Biocon shares fell as much as 11.09 percent to a low of 238 rupees on the Bombay Stock Exchange following the news. The shares then retraced to 254 rupees, still down five percent.
The companies said in a joint statement the split was due to “individual priorities” for their respective businesses, adding it was “in their best interest to move forward independently.” They did not elaborate.
“The development will have a psychological impact for Biocon. It cannot find a joint venture partner like Pfizer every day,” Jagannadham Thunuguntla, head of research at SMC Global Securities, told AFP.
According to the deal struck in October 2010, Pfizer was to sell cheaper copies of diabetes products in some emerging markets and in Europe that the Bangalore-headquartered Biocon would make.
The decision to abandon the tie-up comes at a time when multinational drug makers are increasingly tying up with Indian pharmas to source cheaper generic products for sale globally.
“Biocon will work with existing partners in several countries and pursue a commercial strategy on its own and through new alliances in other markets,” its chairman Kiran Mazumdar Shaw said in the statement.
Pfizer’s general manager Diem Nguyen said the firm would “continue in active research and business development for diabetes, which represents a huge unmet need.”