Biocon share price slips after CLSA retains 'sell' call, expects stock to dip to Rs 250
Biocon Biologics, and Mylan have been informed by the US health regulator of deferred action on the biologics licence application for a biosimilar to drug Avastin, used to treat various types of cancers, Biocon said.
December 28, 2020 / 10:19 AM IST
Biocon share price was in the red on the morning of December 28 after research firm CLSA reiterated its "sell" rating on the stock with the target at Rs 250 per share.
The research firm is of the view that the pharma company's market share in Fulphila slipped to a September 2020 level of 7.5 percent, while that for November was mixed in the US, CNBC-TV18 reported.
Mylan gained 20 bps market share in Ogivri to reach 7.1 percent. CLSA believes that approval for Avastin in the US and insulin Aspart in Europe are key triggers.
The stock was trading at Rs 474.80, down Rs 7, or 1.45 percent, at 0957 hours. It has touched an intraday high of Rs 477.15 and an intraday low of Rs 463.05.
The biotechnology major said its arm, Biocon Biologics, and Mylan have been informed by the US health regulator of a deferred action on the biologics license application (BLA) for a biosimilar to drug Avastin, used in treat various types of cancers.
"To complete the application, the agency noted that an inspection of the manufacturing facility is required as a part of the standard review process. However, due to restrictions on travel related to COVID-19, the agency is unable to conduct an inspection during the current review cycle. We await the dates for the inspection," it added.
Sameet Chavan of Angel Broking has, however, recommended a "buy" with a target price at Rs 518. Looking at the upward sloping RSI-Smoothened oscillator, he expected the stock to do extremely well after entering uncharted territory, Chavan said.Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.