Biocon share price gained nearly 3 per cent intraday on Bombay Stock Exchange (BSE) on Tuesday after the biopharma company announced that it has signed pact with Libbs Farmaceutica to launch generic formulations in Brazil.
Buoyed by the development, Biocon shares rose as much as 2.71 per cent to hit intraday high of Rs 406 on the BSE. The Kiran Mazumdar-Shaw-led company shares opened higher at Rs 400 against previous close price of Rs 395.25 on the BSE. On the volume front, 0.81 lakh shares changed hands over the counter as compared to two-week average volume of 2.93 lakh shares. The market cap of the company surged to Rs 48,438 crore.
In a similar trend, shares of Bioncon were trading 2.09 per cent higher at Rs 403.50 on the National Stock Exchange (NSE), against previous close price of Rs 395.25. The stock hit a high and low of Rs 406.00 and Rs 399.05, respectively.
Meanwhile, the BSE Sensex was trading 1,039 points, or 2.1 per cent, higher at 50,047, while NSE Nifty gained 311.2 points, or 2.15 per cent, to trade at 14,818.
Biocon Pharma, a wholly owned subsidiary of Biocon, and Libbs Farmaceutica, a leading pharmaceuticals company in Brazil, to launch generic drugs in Brazil, the world's sixth most populous country. This partnership, which marks the entry of Biocon's generic formulations into Latin America, builds upon a successful association with Libbs, which began in 2017 to launch biosimilar Trastuzumab in Brazil, the company said.
As part of the out-licensing deal with Libbs, Biocon Pharma will be responsible for drug development and manufacturing, while Libbs will leverage its deep expertise and reach in Brazil to import, distribute and market, subject to approvals from the Brazilian health regulatory agency, ANVISA.
Siddharth Mittal, Chief Executive Officer and Managing Director, Biocon Ltd, said, "Expanding our association with Libbs Farmaceutica, a trusted partner, to our generic formulations, will help us establish a firm footing in Latin America, starting with Brazil. We remain committed to expanding our global presence with high-quality and affordable medicines and invest in strengthening capabilities that enableus to serve patients globally."