Biocon: Biosimilar launches prop up Q2 show; healthy returns seen in future

The strong momentum is likely to continue, led by biosimilars and steady show of other segments

Biocon's September quarter (Q2) performance was strong, driven by growth across its businesses such as biologics and contract research. The Q2 numbers and future outlook suggest that the Biocon stock, which has delivered strong gains in the past one year, should deliver healthy returns going ahead as well.   

The Q2 was driven by the biologics segment (27 per cent of Biocon's sales), which clocked a robust 136 per cent year-on-year growth in sales led by the US launch of the Pegfilgrastim biosimilar (used during chemotherapy), while traction in biosimilars/insulins in emerging markets has also gained momentum. The research services