Dynamic Levels

Biocon (Buy)

CMP: ₹627.25

Target: ₹750

Biocon is India’s largest biotech company run by Kiran Mazumder Shaw. It has presence in more than 100 countries. Biocon has been driven by its strategy to provide affordable access to advanced biopharmaceuticals for global patient populations. It aspires to become a $1-billion company by FY 18.

Biocon is rated 4th in current valuation category among its peers.

The global market opportunity for biosimilars is estimated to reach $24 billion in 2019. The Indian pharmaceutical market size is expected to grow to $100 billion by 2025, driven by increasing consumer spending, rapid urbanisation and raising healthcare insurance, among others. Big Pharma is beginning to realize that global priorities are shifting from providing exclusive and expensive drugs to more affordable drugs which can help enhance access. The opportunities are in the fast-growing emerging markets, where the old business model of expensive medicines targeted at niche populations of affluent patients will not work. Biocon’s entry into Japan will offer business worth $8-10 billion from FY17.

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