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Should you buy Biocon shares as USFDA gives approval to diabetes drug?
At 09:30 AM, Biocon shares were trading at ₹398.15, up by 1.97 per cent on the National Stock Exchange. In comparison, the Nifty50 witnessed a downtrend, trading at 25,140.05, down by 0.22 per cent or 55 points. So far this calendar year, shares of the biopharma company have experienced a decent rise of 6.8 per cent. Around 7.2 million shares have changed hands on the counter, cumulatively, on the NSE and BSE at the time of writing this report.
Kirsty has been available in the European Union (EU) and Canada since 2022. With the latest FDA approval, it becomes the first and only interchangeable biosimilar to NovoLog in the US. According to IQVIA data for 2024, Insulin Aspart US sales stood at $1.9 billion. This development marks Biocon Biologics' continued expansion spree in the diabetes portfolio.
About Kirsty
Kirsty is a rapid-acting insulin used to manage blood sugar levels in adults and children with diabetes. The insulin will be available in a prefilled pen for individual use and a multi-dose vial for both subcutaneous and intravenous usage.
'The FDA approval of Kirsty, the first and only interchangeable biosimilar rapid-acting Insulin Aspart in the US, is a significant step forward in our efforts to make insulin more accessible and affordable, said Shreehas Tambe, CEO and managing director, Biocon Biologics. "With Kirsty, we are expanding treatment choices for people living with diabetes and advancing our ambition to be a global leader in addressing unmet needs in diabetes care,' he added.
Brokerage View- WealthMills Securities
On an annual basis, Biocon shares have experienced a healthy double-digit rise of over 11 per cent on the bourses. Kranthi Bathini, director of equity strategy at WealthMills Securities, has maintained a 'Hold' rating on the stock. Biocon's future revenue growth will likely come from two main sources: its portfolio of biosimilars and new molecular entity.
The company is also planning to merge with its subsidiary firm, Biocon Biologics, to form business synergies. Just last month, the biopharma company raised ₹4,500 crore via a qualified institutional placement (QIP) issue.
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