Morgan Stanley overweight on Biocon, sees significant upside from its biosimilar pipeline

Global research firm Morgan Stanley has initiated an overweight call on Biocon with a target at Rs 785 per share. The house is of the view that H2 seems to be strong for the company and Mylan with monetisation prospects of biosimilar pipeline improving. The firm expects significant upside from its biosimilar pipeline in 2019-2021.

Biocon expects its partner Mylan to launch insulin glargine across various markets in Europe in the second half of 2018. The company didn't specify the Australian launch but said it will happen later this year.

Siddharth Mittal, President - Finance of Biocon said that the approval of Mylan and Biocon’s biosimilar Insulin Glargine, Semglee, by the European Commission is significant as it is the first biosimilar approval in EU from our joint portfolio. It comes close on the heels of Ogivri, our biosimilar Trastuzumab, being the first biosimilar from Mylan and Biocon’s joint portfolio to be approved in the US.

Also, Biocon partner Mylan has entered into a pact with Fujifilm to commercialise Humira biosimilar in Europe. Mylan said its partner Biocon will receive economic benefit through this collaboration.