Biocon Gains 2% After Securing 10-Year Pertuzumab Supply Contract in Brazil

On Tuesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 106.25 points (0.45 per cent) to 23,672.90. Amid the market movement, Biocon share price rose 1.42 per cent to Rs 396.95 after the company announced a partnership agreement with Bahiafarma and Bionovis for Pertuzumab in Brazil under the country's Productive Development Partnership (PDP) programme.

The consortium comprising Biocon, Bahiafarma and Bionovis has received 100% allocation under Brazil's 10-year PDP programme for Pertuzumab, a monoclonal antibody used in the treatment of HER2-positive breast cancer.

Biocon Secures 10-Year Brazil Supply Opportunity

Under the PDP programme, the consortium will have exclusive access to Brazil's public healthcare market for Pertuzumab. This market accounts for approximately 70% of the country's demand for the therapy.

The arrangement is aimed at supporting the long-term adoption of Biocon's Pertuzumab within Brazil's public oncology network. Biocon will receive milestone payments as well as a share of revenues generated from the opportunity over the 10-year period.

As part of the PDP framework, the product is also expected to undergo phased localisation in Brazil over the mid to long term.

Partnership Targets Localisation of Complex Biologic

Pertuzumab is currently not manufactured locally in Brazil and represents a significant expenditure for the country's Unified Health System (SUS).

The partnership brings together Biocon's capabilities with Bahiafarma, a public pharmaceutical laboratory of the State of Bahia, and Bionovis, a Brazilian biotechnology company focused on complex biological medicines and biosimilars.

Bahiafarma is involved in pharmaceutical research, technology development, innovation and the production and supply of medicines and other healthcare products for Brazil's SUS. Bionovis focuses on developing, manufacturing and commercialising complex biological medicines and biosimilars, with an emphasis on technology transfer and local biopharmaceutical manufacturing.
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Biocon to Earn Milestone Payments and Revenue Share

The 10-year agreement provides Biocon with two identified financial components from the Brazil PDP opportunity, comprising milestone payments and a share of revenues generated over the programme period. The company said the partnership is intended to support wider access to Pertuzumab for patients with HER2-positive breast cancer while creating a pathway towards local production of the therapy in Brazil.

The agreement also marks an expansion of Biocon's presence in Brazil through a long-term public healthcare programme involving local partners and phased localisation of the product.

About the Company

Biocon is a Bengaluru-headquartered global biopharmaceutical company focused on biosimilars and generic formulations. The company operates across therapy areas including diabetes, oncology, obesity, cardiovascular diseases, immunology, ophthalmology and bone health. Biocon has commercialised 12 biosimilar products and more than 30 generic formulations globally, alongside a research and development pipeline comprising more than 20 biosimilar assets, GLP-1 peptides and other complex generics.

The company operates in more than 120 countries through seven manufacturing sites, three R&D sites and 18 offices worldwide, supported by a workforce of more than 9,500 employees.

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