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 erosion