Biocon aims to buy assets from bankrupt partner

The two companies have been co-developing a tablet-form oral insulin, IN1O5, for both type 1 and type 2 diabetes since announcing a tie-up in October 2004. This drug candidate could be the world’s first oral insulin product.

The project involved the use of Nobex’ technology platform for an alternative route to deliver insulin to the body and Biocon’s supply of bulk insulin. Preclinical trials have been completed and Biocon previously said that it planned to apply for regulatory clearance to begin human trials in India around the middle of 2006. Biocon had also announced its intention to file an investigational new drug application (IND) with the FDA by the same time.

In addition to the diabetes collaboration, Nobex and Biocon were also working together to develop an oral peptide product to treat acute congestive heart failure or cardiovascular diseases. This venture, the human brain-type natriuretic peptide (hBNP) program, was planned for IND filing in 2007 before going into clinical trials.

Biocon has already invested $5.8 million in Nobex – $1 million as common stock and the rest in convertible loans.

The biotech company said it does not expect the IN1O5 program to be disrupted by Nobex’ filing for Chapter 11 cover.

Nobex’ filing follows a difficult couple of years for the company, which at one point had a seemingly promising partnership with GlaxoSmithKline. Nobex and GSK signed a deal worth around $283 million in May 2002 to develop and commercialize orally administered insulin products for the treatment of diabetes. However, GSK ended the alliance in November 2003 due to “internal business reasons”.