This Pharma Stock Declines 4.86 per cent; Board Approves Rs 570 Crore Fundraise, Know the Stock Outlook Here

DSIJ Intelligence-9 / 27 Jan 2025/ Categories: Mindshare, Trending

This Pharma Stock Declines 4.86 per cent; Board Approves Rs 570 Crore Fundraise, Know the Stock Outlook Here

The Board of Directors approved the issuance of commercial papers worth Rs 570 crore on a private placement basis

Biocon Ltd’s share price fell 4.86 per cent on January 27, 2025, hitting a day’s low of Rs 369.40 on the NSE, while the NIFTY Pharma index declined by 3 per cent. Despite today’s dip, Biocon’s stock has risen 42.43 per cent year-to-date, outperforming NIFTY Pharma, which climbed 20.73 per cent during the same period.

Key Announcements in Exchange Filing

In an exchange filing today, Biocon Limited made several significant announcements:

  1. Issuance of Commercial Papers:
    The Board of Directors approved the issuance of commercial papers worth Rs 570 crore on a private placement basis. This decision was finalized during a brief board meeting held on January 27, 2025.
  2. Improved ESG Score:
    Biocon reported an improved S&P Global ESG Score of 69 for 2024, up from 63 in 2023, placing it in the 98th percentile among its global biotechnology peers. The score breakdown is as follows:
    • Environmental Dimension: 76
    • Social Dimension: 74
    • Governance & Economic Dimension: 62

Additionally, Biocon Biologics Limited, a subsidiary of Biocon, participated in the ESG assessment for the first time and achieved a score of 53.

Credit Rating Updates

India Ratings and Research (Ind-Ra) affirmed the ratings for Biocon Limited’s debt instruments:

  • Non-Convertible Debentures (NCDs): IND AA+/Stable
  • Proposed Commercial Papers: IND A1+
  • External Commercial Borrowings (ECBs): IND AA+/Stable

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Positive Outlook for Biocon

Biocon is well-positioned for growth, bolstered by recent FDA clearance for its Malaysia insulin manufacturing facility. This development resolves a long-standing regulatory hurdle and clears the path for the U.S. launch of insulin aspart. As the exclusive biosimilar filer for insulin aspart, Biocon stands to benefit significantly from a potential total addressable market of approximately $550 million.

At its current price of Rs 370 per share, Biocon has a market capitalization of Rs 44,470 crore, a price-to-earnings (P/E) ratio of 30.8x, and a price-to-sales ratio of 3x.

Biocon’s strategic initiatives, strong ESG performance, and key regulatory clearances underscore its potential for sustainable growth. However, near-term market fluctuations and broader sector trends may continue to influence stock performance.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice