The recent clearances to two of Biocon Biologics’ biosimilars plants, in India and in Malaysia, have cleared some of the overhang on its parent Biocon Ltd’s stock.
Delays in securing product approval in the US due to covid-19 and high capital expenditures, however, could keep a lid on the stock’s performance, which surged to an all-time high in end-April.
Biocon’s insulin glargine launch in the US could be delayed due to the surge in covid-19 cases. It has been expecting an approval in the second half of 2020.
In fact, the US Food and Drug Administration’s clearance of the Malaysian unit is a positive. Investors hope that this product will shore up revenue despite the delay.