Shares of Biocon, the biopharmaceutical major, climbed as much as 4.8 per cent to Rs 299.70 apiece on the BSE after the company launched Trastuzumab biosimilar Ogivri in the US market. Ogivri, a biosimilar to Herceptin, has been co-developed by Biocon Biologics and Mylan and will be available in 150 mg and 420 mg strengths.
At 09:29 am, the stock was trading over 2 per cent higher at Rs 292 as compared to 0.09 per cent decline in the S&P BSE Sensex.
Ogivri is used to treat breast cancer and gastric cancer and Biocon has regulatory approval to sell it in more than 80 countries worldwide. It is the second biosimilar from the partnered portfolio of Biocon and Mylan being commercialised in the US. The biosimilar will be launched at a competitive discount for customers to help ensure access and increase treatment options for patients, said the Bengaluru-based company. READ MORE
“The US launch of Ogivri marks a significant milestone in our biosimilars journey. It is an important endorsement of our science, development and manufacturing capabilities in the area of monoclonal antibodies,” said Christiane Hamacher, CEO, Biocon Biologics.
So far in the calendar year 2019, shares of Biocon have underperformed the market by falling 9 per cent as compared to around 11 per cent rise in the benchmark Nifty50. Nifty Pharma has slipped over 8 per cent during the same period, data available with ACE Equity shows.
For the September quarter (Q2FY19), the company reported a net profit of Rs 215.7 crore. It had posted a net profit of Rs 354.7 crore for the corresponding period of the previous fiscal, including a one-time gain of Rs 171 crore as company fair valued its investment in US-based Equillium. Consolidated total income of the company stood at Rs 1,610.6 crore for the quarter under consideration as against Rs 1,375.4 crore for the same period year ago.
Analysts at Anand Rathi Share and Stock Brokers remain bullish on the stock as they expect company to get benefits of first wave of Biosimilar commercialisation in the next two years which, they believe, should drive higher revenues and margins.
"We have updated our financials reflecting latest quarterly numbers and continue to remain positive on the stock and maintain our 'BUY'rating with a target price of Rs 321 per share," the brokerage firm said in a report dated November 7.