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For Biocon, windfall seen from drug launch

Settlement with innovators of a key drug clears up legal hurdles, offers up a revenue machine

Ram Prasad Sahu  |  Mumbai 

Biocon stock is up five per cent this week after its partner Mylan settled up with Roche and Genentech, which hold patent for cancer drug trastuzumab. With analysts predicting more gains for the stock, the development looks significant for Biocon. In 2016, the cancer drug is said to have clocked sales of just under $7 billion (Rs 46,000 crore), largely from developed markets of the United States or US and the European Union. Analysts at Morgan Stanley believe Mylan and Biocon would clock sales of $200 million within two years of the drug’s launch, factoring in a 60 per cent ...

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For Biocon, windfall seen from drug launch

Settlement with innovators of a key drug clears up legal hurdles, offers up a revenue machine

The Biocon scrip is up about 5 per cent this week after the company announced that its global development and marketing partner, Mylan has announced a settlement with Roche and Genentech who hold the patent for cancer drug, trastuzumab. Since the development is significant and boost Biocon's fortunes, analysts see more gains for the scrip.The drug is estimated to have generated sales of just under $7 billion (about Rs 46,000 crore) largely from developed markets of US and the European Union in 2016. Analysts at Morgan Stanley believe that Mylan and Biocon would be able to generate sales of $200 million in two years of launch assuming a 60 per cent price erosion, and a 15 per cent market share. This should help Biocon generate about $40 million (about Rs 260 crore) in profits assuming a 35 per cent profit share. The upside from the emerging market countries is expected to be over and above this profit estimate.The product is expected to be launched in the second half of 2018 in Europe . Biocon stock is up five per cent this week after its partner Mylan settled up with Roche and Genentech, which hold patent for cancer drug trastuzumab. With analysts predicting more gains for the stock, the development looks significant for Biocon. In 2016, the cancer drug is said to have clocked sales of just under $7 billion (Rs 46,000 crore), largely from developed markets of the United States or US and the European Union. Analysts at Morgan Stanley believe Mylan and Biocon would clock sales of $200 million within two years of the drug’s launch, factoring in a 60 per cent ... image
Business Standard
177 22

For Biocon, windfall seen from drug launch

Settlement with innovators of a key drug clears up legal hurdles, offers up a revenue machine

Biocon stock is up five per cent this week after its partner Mylan settled up with Roche and Genentech, which hold patent for cancer drug trastuzumab. With analysts predicting more gains for the stock, the development looks significant for Biocon. In 2016, the cancer drug is said to have clocked sales of just under $7 billion (Rs 46,000 crore), largely from developed markets of the United States or US and the European Union. Analysts at Morgan Stanley believe Mylan and Biocon would clock sales of $200 million within two years of the drug’s launch, factoring in a 60 per cent ...

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Business Standard
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