Espirito Santo has downgraded Bangalore-based Biocon to "sell" from "neutral" and sharply revised its target price to Rs 186 a share from Rs 350, flagging off several issues, which it says raise accounting and corporate governance questions over at the biotech firm.
The investment bank points out to two issues in particular. The latest being Pfizer scrapping a deal to sell insulin products made by Biocon. Changed priorities at Pfizer (which wants to be active in its own research and business development efforts for diabetes drugs) led to the two companies parting ways, Biocon's CMD Kiran Mazumdar Shaw had said. Several analysts had been quick to point out that scrapping the deal struck only in October 2010 would be a major blow to Biocon.
What Espirito Santo is more concerned is with the manner in which the company aims to use the proceeds received from the deal.
Biocon had received USD 200 million in upfront milestone payment up on signing the deal, of which USD 100 million was deposited in an escrow account. Biocon received a per cent of the milestone payment from the escrow account when the deal was terminated. How much it received, Biocon has not disclosed. Espirito Santo analyst Chirag Talati estimates it to be USD 40 million and the company now has Rs 493 crore on the balance sheet as deferred revenues....
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12:10 PM, May 22, 2012
New Delhi: Biocon and US drug major Pfizer on Tuesday called off $350 million global alliance to commercialise the Bangalore-based firm's biosimilar versions of insulin and insulin analog products. "The companies have agreed that due to the individual priorities for their respective biosimilars businesses, it is in their best interest to move forward independently," the two said in a joint statement. In October 2010, they entered into a strategic global...
12:08 PM, Mar 13, 2012
Bangalore: Call it the Saturday night fever, but all for a good cause when nine jet-setting CEOs from corporate India lent their voice to a charity event, suitably titled 'CEOs sing for their supper'. But for Biocon founder and MD, Kiran Mazumdar Shaw, the exercise was pure passion singing. "I don't think I'm singing for my supper as I'm on a diet but am singing for these kids who need ...
07:46 AM, Jul 17, 2011
Bangalore: Call it the Saturday night fever, but all for a good cause when nine jet-setting CEOs from corporate India lent their voice to a charity event, suitably titled 'CEOs sing for their supper'. But for Biocon founder and MD, Kiran Mazumdar Shaw, the exercise was pure passion singing. "I don't think I'm singing for my supper as I'm on a diet but am singing for these kids who need...
07:46 AM, Jul 17, 2011
Villagers allege it has polluted air and ground water in the Hebbagodi region. ...
03:58 PM, Dec 02, 2008
New Delhi: Pakistan spinner Saeed Ajmal's controversial bowling action has sparked off a heated debate with some Indian greats calling him an outright chucker but their counterparts across the border have backed him to the hilt. While former spinners like Bishan Singh Bedi, Erapalli Prasanna and Maninder Singh have questioned the legality of his action, Pakistani players like Abdul Qadir and Saqlain Mushtaq and senior Indian offspinner Harbhajan Singh have...
08:22 PM, Apr 22, 2008
Biocon has entered into partnership with Bristol-Myers Squibb to provide research for development of drugs. ...
09:43 PM, Mar 14, 2007
After launching a drug for solid tumours, India's leading biotech firm Biocon will launch a new anti-arthritis drug. ...
10:34 AM, Nov 28, 2006
Biocon has unveiled BIOMAb-EGFR, a therapeutic antibody-based drug for treating tumours of epithelial origin. ...
09:45 AM, Sep 19, 2006
