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Shares of Biocon jumped as the company’s partner Mylan and FKB have signed a deal for arthritis drug in the European Union. Biocon stock rose as much as 2.8 per cent to Rs 629.85, highest in over a month.
Mylan NV had said on Wednesday it would partner with Fujifilm Kyowa Kirin Biologics (FKB) to commercialise FKB’s biosimilar for rheumatoid arthritis drug Humira in the European Union.
Biocon is Mylan’s original partner for adalimumab, sold under the trade name Humira, the world’s top-selling medicine. FKB’s product is at an advanced stage of review and could potentially get approval in Europe in H2, Biocon says.
Biocon will retain its economic interest in the arrangement with Mylan. Mylan and Biocon are giving away some share in their profits to FKB in return for the opportunity to launch early and potentially secure higher profits than they would have otherwise, according to Citi analysts.
Citi has kept Biocon's 'buy' rating and a price target of Rs 690. Nine of 17 brokerages have rated Biocon as “buy” or higher, three ”hold” and five “sell” or lower; their median price target is Rs 600, according to Thomson Reuters Eikon data.
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