Biocon gains 3%, at 6-month high in a weak market; stock up 18% in 3 weeks

Biocon said its subsidiary Biocon Pharma has received approval of its ANDA for Posaconazole Delayed-Release tablets from the US FDA.

Shares of Biocon hit an over six-month high of Rs 410.50, up 3 per cent on the BSE in Tuesday’s intra-day trade after its subsidiary Biocon Pharma received approval of its ANDA for Posaconazole Delayed-Release tablets from the US Food & Drug Administration (USFDA).

Biocon in an exchange filing said, this product is indicated for use in the prevention of certain fungal infections in patients with severely weakened immune systems and is available in 100mg strength. This approval further adds to Biocon’s portfolio of vertically integrated complex drug product, the company said.

The stock of biotechnology company traded at its highest level since July 20, 2021. In the past three weeks, the stock has outperformed the market by surging 18 per cent, as compared to a nearly 6 per cent decline in the S&P BSE Sensex.

At 10:52 am; the stock was up 2 per cent, as against a 0.7 per cent decline in the benchmark index. The counter saw huge trading volume with a combined around 5 million equity shares changing hands on the NSE and BSE.

In October-December quarter (Q3FY22), Biocon’s consolidated revenues grew by 18 per cent year-on-year (YoY) to Rs 2,223 crore, driven by a strong performance across all business segments. Net profit jumped 11 per cent at Rs 187 crore on YoY basis.
Earnings before interest tax and depreciation and amortization (Ebitda) grew by 25 per cent YoY at Rs 537 crore, which was impacted by mark- to- market loss attributed to Biocon Biologics’ equity investment in Adagio. Ebitda margin improved to 24 per cent from 23 per cent in a year ago quarter.

While announcing Q3 results on January 20, 2022, the company’s management said Biocon Biologics achieved a key milestone with the commercialization of the world's first interchangeable biosimilar, Insulin Glargine, in the U.S. Approvals for several of generics and biosimilars in global markets, and renewal of key long-term research service agreements at Syngene, position the company for a strong close to this fiscal, it added.