biocon, which has not commented on the report, derives much of its revenue from ethical drugs, such as head and neck cancer treatment, BioMab EGFR, as well as its enzyme business. The firm's strategy is to increase the share of research services business to a quarter of its total revenue in the next five years from about 15 per cent currently.

Bristol-Myers Squibb (BMS) revealed back in March 2007 that it was to partner with Biocon's research services unit, Sungene, and set up a facility in Bangalore to aid discovery and early drug development.