Biocon up on plans to divest 10% of its revenue in R&D

Biotechnology major Biocon has gained over 2.5% at Rs 425 on the BSE after the company plans to spend 10% of its annual biopharma revenue on research and development in the next fiscal.

The stock opened at Rs 415 and touched a high of Rs 426 on BSE. A combined nearly 3,00,000 shares changed hands on the counter till 1120 hours on NSE and BSE.

The company, which is pursuing R&D in both novel biologics as well as biosimilars (generic versions of biologic drugs), in various stages of trials, had spent around Rs 131 crore on R&D in the previous fiscal year which was 6 per cent of the biopharma sales.

“As an innovation-led company, Biocon continuously invests in cutting-edge innovation that will deliver exponential value in the long-term. On an average, the company is likely to continue spending around 10% of its biopharma sales on R&D,” Biocon CMD Kiran Mazumdar Shaw said.