Shares of Biocon rose over 2% in the early trade on Tuesday after its subsidiary signed an immunity jab distribution deal with Sandoz, a Swiss-German company that focuses on generic pharmaceuticals and biosimilars. The pharma heavyweight has maintained an uptrend for three sessions and gained nearly 4% during the same period.
Early today, Biocon shares opened marginally higher at ₹247.65 against the previous closing price of ₹246.20 on the BSE. In the first two hours of trade so far, the biopharma stock gained as much as 2.4% to ₹252.05.
At the time of reporting, shares of Biocon were up 1.75% at ₹250.50, while the market capitalisation stood at ₹30,087 crore.
Biocon shares touched its 52-week high of ₹279.95 on September 15, 2023, and a 52-week low of ₹191.60 on March 21, 2023. The larecap stock has given a negative return of 5.5% in a year, while it fell nearly 5% in the calendar year 2023. However, the counter rebounded 4.5% in six months, whereas it gained 7.5% in a month.
In a post market release on Friday, Biocon said its global biosimilars subsidiary, Biocon Biologics Ltd (BBL) signed a distribution agreement with Sandoz for an immunity-linked injection in Japan. BBL has been granted the exclusive rights to promote, sell, and distribute “Adalimumab BS for subcutaneous injection (FKB)” in Japan. The injection is used for treatment of immune-related diseases such as rheumatoid arthritis, psoriasis vulgaris, ankylosing spondylitis, Crohn's disease, and ulcerative colitis.
“Based on this Agreement, Viatris has completed marketing and promotion of the product as of December 15, 2023, but will continue to provide transition support until Sandoz will gradually assume responsibilities for the product starting February 15, 2024,” Biocon said in the release dated December 22.
As per the release, Biocon Biologics has acquired the global biosimilars portfolio of Viatris including Adalimumab. Fujifilm Kyowa Kirin Biologics Co. Ltd., the developer of the drug, has concluded an exclusive global marketing license agreement with Biocon Biologics Ltd affiliate. Fujifilm Kyowa is a marketing authorisation holder in Japan.
Adalimumab BS for subcutaneous injection (FKB) is a biosimilar of Humira (generic name: adalimumab (genetical recombination)) and is used for immune-related diseases such as rheumatoid arthritis, psoriasis vulgaris, ankylosing spondylitis, Crohn's disease, and ulcerative colitis.
“Sandoz is committed to further strengthening its product pipeline to drive sustainable business growth. The transfer of the distribution rights of this product is part of this strategy, and its addition to the product portfolio will strengthen Sandoz's immunology and biosimilar portfolio,” the release noted.
Since launching the first biosimilar in Europe in 2006, Swiss-German firm Sandoz has helped to create early and expanded patient access to life-altering medicines while increasing healthcare savings and creating competition that fuels further innovation. Sandoz aims to leverage its global track record and strengths to deliver high quality medicines to the people of Japan promptly to ensure the sustainability of the Japanese healthcare system.
Recently, Biocon Biologics completed integration of the acquired Viatris’ biosimilars business in 120 countries ahead of schedule, marking a significant milestone in the company’s journey as a fully integrated, global biosimilars enterprise. At a global level, Biocon Biologics has a pipeline of 20 assets for diabetology, oncology, immunology, and ophthalmolog, serving over 5.7 million patients annually.
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