Shares of a leading pharmaceutical company rose nearly 2 percent in today’s trading session after the firm announced it had secured regulatory approval for its new diabetes drug. The development marks a significant milestone in the company’s efforts to expand its portfolio in the fast-growing diabetes care segment.
During Tuesday’s trading session, the shares of Biocon Ltd reached an intraday high of Rs.340.00 per share, rising 1.8 percent slightly from the previous close of Rs.334.00 per share. The shares have retreated from the peak and are trading at Rs.335.35 apiece.
Drug Approval
Biocon Limited, a global biopharmaceutical company based in Bengaluru, has announced that it received regulatory approval in India for its diabetes drug Liraglutide. The approval includes both the active ingredient and the finished product, which is a 6 mg/ml solution available in pre-filled pens and cartridges. Biocon’s subsidiary, Biocon Pharma Limited, secured the clearance for the drug product.
This generic version of Victoza is used to treat Type 2 Diabetes Mellitus in adults, adolescents, and children aged 10 years and older. It is meant to be used along with a proper diet and regular exercise to help manage blood sugar levels.
The approval was granted by the Central Drugs Standard Control Organisation (CDSCO) through the recently introduced 101 route, which allows recognition of approvals from well-established international regulatory authorities.
Management Commentary
Siddharth Mittal, the Chief Executive Officer and Managing Director of Biocon Ltd, emphasized the importance of the recent regulatory approval for Liraglutide in India. “The approval of our first vertically integrated GLP-1 in India, Liraglutide, another is significant step forward in expanding access of this product to patients suffering from diabetes. India has one of the highest number of people with diabetes globally, with estimates exceeding 77 million cases, and expected to rise further. The approval enables us to address a critical need by making this drug available and aligns with Biocon’s mission to provide affordable, lifesaving medications to those who need it the most. We are now gearing up to launch the product expeditiously through our commercialization partners in India,” he said.
Business Highlights
Biocon Limited, with a legacy spanning over 46 years, has established a strong global presence across 120+ countries and holds a market capitalization of USD 4.7 billion. The company has received over 80 cGMP approvals, owns 1,700+ patents, and operates through 9 manufacturing facilities. Notably, it serves 14 of the top 20 global pharmaceutical companies through its diverse service offerings.
Biocon has incubated four core businesses: Biocon Biologics (biosimilars, contributing 58 percent of FY25 revenue), Biocon Generics (ensuring affordable access, contributing 19 percent), Syngene (research services, 23 percent, with a market cap of USD 2.9 billion), and Bicara Therapeutics (focused on novel biologics, listed on NASDAQ with a valuation of USD 1.3 billion). This diversified structure strengthens Biocon’s innovation-driven growth strategy.
Financial Performance
According to its latest financial results, Biocon Ltd reported consolidated revenue of Rs.4,417 crores in Q4 FY25, marking a 12.7 percent year-on-year increase from Rs.3,917 crores in Q4 FY24 and a 15.6 percent rise compared to Rs.3,821 crores in Q3 FY25.
The company’s net profit for Q4 FY25 stood at Rs.459 crores, up 105.8 percent from Rs.223 crores in the same quarter last year and a significant 466.6 percent higher than Rs.81 crores reported in Q3 FY25.
The company has a Return on Capital Employed (ROCE) of 6.45 percent and a Return on Equity (ROE) of 4.68 percent. Its Price-to-Earnings (P/E) ratio stands at 42.85, higher than the industry average of 32.05. Furthermore, the company maintains a current ratio of 1.83, a debt-to-equity ratio of 0.85, and an Earnings Per Share (EPS) of Rs.7.83.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
