Shares of Biocon Ltd. extended gains for the second consecutive session to hit a 30-month high on Thursday after a media report said that the GST Council may lower the tax on cancer drugs.
The 54th GST Council meeting on Sept. 9 is likely to provide relief to cancer drugs like Trastuzumab Deruxtecan, Osimertinib, Durvalumab by reducing the GST rate to 5% from the current level of 12%, as per the report.
Biocon is the first company globally to get US FDA approval for biosimilar Trastuzumab in 2017, the biopharmaceutical company said on its website.
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Shares of the company rose as much as 4% to Rs 394.75 apiece, the highest level since Feb. 28, 2022. However, the stock pared gains to trade 2.3% higher at Rs 387.70 apiece as of 10:49 a.m. This compares to a 0.1% decline in the NSE Nifty 50 index. The stock has gained nearly 8% in the past two sessions.
The stock has risen 55.4% on a year-to-date basis and 42.47% in the last 12 months. Total traded volume on the NSE so far in the day stood at 2.76 times its 30-day average. The relative strength index was at 7, indicating that the stock may be overbought.
Out of the 17 analysts tracking the company, seven maintain a 'buy' rating, three recommend a 'hold,' and seven suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 15.5%.
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