Biocon consortium wins 10-year Pertuzumab supply mandate for Brazil’s public health system

Biocon Limited has secured a 10-year supply contract for Pertuzumab in Brazil after its consortium with Bahiafarma and Bionovis received 100 per cent allocation under the country’s Productive Development Partnership, or PDP, programme.

The allocation gives the consortium exclusive access to Brazil’s public healthcare market for the product, a channel estimated to account for around 70 per cent of the country’s Pertuzumab demand. Financial terms of the arrangement have not been disclosed, although Biocon said it will receive milestone payments and a share of revenues generated through the PDP opportunity over the 10-year period.

Pertuzumab is a monoclonal antibody used in the treatment of HER2-positive breast cancer. The therapy is currently not manufactured locally in Brazil and represents a sizeable expenditure for the country’s Unified Health System, known as SUS. The PDP programme is designed to improve domestic access to strategic medicines while building local production capabilities.

Under the agreement, Pertuzumab manufacturing will be progressively localised in Brazil over the medium to long term. Bahiafarma, a state-linked pharmaceutical entity, and Bionovis will provide the local partnership and manufacturing framework, while Biocon brings its biologics development and supply capabilities.

The contract is commercially relevant because it provides a defined, long-duration market-access route in an oncology therapy area where public procurement and government healthcare channels are central to patient access. It also reduces the uncertainty typically associated with product-by-product tender participation, although actual revenue will depend on supply volumes, pricing, the pace of adoption and the localisation programme.

Shreehas Tambe, Chief Executive Officer and Managing Director of Biocon, said Brazil was an important market for the company and that the partnership would help expand access to affordable cancer treatment. He said the arrangement combines Biocon’s science and manufacturing capabilities with local expertise from Bahiafarma and Bionovis.

For Biocon, the development is consistent with its strategy of expanding biosimilars and complex biologic medicines through partnerships in emerging markets. The group reaches more than 120 countries and typically follows a collaborative business-to-business model in Latin America, the Middle East, North Africa and parts of Asia.

Biosimilars are now Biocon’s largest business. In FY26, the segment reported revenue of Rs 10,431 crore, accounting for roughly 60 per cent of the group’s consolidated operating revenue of Rs 16,927 crore. The biosimilars division reported an EBITDA margin of 26 per cent during the year, supported by operating leverage and a favourable geographic mix.

Management has also identified oncology products as a key part of its future biosimilars portfolio. Its investor presentation had listed Pertuzumab among its oncology assets alongside products such as trastuzumab, bevacizumab, denosumab and pembrolizumab. The Brazil agreement therefore adds a concrete market-access pathway for an asset that fits the company’s broader oncology pipeline.

The principal execution requirement will be the phased transfer and localisation of production in Brazil while maintaining quality, regulatory compliance and uninterrupted supply. Biologics manufacturing is capital-intensive and closely regulated, making technology transfer, local capacity creation and procurement execution important variables over the life of the contract.

Biocon shares closed at Rs 393.50 on September 7, down 0.94 per cent for the day. The stock was up 11.44 per cent over the previous year but remained below its 52-week high of Rs 440.70.

Disclaimer: The article is for informational purposes only and not investment advice.