Biocon gains over 5%: Why is the pharma stock surging?

The stock soared as much as 5.45% to ₹323 per share on the National Stock Exchange (NSE). At 2:19 pm, it was up 3% to ₹315.65 apiece.

In an exchange filing on April 10, the company informed that its subsidiary Biocon Biologics has received a nod from the US FDA to market a cancer treatment biosimilar product.

Jobevne (bevacizumab-nwgd), a recombinant humanised monoclonal antibody, is used in the treatment of different types of cancer. It is a biosimilar to the reference product Avastin (bevacizumab).

Jobevne, a vascular endothelial growth factor (VEGF) inhibitor, binds with VEGF and obstructs the interaction with its receptors to stop angiogenesis, fighting cancer by restricting blood supply to the tumour.

Shreehas Tambe, Biocon Biologics's CEO and Managing Director, said, "The US FDA approval of JOBEVNE (bevacizumab-nwgd) is a significant milestone—our seventh biosimilar approved in the US and a strong addition to our robust oncology portfolio. It underscores the depth of our scientific expertise and commitment to expanding access to high-quality, affordable biologics. We look forward to working with all stakeholders to bring more treatment options to patients."

In 2023, sales of bevacizumab were around $2 billion in the United States.

In another regulatory filing, the company said its wholly-owned unit Biocon Pharma has received the green light from the US FDA for its Abbreviated New Drug Application (ANDA) for Everolimus tablets in strengths of 0.25 mg, 0.5 mg, 0.75 mg and 1 mg.

"Everolimus is a prescription medication that is indicated for the prophylaxis of organ rejection in adult patients, and in kidney and liver transplantation. The approval will further strengthen Biocon’s portfolio of vertically integrated, complex drug products," the firm said.