Biocon Block Deal: Active Pine likely to sell 1.66 crore shares at ₹385 per share

Active Pine LLP is likely to sell up to 1.66 crore shares, or 1% equity, in biotechnology major Biocon Ltd through a block deal, according to sources. The offer size is pegged at ₹638.4 crore, with the floor price set at ₹385 per share, sources said.

The floor price could offer a discount of up to 1.9% to Biocon’s current market price (CMP). The seller is subject to a 30-day lock-up period for any further sale of its stake.

Earlier today, Biocon said it is confident that its biosimilars business can reach the $1 billion revenue mark soon. The company is seeing strong demand for insulin and traction for newer products such as aflibercept, supporting growth. However, it is not committing to a specific timeline for achieving the target.

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MD and CEO Shreehas P Tambe said, "Clearly, the opportunity [in biosimilars] is now and here. It's not so much limited by whether we can do it. The question really is how soon can we get there?”

Insulin remains a big opportunity with strong demand. The company has recently inaugurated a new facility in Malaysia to cater to this demand. Tambe said the broader aim is to make affordable medicines more accessible to patients.

Beyond insulin, Biocon has a portfolio of more than 30 biosimilars, including newer products such as aflibercept and established products such as trastuzumab and pegfilgrastim. Aflibercept, used in eye care, is seeing strong traction, particularly in the US. Tambe said earlier concerns that ophthalmologists may resist biosimilars for retinal injections have now been dispelled. “I think that myth is busted and there's a big acceptance of biosimilars."

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The company also expects double-digit revenue growth in biosimilars, while targeting margins in the mid-20% range. Biocon has recently combined its biologics and generics businesses, and is working to improve the profitability of the generics segment, which had earlier operated at low-teen margins. Tambe said getting the combined business to the mid-20s would represent a substantial improvement.

US regulatory changes could provide another boost. The Food and Drug Administration’s (FDA) move to reduce the need for Phase 3 trials for biosimilars could help companies bring products to patients faster and at lower cost. At the same time, higher requirements for manufacturing quality and comparability could favour established players such as Biocon, according to Tambe.

Shares of Biocon Ltd ended at ₹392.55, down by ₹0.95, or 0.24%, on the BSE.

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