Shares of Biocon Ltd. experienced a notable rise of nearly 5% in early trade on Tuesday following a substantial block deal executed on the National Stock Exchange (NSE).
The transaction involved 4,59,83,509 shares, amounting to a total value of ₹1,839.34 crore. These shares were traded at an average price of ₹400 apiece, representing a 2.66% discount compared to Biocon's closing price of ₹410.95 on Monday. Following the deal, Biocon's stock price climbed to ₹430.95 per share.
Mylan Inc. Identified as Likely Seller
Sources indicated that Mylan Inc., a company now part of Viatris, was the probable seller in this large transaction. Mylan held a 5.64% stake in Biocon, totaling 9,19,67,019 shares, at the end of the June quarter. While the specific details of buyers and sellers were expected to be officially released by stock exchanges after market hours, Mylan's significant holding made it the likely party offloading a portion of its stake.
Citigroup Global Markets India and Jefferies India were reportedly the joint bookrunners managing the block deal.
Market Context and Upcoming Results
This major share transaction takes place just ahead of Biocon's first-quarter (Q1) financial results. Analysts are closely watching the pharmaceutical major's performance, particularly its biosimilars segment.
Kotak Institutional Equities anticipates approximately 20% year-on-year growth in Biocon's core biosimilars sales for Q1FY27, driven by market share expansion in key products and the rollout of bStelara in the US, alongside the launch of Denosumab. The brokerage also projects a 22% year-on-year growth in the generics segment, partly due to the continued success of Liraglutide in European markets.
Overall, Kotak expects a 15% year-on-year increase in Biocon's total revenue, reaching an estimated ₹4,520 crore for the quarter, with Ebitda projected to grow by 28% year-on-year to ₹960 crore.
Similarly, Axis Securities forecasts a 15% year-on-year growth in the research segment and 6% growth in the generics segment. Their outlook emphasizes margin improvement over sales volume, with biosimilars expected to achieve 10% year-on-year growth, supported by new product launches like Insulin Aspart and Yesafili.