Biotechnology major Biocon will try to acquire the intellectual property rights of its research partner, the US company Nobex Corporation. The decision comes in the wake of Nobex Corporation taking shelter under Chapter 11 of US Bankruptcy laws.

Based on progress made till date, Biocon does not anticipate any disruption to its ongoing oral insulin research programme, licensed from Nobex.

Biocon is seeking all IP assets of Nobex and also has the licensing rights that according to the agreement are able to survive any event of bankruptcy. "Biocon is in a position to select any options that it chooses," stated Kiran Mazumdar Shaw.

Biocon's investment in Nobex amounts to $1 million in common stock and $4.8 million in convertible promissory notes. As of March 31, 2005 Biocon had a 4.4 per cent ownership interest in Nobex, according to Shaw.

Biocon and Nobex Corp had entered into an investment agreement in October 2004 as well as an oral insulin joint development agreement for development and commercialisation of an oral insulin product. Biocon has been focused on leveraging its peptide production capabilities with Nobex Corp's proprietary oral peptide-delivery technology for the treatment of diabetes.

On the company's future strategy regarding this oral insulin collaborative venture, Shaw stated that the IN105 programme will be on schedule and there is no change of plans.

The present status of the Biocon-Nobex project is that animal trials are completed and the company was gearing up for human trails in June 2006 besides file an investigative new drug application (INDA) wit the US FDA.

Nobex was also working with Biocon to develop an oral peptide product referred to as the human brain type natriuretic peptide programme to treat CAD (cardiovascular disorders). This initiative was planned to file for INDA in 2007 prior to entering clinical trails.