Biocon surges 15% on USFDA approval

Shares of Biocon settled with gains of 15% on the bourses, after the company said it has received regulatory approval to market a biosimilar of cancer drug Herceptin in the US, following which the market capitalisation of the company improved by Rs 4,020 crore.

During the day, the shares of the company had surged 16.33% to an intra-day high of Rs 519.50, which was also its 52-week high level.

The stock however pared some gains and settled at Rs 513.55, up 15% on the BSE.

Following the uptick on the counter, the market capitalisation of the company improved by Rs 4,020 crore to Rs 30,813.00 crore at the end of  Monday's  trading session.

On the NSE, the stock of the company opened at Rs 491.95, then touched a 52-week high of Rs 519.50 and finally ended the day at Rs 517, up 15.60%.

The US health regulator has approved Mylan NV's biosimilar Ogivri, co-developed with Biocon, for the treatment of certain breast and stomach cancers, a company statement said.

"Biocon and Mylan have a shared commitment to enhance access to cutting-edge bio-therapeutics and this approval will enable us to provide an affordable alternative for cancer care that will address the unmet needs of patients in the US," Biocon CMD Kiran Mazumdar-Shaw said.

Mylan and Biocon's biosimilar for Herceptin is also under review by regulatory authorities in Australia, Canada, Europe and several additional markets, the statement said.

It is already approved in 19 countries around the world, including India, thus providing increased access to this more affordable biologic for cancer patients, it added.

Mylan CEO Heather Bresch said: "The approval of Ogivri represents a monumental achievement for Mylan to increase patient access to biosimilars and deliver significant savings to the US healthcare system."