Biocon rises after company signs licensing agreement with Brazilian firm Biomm

Shares of Biocon were trading higher on Thursday after the company signing of an exclusive licensing and supply agreement with Biomm S.A. for the commercialisation of its vertically integrated drug product, Semaglutide (gOzempic), used to improve glycemic control in adults with type-2 diabetes.

Biomm S.A. is a specialty pharmaceutical company based in Brazil that focuses on developing, manufacturing, and commercializing complex biotech and bio-similar drug products.

Biocon said under the terms of the agreement, it will undertake the development, manufacturing and supply of the drug product, and Biomm will be responsible for obtaining regulatory approval and commercialisation in the Brazilian market.

According to IQVIA MAT Q4 2023, the potential market for Semaglutide in Brazil stands at about $580 million.

Siddharth Mittal, CEO and Managing Director of Biocon sees the partnership with Biomm as a significant move in expanding their global presence beyond the U.S. and Europe. “This is also in line with our growth strategy of bringing to market a portfolio of complex, GLP-1 drug-device combination products,” he said.

Heraldo Marchezini, Chief Executive Officer at Biomm pointed out that Brazil is the fifth country in the world with the highest incidence of diabetes, having 1.68 crore adults in the age group of 20 to 79 years with the disease, and an estimated 2.15 crore cases by 2030. “We have, therefore, prioritized strategic partnerships to expand the population's access to advanced treatments for this disease and enhance the quality of life for people,” he said.

Shares of Biocon have risen over 8% since the beginning of the year. The stock has gained over 15% in the last one year.