Biocon shares in focus as it opens manufacturing facility in New Jersey

Shares of Biocon Limited are in focus on Thursday as the global biopharmaceutical company inaugurated its first US manufacturing facility in Cranbury, New Jersey, through its wholly owned subsidiary, Biocon Generics Inc (BGI). 

Biocon shares are up 7 per cent in the past one month, which helped the stock trim its year-to-date loses to 1 per cent. 

Biocon acquired the Oral Solid Dosage (OSD) facility from Eywa Pharma Inc in 2023 and has since invested over $30 million to transform it into a plant with an annual capacity of 2 billion tablets. A few products have already been commercialised, with more in the pipeline, Biocon noted in a filing to stock exchanges.  

The investment strengthens Biocon’s supply chain, diversifies its manufacturing base, and accelerates its global expansion.

Kiran Mazumdar-Shaw said, “Biocon’s first U.S. FDA-approved formulations facility in New Jersey marks a new chapter in our global journey. This milestone reaffirms our purpose to serve patients wherever they are and reflects our long-term commitment to deeper engagement with healthcare providers, innovators, and communities.”

Siddharth Mittal, CEO & MD, Biocon Ltd, added, “This strategic investment brings us closer to patients and partners in the U.S. market, enabling us to deliver high-quality, affordable medicines more efficiently while ensuring supply chain resilience.”

Biocon’s Q1FY26 revenue and Ebitda missed had consensus estimates by 2 per cent and 11 per cent due to weakness in the generics segment. Biosimilar sales were up 1 oer cent QoQ while generics/CRDMO segments were up 6 per cent and 11 per cent YoY, respectively.

Analysts noted Biocon's market share gained in key products in the biosimilars segment, margins were steady and launches were reassuring. That said, execution would be key to unlock high growth, they said. 

Furthermore, the generics segment stays a drag while healthy and consistent margin delivery remains to be seen amid elevated costs from new facilities. Debt levels continue to stay a concern, Nuvama said in an August note.