Bioton has reported purchasing a technology and selling rights for oral blood sugar-lowering drug named Avaron (generic name Glimepiride). The value of the transaction was not disclosed. According to Bioton, the total value of oral anti-diabetes drugs in Poland in 2005 amounted to PLN 240m. The value of drugs which include glimepiride substance amounted to PLN 60m, and grew 21% y/y. Bioton is expected to start selling Avaron within the next 2 months. Glimepiride is used in type II diabetes, the most common type of diabetes that is found in 90% of patients, where insulin is not necessary to control the blood sugar.
We believe that this transaction complements Bioton’s anti-diabetes drugs portfolio well, and the news could further support the stock price.