Biocon share price slips over 6% after CFO resigns

At 12.35 am, the scrip was trading 5.9% lower at Rs 251 on BSE. The stock has also plunged 23% in the last two years and 37% in the past three years.

Meanwhile, the company also announced that its subsidiary Biocon Biologics' India-branded formulation business was acquired by , a chronic therapy-focused drug firm, for Rs 1,242 crore.

This acquired business includes portfolios in insulin, oncology, and critical care. “Biocon Biologics has signed a 10-year agreement with Eris as part of this deal. The transaction is expected to take effect on April 1, 2024, subject to customary closing conditions,” the firm said.

Biocon Biologics’ India branded formulation business has of Rs 360 crore, which represents a valuation of 3.4x of revenues.

Of the Rs 360 crore, two products Basalog and Insugen contribute Rs 100 crore each. Oncology and critical care portfolios contribute 80 crore each. The oncology includes novel biologic drug nimotuzumab, and biosimilars of trastuzumab and bevacizumab.

The transaction is expected to come into effect before April 15, 2024, subject to customary closing conditions.

As per Trendlyne data, the average target price of Biocon is Rs 283, which shows an upside of 13% from the current market prices. The consensus recommendation from 19 analysts for the stock is a 'Hold'.

In terms of technicals, the (RSI) of the stock stands at 46.3, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 0.8, indicating low in a year. Biocon is trading below 20-day, 50-day, 100-day, and 200-day SMAs.

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