This pharma stock is hot even after 39% rally

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26 Aug, 2025 12:21

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Biocon share price has rallied nearly 39 percent in the last three months. In the last seven of the eight sessions, it has gained nearly 18 percent and it is not done yet.

Global brokerages expect the stock to give another 22 percent return from the current levels, especially after the launch of biosimilar Trastuzumab in the US for treating breast ans stomach cancers.

Biocon and Nasdaq-listed Mylan NV, on December 2, launched Ogivri (trastuzumab-dkst), a biosimilar to Herceptin (trastuzumab).

Ogivri is available in a 420mg multi-dose vial and a 150mg single-dose vial to provide patient dosing and treatment flexibility.

Ogivri was the first biosimilar trastuzumab approved by the US Food and Drug Administration (FDA) and unanimously recommended by the FDA Oncologic Drugs Advisory Committee (ODAC), the company said in its BSE filing.

Ogivri is approved for all indications of Herceptin, including for the treatment of HER2-overexpressing breast cancer and metastatic stomach cancer (gastric or gastroesophageal junction adenocarcinoma).

While having an overweight call on the stock, with a target price at Rs 350 per share, Morgan Stanley said the company launched the biosimilar as per terms of its settlement.

"It is the second biosimilar launch in the US and each product was an early entrant in market. Importantly, management has reiterated its $1 billion biosimilar sales target for FY22."

Citi, too, has a buy call on the stock, with the same target price of Rs 350, saying it is the best Indian play on the global biosimilars opportunity.

"We expect meaningful pick-up in earnings momentum over the second half of FY20 and beyond," said the brokerage.

Dr Christiane Hamacher, CEO, Biocon Biologics, said, "We aspire to serve five million patients through our biosimilars portfolio and cross a revenue milestone of $1 billion by FY22."

"Ogivri is the second biosimilar from our partnered portfolio being commercialised by Mylan in the US. Last year, through the launch of Fulphila we helped in expanding patient access to biosimilar Pegfilgrastim," she added.

Biocon has announced that Siddharth Mittal has taken over as the Chief Executive Officer & Joint Managing Director of the company starting December 1 after the retirement of Arun Chandavarkar.

Here are some key events for the company in the last two months:

November 27: Biocon and Mylan's supplemental Biologics License Application (sBLA) for Pegfilgrastim drug substance to be manufactured at the company's new biologics manufacturing facility approved by the USFDA.

November 5: Biologics drug products facility in Bengaluru received Establishment Inspection Report (EIR) from USFDA.

October 23: A robust growth of 40 percent by biologics and 23 percent by small molecules, coupled with a steady performance by the research services business drove the consolidated revenue
for the September quarter to Rs 1,611 crore, reporting a growth of 17 percent YoY. Net profit declined 39 percent YoY, but profit adjusted for exceptional item increased 3 percent.

October 10: Subsidiaries of Biocon and Frankfurt-listed Evotec SE entered into a strategic licensing agreement for an early-stage, pre-clinical biosimilar asset.

October 3: Biocon and Mylan launched first insulin Glargine biosimilar, Semglee in Australia.

September 24: Biocon Biologics expanded its R&D footprint through acquisition research facility at TICEL Bio Park in Chennai.

The stock was quoting at Rs 287.40, up Rs 1.45, or 0.51 percent on the BSE, at 1342 hours.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.