Kiran Mazumdar Shaw led pharma major Biocon since the March lows has reaped 65% gains, implying that if you had invested Rs. 10000 before the lockdown your money now is worth Rs. 16,500.
In Monday's trade the stock struck a 52-week high price of Rs. 455, surged closed to 10% after it received an approval for use of Itolizuma for emergency use.
It was on July 11 that the company's drug Itolizuma was granted DCGI approval for using Itolizumab for treating moderate and severe coronavirus patients.
Pharma Sector Stands Out Amid Covid 19 Pandemic
While most sectors struggled to continue their operations, pharma continued to fight and work for fighting the pandemic and Biocon also joined others in the discovery and development of repurposed drugs. While these are used for treating other drugs, their generic version is used for the cure of coronavirus infection.
As per an ET source even despite tremendous potential seen for the sector, some of the names in the space did not fared as well as Biocon including the likes of Lupin, Alkem Lab, Cadila Health etc.
Other than the Itolizuma the company's subsidiary's CytoSorb has been given approval for treating coronavirus patients.
Outlook for Biocon Shares
Going forward, Biocon shares do not hold a promising future in the short term as analyst see a 19% downside in the stock from the last traded price of Rs. 414.85 per share on the NSE.
In a contrasting view however Axis Direct gave a 'buy' recommendation on the stock with a target price of Rs. 474.