Biocon Ltd. is expected to be the biggest beneficiary as major pharma players exit European insulins market.
On Tuesday, reports said Eli Lilly and Co. is phasing out select insulin products across parts of Europe for commercial reasons, with regulators emphasising that the move is not linked to safety or quality concerns. The withdrawals, which vary by country, are expected to be completed before the second quarter of 2027. The company is a major player in the insulin market.
Last year, Novo Nordisk stopped marketing some of selected presentations of insulins due to commercial reasons.
Analysts said Biocon can capture the market share vacated by these big innovators. The Bengaluru-based drugmaker has approvals for biosimilar versions of Insulin Glargine, Insulin Aspart and Human Insulin. The company has $70 million insulin business in Europe.
Novo Nordisk has also been phasing out human insulin pens in India, creating a Rs 600-800 crore opportunity for players like Biocon, Eris Lifesciences Ltd., Wockhardt Ltd.and Lupin Ltd. to enter the market.
Biocon Share Price
Biocon share price traded 3.2% higher at Rs 381 on the NSE by 11:17 a.m. The benchmark Nifty 50 was up 2.2%.
The stock has risen 9.5% in the last 12 months and is down 3.3% on a year-to-date basis.
Eleven out of the 17 analysts tracking Biocon have a 'buy' rating on the stock, two recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets is Rs 435, which implies a potential upside of 14%.
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