Warsaw (Puls Biznesu) – Bioton bought the rights to produce and sell injection insulin from Ferring International Center in one of its most important agreements.
Bioton signed agreement with Ferring International Center (FIC) worth USD 40.5m. The Polish company and its subsidiary SciGen have now the right to producer injection insulin with no time limitations. Investors had expected the agreement for a month. Last Tuesday, the stock dived 10 percent because there were no good news.
“Negotiations ended a week ago but it took long to sign it due to time difference and a big number of people engaged”, Adam Wilczega, Bioton CEO said.
Thanks to this agreement, the company will no longer pay license fees amounting to 10 percent of sales.
“These fees would grow every year. In 2006 we will save some dozen million zlotys. We may produce and sell injection insulin also with other technologies of the Ferring group. In the future it may help us win new markets, including Western Europe and the USA”, Adam Wilczega said.
Since 1997, Bioton had the license from Bio-Technolgoy General. The Polish company could produce and sell human insulin for 15 years with an option for further 5 years. This agreement was valid only in Poland and Central and Eastern Europe without Baltic countries or former Soviet Union countries. The license belonged also to SciGen and Diosynth, a Dutch company from Axo Nobel group. Now Bioton will receive license fee from Diosynth amounting to USD 1m annually. Ferring sold its license because the company plans to focus on the growth hormone market.