Biocon - Another sugar pill for insulin portfolio - AXIS Securities

Biocon has entered into an agreement with Mylan for co-development and commercialization of 3 bio-similar insulin products – Glargine, Lispro and Aspart. The deal comes after its marketing tie-up with Pfizer was severed in early 2012.The deal does not come as a surprise as management had already indicated it was in talks with marketing partners.

The deal does not yield any immediate significant financial benefit to Biocon (apart from undisclosed upfront payment), but it lends support to R&D cost of clinical trials for all three products and also gives marketing muscles to commercialize biosimilar insulins in an oligopoly market dominated by Sanofi, Novo and Eli Lilly. We maintain our TP of Rs 311 (12x FY15E EPS of Rs 26) with HOLD rating.

Source : Equity Bulls

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