Bristol Myers can choose to assume full responsibility for the development of the drug IN-105, if its mid-stage trial is successful.

Biocon, which has been looking to partner the drug for nearly two years, said it would receive a license fee as well as milestone payments and royalties based on commercial sales of the drug outside India. It will retain the rights to IN-105 in India.

Financial terms of the deal were not available.

Currently, there are no insulin tablets available and patients with diabetes who need insulin -- a naturally occurring protein that controls blood sugar -- must inject it.

Earlier this year, Pfizer scrapped a deal to sell injectable insulin products made by Biocon.

Biocon shares, which rose more than 4 percent in the previous session, were down 0.4 percent on Friday, while the broader market was up 0.3 percent.

(Reporting by Aradhana Aravindan; Editing by G.Ram Mohan)

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