Pharma major Biocon share price added over 2 percent in early trade on December 29 after the company expanded generic formulations portfolio with the launch of Tacrolimus capsules in the US.
Tacrolimus, a calcineurin inhibitor, is an immunosuppressant used in the treatment of organ transplant patients, which reduces the body’s ability to reject a transplanted organ, the company said in the release.
It has been particularly effective in treating patients of renal transplant for more than two decades.
The launch of Tacrolimus capsules, following approval from the US FDA in November 2020, underscores Biocon’s relentless pursuit of its mission to make affordable healthcare accessible, it added.
“The launch of Tacrolimus capsules in the US is another milestone for Biocon that reflects our commitment to continually evaluate and expand our portfolio of complex products to serve patients,” said Siddharth Mittal, Chief Executive Officer and Managing Director, Biocon.
Biocon is well placed to harness the opportunities emerging in global biosimilars space. Biocon’s biologics segment offers substantial growth opportunities driven by new launches (such as Semglee), healthy new product pipeline and increasing share of biosimilars in the overall market.
Further, the expansion into other geographies would compliment the growth. Expected traction in the biosimilars in the US markets could also be a key growth driver going ahead. The generics business too is expected to grow at a healthy pace backed by improved momentum in existing products and new product launches.
Recent launch – Tacrolimus capsules (immunosuppressant) has $300 million market size which is material and could aid the sales growth. At CMP, the stock is trading at P/E multiple of 35.5x /26.5x its FY2022/FY2023 earnings, which is lower than the last 5 years’ average PE multiple. We retain buy recommendation on the stock with a revised price target of Rs 520.
The research house has maintained an equal-weight call with a target at Rs 430 per share. USFDA has issued a deferred action on the biologics application for bAvastin and as a standard review process, FDA must conduct an inspection of the concerned manufacturing unit. This has been put on hold, due to the COVID19-led travel restrictions.
The USFDA had earlier provided BSUFA goal date of December 27, 2020, while two biosimilars have already been launched in the US market. Another 3-4 players are in the regulatory queue & can get approved over 1- 2 years, reported CNBC-TV18.
At 09:32 hrs Biocon was quoting at Rs 470.70, up Rs 4.90, or 1.05 percent on the BSE.
The share touched its 52-week high Rs 487.70 and 52-week low Rs 235.80 on 23 December 2020 and 19 March 2020, respectively.
Currently, it is trading 3.49 percent below its 52-week high and 99.62 percent above its 52-week low.