Biocon Share Price: Shares of pharma sector company Biocon Limited rose sharply on Tuesday, January 7. Shares jumped more than 8 per cent to Rs 387.95 in early trade. This rise was mainly due to two news. The first news is that one of its psoriasis medicines has been approved by the Drug Authority of Japan. The second reason is that leading brokerage Jefferies has increased both the rating and target price of its shares.
Biocon Limited said in the information sent to the stock market that its associate Biocon Biologics has received approval from the Drug Authority of Japan for Holi Ek drug used in the treatment of psoriasis. The company said that Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) has approved Ustekinumab BS subcutaneous injection, which is a biosimilar to the reference product called Stelara.
Use of Ustekinumab
This drug has been manufactured by Biocon Biologics and will be launched in Japan in collaboration with the company’s exclusive commercial partner Yoshindo Inc. Ustekinumab, a monoclonal antibody, is approved for the treatment of psoriasis vulgaris and psoriatic arthritis (PsA).
Licensing and partnerships
Biocon Biologics had entered into an agreement and licensing agreement with Janssen Biotech Inc and Janssen Sciences Ireland, besides Johnson & Johnson, to sell ustekinumab in Japan after receiving regulatory approval in August last year. Under this agreement, the company has received permission to start commercial use of this medicine in Japan.
Jefferies increased the target price
Meanwhile, Jefferies on Tuesday increased the rating of Biocon’s stock from ‘underperform’ to ‘hold’. Also, the target price of the company has been increased by about 43 percent to Rs 400 from the earlier Rs 280. This shows the possibility of further rise of about 12 percent in this stock from Monday’s closing price. Jefferies said the growth prospects of the company’s biosimilar business have improved.
At the time of writing at 12 noon, Biocon shares were trading at around Rs 837 on NSE, up 8.34 per cent. In the last one year, this stock has given returns of about 38 percent to its investors.
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