The shares of the biopharmaceutical company gained up to 8 percent after the company’s subsidiary got approval from Japan’s health authority for an immunity drug.
With a market capitalization of Rs 45,910.94 crore, the shares of Biocon Ltd were trading at Rs 382.05 per share, increasing around 7 percent as compared to the previous closing price of Rs 358.60 apiece.
Reason for Rise
The shares of the company have seen such a bullish movement after Biocon’s subsidiary, Biocon Biologics received approval from Japan’s Pharmaceuticals and Medical Devices Agency (PMDA). The regulatory body gave the green light to Ustekinumab BS, a subcutaneous biosimilar injection to Stelara, marking a key breakthrough for the company.
Moreover, the biosimilar, designed to treat Psoriasis Vulgaris and Psoriatic Arthritis (PsA), was developed and manufactured in-house and will be exclusively marketed in Japan by Yoshindo Inc., Biocon’s commercial partner.
Brokerage recommendation
Jefferies, one of the well-known brokerages globally, gave a ‘Buy’ call on the pharma stock with a target price of Rs 400 apiece, indicating a potential upside of 4 percent from Tuesday’s price of Rs 384 per share.
Financial performance
Analyzing a company’s financial performance, revenue grew by 4 percent from Rs 3,462 crore in Q2FY24 to Rs 3,590 crore in Q2FY25, during the same time frame, the company’s net profit decreased significantly by 84 percent from Rs 173 crore to Rs 27 crore.
Generics revenue fell 8% YoY to ₹624 crore, with recovery expected in H2 FY25 via new launches. Biosimilars grew 11% YoY to ₹2,182 crore, driven by the U.S. and Europe, with 15 new launches in emerging markets. Research Services revenue dipped 2% YoY to ₹891 crore but rose sequentially by 13%.
Also read….
Market Outlook
The company anticipates multiple biosimilar launches, with five expected by FY27. It is gaining market share in the U.S. and Europe, maintaining leadership in key products. Ongoing cost improvement programs aim to boost profitability and recover lost business in the Generics segment.
Strategic Focus
The company is focusing on R&D investment (7%-9% of revenues) to support pipeline growth, prioritizing debt reduction through financial restructuring, and expanding market presence in
emerging markets while enhancing product offerings in established markets to drive overall growth and operational efficiency.
Company Profile
Biocon Limited focuses on treating diabetes, cancer, and autoimmune diseases. Its segment includes Generics, Biosimilars, Novel Biologic, and Research Services. It has developed and commercialized novel biologics, biosimilars, and complex small-molecule active pharmaceutical ingredients (APIs).
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
