Biocon shares rally nearly 6% after unit receives USFDA nod for cancer drug

Shares of Biocon rallied 5.6% to an intraday high of Rs 322.25 on the BSE on Friday after its subsidiary, Biocon Biologics, announced it had received approval from the U.S. Food and Drug Administration (USFDA) to market Jobevne (bevacizumab-nwgd), a biosimilar to Avastin, for the intravenous treatment of various cancers.

Jobevne is a recombinant humanized monoclonal antibody that functions as a VEGF inhibitor, helping to combat tumors by blocking blood vessel growth.

This marks Biocon’s seventh biosimilar approved in the U.S., further strengthening its oncology portfolio. The company already markets the drug in Europe and Canada under the brand name Abeymy.

CEO and MD Shreehas Tambe described the approval as a significant milestone that reinforces Biocon’s commitment to expanding access to treatment.

Bevacizumab sales in the U.S. reached approximately $2 billion in 2023.

Shares of the pharma company have risen 10% in the past year but underperformed its sector by 1.59%. Over the last three years, the stock has declined by 14%.