India's Biocon to divest in Germany's AxiCorp

India's Bangalore-based Biocon has decided that it will be divesting its stake in the German drug distributor, AxiCorp GmbH. Some three years back it had taken up controlling stake in the company and now it will be selling the shares to the minority shareholders of the company.

AxiCorp as a company deals with marketing and distribution of various products related to the healthcare industry. It was started by a group of industry professionals in 2002, who wanted to milk the distribution market in Germany and Europe.

Meanwhile, talking about the divestment, Kiran Mazumdar-Shaw, MD Biocon said that that since they did the Pfizer deal, the relevance of AxiCorp has changed and that is why it was best possible to move out of the industry.

In 2008, Biocon had taken over 78 per cent stake in AxiCorp by paying $43.7 million. It is now going to sell its shares for about $59.37 million.

As for the Pfizer deal, it happened in October last year when Biocon sold off its global rights to commercialise bio-similar diabetes treatment to it. This was done so that selling the drugs in less-regulated emerging markets was possible.