However, the stock could not hold on to the gains and fell in the second half of the day’s trade. The stock ended the session at Rs 607.70 on BSE, down 7.09%.
The stock of Biocon gained 6.25% and hit a 52-week high intraday on Tuesday after the company and its partner Mylan received approval for their biosimilar of a cancer medicine pegfilgrastim from the US Food and Drug Administration (FDA.
However, the stock could not hold on to the gains and fell in the second half of the day’s trade. The stock ended the session at Rs 607.70 on BSE, down 7.09%. The drug, which will be sold under the brand name Fulphila have been approved to reduce the duration of fever or other signs of infection with a low count of neutrophils, a type of white blood cells in patients treated with chemotherapy in certain types of cancer.
Fulphila is the second biosimilar from Mylan and Biocon’s joint portfolio approved in the US, the company said in an exchange filing. Market Participants said that with this US FDA approval Biocon has the first mover advantage. “This is the first biosimilar which has got the US FDA approval in the Indian space.
Till today nobody has been venturing into this and getting an approval itself is a big positive,” an analyst who tracks Biocon, said on the condition of anonymity. Regarding the stock’s slide in the second half of Tuesday’s trade market participants blamed the general negative sentiment in the market and profit booking on Biocon.