Biocon gains after agreement with CMS

Biocon rose 1.21% to Rs 235.10 at 09:17 IST on BSE after the company announced it has signed a license and supply agreement with a subsidiary of China Medical System Holdings for three generic formulation products in Greater China.

The total addressable market size for these three products in Mainland China is about $0.8 billion, as per recent IQVIA data.The initial term of the agreement shall be for 10 years from the date of commercialization, extendable by two years on a product basis by mutual consent and could also be extended to a broader portfolio in future, the firm said.

The biopharmaceutical firm added that this development is in line with its long term generic formulations strategy and expands the generic formulations business footprint to the Chinese pharmaceuticals market, which is the second largest pharmaceutical market in the world.

Meanwhile, the S&P BSE Sensex was down 45 points or 0.12% to 37,059.6.

On the BSE, 7367 shares were traded in the Biocon counter so far compared with average daily volumes of 2.91 lakh shares in the past two weeks. The stock hit a high of Rs 237.8 and a low of Rs 234.3 so far during the day. The stock hit a 52-week high of Rs 359.18 on 26 Sep 2018. The stock hit a 52-week low of Rs 211.3 on 20 Aug 2019.

Under the terms of the agreement, Biocon will be responsible for the development, manufacturing and supply of the products. China Medical System (CMS) will be responsible for registration and commercialization of the products in China. CMS is an innovation-driven specialty pharma company with focus on sales and marketing in China.

Dr Arun Chandavarkar, CEO and Joint Managing Director, Biocon, said that this collaboration will allow the company to take US approved generic formulations to patients in China, allowing it an early entry in the world's second largest, and rapidly-growing generics market.

Biocon is a fully-integrated, innovation-led global biopharmaceuticals company.

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