Biocon tanks on heavy volumes

Biocon tumbled 6.5% to Rs 326.55 at 14:24 IST on BSE on heavy volumes amid media reports of withdrawal of Trastuzumab application and the subsequent clarification issued by the company.

Meanwhile, the S&P BSE Sensex was up 245.63 points or 0.78% at 31,694.66.

On the BSE, 12.91 lakh shares were traded on the counter so far as against the average daily volumes of 3.74 lakh shares in the past one quarter. The stock had hit a high of Rs 353.70 and a low of Rs 320.80 so far during the day. The stock had hit a record high of Rs 424.15 on 19 July 2017 and a 52-week low of Rs 255.66 on 12 August 2016.

The stock had underperformed the market over the past one month till 14 August 2017, sliding 12.51% compared with the Sensex's 1.79% fall. The stock had, however, outperformed the market over the past one quarter, gaining 6.78% as against the Sensex's 4.18% rise. The scrip had also outperformed the market over the past one year, advancing 23.76% as against the Sensex's 11.71% rise.

The large-cap company has equity capital of Rs 300 crore. Face value per share is Rs 5.

Biocon in its clarification issued to the stock exchanges during market hours today, 16 August 2017 said that as previously communicated, whilst its drug substance facilities for Trastuzumab and Pegfilgrastim were approved, the European regulatory authorities had informed Biocon of the need for a re-inspection of its drug product facility for these products.

Biocon further said that the request for withdrawal of the dossiers and re-submission is part of the EMA procedural requirements linked to this re-inspection and will be considered by the EMA's Committee for Medicinal Products for Human Use (CHMP).

Biocon said it is on track to complete its corrective and preventive actions (CAPAs) by the end of this quarter and it is its intent to seek re-inspection and re-submission thereafter.

On a consolidated basis, net profit of Biocon declined 51.2% to Rs 81.30 crore on 5.6% decline in net sales to Rs 927.40 crore in Q1 June 2017 over Q1 June 2016.

Biocon is India's largest and fully-integrated, innovation-led biopharmaceutical company.

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