One of the pharmaceutical stocks engaged in the manufacturing of biotechnology products and research services. The stock is in focus after receiving approval from China’s National Medical Products Administration (NMPA) for Tacrolimus capsules
Stock Price Movement
In Friday’s trading session, Biocon Limited’s share jumped to an intraday high of 1.18 percent from the previous close of Rs. 372.95. The stock opened at Rs. 377.35 and is currently trading at Rs. 371.95, with a high of Rs. 377.35 and a low of Rs. 371.25. The market capitalization now stands at approximately Rs. 44,656.32 crore.
What Happened
Biocon Pharma Limited, a Biocon subsidiary, has received approval from China’s National Medical Products Administration (NMPA) for Tacrolimus capsules in 0.5 mg, 1 mg, and 5 mg strengths.
Tacrolimus is an immunosuppressant for organ transplant patients and helps prevent organ rejection. This approval expands Biocon’s portfolio of complex drugs, and the company plans to commercialize the product in the region soon.
Key Products
Biocon Limited’s key products include INSUGEN (recombinant human insulin), CANMAb (biosimilar for breast cancer), ALZUMAb (psoriasis treatment), and BASALOG (Insulin Glargine for diabetes), addressing critical healthcare needs globally.
Strategic Focus
Biocon Limited’s strategic focus includes robust R&D investment (7-9% of revenues) to strengthen its pipeline, prioritizing debt reduction through financial restructuring, and expanding its market presence in emerging economies while enhancing offerings in established markets, driving growth and innovation in the global biopharmaceutical sector.
Business Segment Highlights
Biocon’s Generics segment saw a decline in revenue to Rs. 624 crores, with a 15% EBITDA margin and 11% of revenues spent on R&D. The Biosimilars segment performed well, growing 11% to Rs. 2,182 crores, with a 32% margin and strong market share increases in the U.S. and Europe.
The Research Services (Syngene) segment experienced a 2% revenue decline year-on-year but a 13% sequential growth to Rs. 891 crore, driven by increased demand for Discovery Services. The company successfully refinanced Rs. 9,347 crore in long-term debt, improving financial terms.
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Recent quarter results and ratios
Biocon Limited’s revenue has increased from Rs. 3,462 crore in Q2 FY24 to Rs. 3,590 crore in Q2 FY25, which has grown by 3.70 percent. The net profit of Biocon Limited has down by 84.39 percent, from Rs. 173 crore in Q2 FY24 to Rs. 27 crore in Q2 FY25.
Biocon Limited’s revenue and net profit have grown at a CAGR of 27.36 percent and 15.34 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 5.96 percent and 5.25 percent, respectively. The debt-to-equity ratio of the company is to be 0.80x. Biocon Limited’s EPS is to be Rs. 12.
Company Overview
Biocon Limited was founded in 1978 by Kiran Mazumdar-Shaw and headquartered in Bengaluru, India, and is a leading biopharmaceutical company. It specializes in affordable biosimilars, generic formulations, and complex APIs, serving over 120 countries, including the U.S. and Europe.
Written By – Nikhil Naik
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