Biocon shares up 3% after US FDA nod for key cancer drugs

Shares of Biocon Ltd today rallied 3% to a day’s high of Rs 324.50 on the BSE on Wednesday after the company’s wholly owned subsidiary, Biocon Pharma, received final approvals from the U.S. Food and Drug Administration (FDA) for two key cancer drugs—Lenalidomide and Dasatinib.

Lenalidomide, approved in multiple strengths, is used in the treatment of multiple myeloma and certain types of lymphoma and anaemia related to myelodysplastic syndromes. Dasatinib, available in six dosage forms, is used to treat Philadelphia chromosome-positive chronic myeloid leukaemia (Ph+CML) and acute lymphoblastic leukaemia (Ph+ALL). The approvals strengthen Biocon’s complex generics portfolio and enhance its presence in the U.S. oncology market.

The company also received tentative FDA approval for its ANDA for Rivaroxaban, an anticoagulant used to treat deep vein thrombosis and pulmonary embolism and to reduce stroke risk in nonvalvular atrial fibrillation.

Biocon’s stock closed 3.3% lower on Tuesday at Rs 314.80 on the BSE. The stock has declined 17.03% over the past six months but remains up 12.87% over the last year. In the past week, shares have dropped nearly 2%.

Bengaluru-based Biocon Ltd had reported a profit after tax (PAT) of Rs 25 crore for the third quarter ended December 2024, marking a sharp 96% decline from Rs 660 crore in the same period last year.

After accounting for exceptional items, the company’s adjusted profit stood at Rs 13 crore. Biocon attributed last year’s higher profitability to a one-time gain from Bicara and proceeds from Biocon Biologics’ partial divestment of the BFI business. Meanwhile, consolidated revenue rose 7% on a like-for-like basis to Rs 3,856 crore.Analysts at Trendlyne peg the average target price for Biocon at Rs 383 per share, suggesting a potential upside of 22% from current levels.Also read | Can Zomato shares hit Rs 310? Bernstein sees 35% upside despite quick commerce losses

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