Biocon Shares Surge 3% After USFDA Approval for Key Cancer Drugs
Biocon : Bengaluru, March 5, 2025: Shares of Biocon Limited witnessed a 3.1% surge in early trade on the Bombay Stock Exchange (BSE) after its subsidiary, Biocon Pharma Limited, received final approval from the U.S. Food and Drug Administration (USFDA) for its key cancer treatment drugs.
The stock hit an intraday high of ₹324.90, up from its previous close of ₹314.80, marking a positive sentiment among investors. The rally reflects growing confidence in Biocon’s expanding pharmaceutical portfolio and its strategic foothold in the US market.
USFDA Approvals Boost Market Confidence
Biocon Pharma Limited secured final approvals from the USFDA for the following drugs:
- Lenalidomide Capsules – Used in the treatment of multiple myeloma, mantle cell lymphoma, follicular lymphoma, marginal zone lymphoma, and anemia in myelodysplastic syndromes (MDS).
- Dasatinib Tablets – A critical medication for treating chronic myeloid leukemia (CML) and acute lymphoblastic leukemia (ALL) by inhibiting cancer cell growth.
Additionally, Biocon Pharma received a tentative approval for Rivaroxaban Tablets USP, an anticoagulant used to treat deep vein thrombosis (DVT) and pulmonary embolism (PE) and to reduce stroke risk in patients with nonvalvular atrial fibrillation.
These approvals solidify Biocon’s position in the global pharmaceutical market, enhancing its complex drug portfolio and boosting revenue potential.
Strong Financial Performance & Growth Outlook
Biocon reported a revenue of ₹3,821 crore in Q3 FY25, reflecting a 6.43% growth from the previous quarter’s ₹3,590 crore. The company has maintained a healthy operating profit margin of 20%. Notably, its net profit skyrocketed by over 200% to ₹81 crore in Q3 FY25 compared to ₹27 crore in Q2 FY25.
However, on a year-on-year (YoY) basis, the consolidated net profit dropped significantly to ₹25.1 crore in Q3 FY25 from ₹660 crore in Q3 FY24, while revenue declined from ₹3,954 crore to ₹3,821 crore.
| Financial Metrics | Q3 FY25 | Q3 FY24 | Q2 FY25 |
|---|---|---|---|
| Revenue (₹ Cr.) | 3,821 | 3,954 | 3,590 |
| Net Profit (₹ Cr.) | 25.1 | 660 | 81 |
| Operating Profit Margin | 20% | – | – |
Future Plans & Strategic Growth
Biocon is set to list its Biosimilar business by March 2026, further strengthening its leadership in the pharmaceutical sector. The company plans to launch five new biosimilars in the US by April 2025, targeting a double-digit market share.
With strategic partnerships and an emphasis on biosimilars, Biocon aims to become a top-three global biosimilar company.
About Biocon Limited
Founded in 1978 and headquartered in Bengaluru, India, Biocon Limited is a leading biopharmaceutical company engaged in the manufacture and sale of generic formulations, novel biologics, and research services. It operates across India, Brazil, Singapore, and other international markets, focusing on oncology, diabetes, immunosuppressants, and multiple sclerosis drugs.
Stock Performance & Key Financial Ratios
Biocon’s stock performance and valuation metrics remain strong, with steady growth potential:
| Metric | Value |
|---|---|
| Market Cap | ₹38,929 Cr. |
| Current Price | ₹324 |
| 52-Week High/Low | ₹405 / ₹244 |
| Stock P/E | 47.3 |
| Book Value | ₹175 |
| Dividend Yield | 0.15% |
| ROCE (Return on Capital Employed) | 5.96% |
| ROE (Return on Equity) | 5.25% |
| Debt-to-Equity Ratio | 0.80 |
| Pledged Percentage | 0.00% |
| Industry P/E | 28.5 |
| EPS (Earnings Per Share) | ₹6.70 |
| Intrinsic Value | ₹165 |
| PEG Ratio | 8.05 |
| Debt | ₹16,771 Cr. |
| Free Cash Flow (3 Years) | ₹429 Cr. |
| Free Cash Flow (5 Years) | ₹ -694 Cr. |
Conclusion
Biocon’s USFDA approvals mark a significant milestone, reinforcing its position in the global pharmaceutical market. The company’s expansion plans, strong financials, and promising pipeline of biosimilars are expected to drive long-term growth.
With a clear roadmap for future expansion and a strategic focus on biosimilars, Biocon remains a strong contender in the pharmaceutical industry, attracting investor confidence and market momentum.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.