AHAN – I sold shares of Biocon in the open market on Friday, which resulted in a 9.04 percent decline in the company’s stock price. According to the NSE bulk sales data, AHAN-I sold 189,28,363 equity shares of the firm at an average price of 200.74. The transaction’s buyers are not immediately identified.
The Indian pharmaceuticals giant Biocon recently received an investment of RS 1,070 crore from Kotak Special Situations Fund (KSSF).
The Bangalore-based pharmaceutical company intends to use the cash to finance the acquisition of Viatris’ biosimilars business by its subsidiary Biocon Biologics in order to establish a globally dominant vertically integrated biosimilars player.
For the quarter that ended in December 2022, Biocon reported a net loss of 42 crore rupees. This compares to a profit of 187 crore in the same quarter last year, which was affected by an unusual item of 271 crore attributable to expenses associated to the Viatris deal.
In Q3FY23, Biocon’s operational revenue increased 35% to 2,941 crore from 2,174 crore in the same period a year prior.
According to the Q3 financial report released on February 14 by Kiran Mazumdar-Shaw, Executive Chairperson of Biocon and Biocon Biologics “The completion of the global acquisition of our partnered Biosimilars business from Viatris on November 29, 2022 marked the end of the eventful third quarter of FY23. We are now executing country-by-country business integration to increase the value of the merged firm and foster growth. Based on vertical integration, a distinctive array of insulins, and antibody-based immunotherapeutics, the biosimilars market provides Biocon Biologics exceptional growth. Only a small portion of the acquired business is included in this quarter’s financials; however, starting with Q4FY23, the whole Biosimilars business will be recognised.”
The shares of Biocon hit a new 52-week low of 199.70 before ending 9.04 percent lower at 201.80 on the BSE.
