Biocon, a leading maker of biotechnology drugs, and Bayer AG are in talks that may lead to collaborating on developing new drugs, Biocon’s Chairman Kiran Mazumdar-Shaw said on Thursday.

“Bayer believes that Biocon could be a good research partner for biological products,” Ms Shaw said in an e-mailed response to questions. Bangalore-based Biocon’s Syngene research unit could also be a “good services provider,” she added. However, the companies haven’t signed an agreement yet, Ms Shaw said. The news was reported by the Economic Times.

Drugmakers, including Switzerland’s Novartis AG and London-based GlaxoSmithKline Plc, are collaborating with Indian companies for research and manufacturing to reduce costs.

Biocon also has a research agreement with US-based Bristol-Myers Squibb Co, which said in March it plans to increase its research operations in India.