PhillipCapital has upgraded the Biocon stock to a ‘buy’ rating from existing ‘neutral’ with a target price of Rs 500 per share.

The brokerage upgrade comes after the United States Food and Drug Administration (US FDA) notified that Amgen, the pharma company of misbranding Neulasta, which is basically Pegfilgrastim OnPro kit over a standard prefilled syringe, which means that the target market for the biosimilar Pegfilgrastim doubles, according to this particular note.

PhillipCapital estimates that Biocon’s Pegfilgrastim sales can now grow around 22 percent CAGR to around $100 million in FY23.

Separately, visible progress in US biosimilars, such as Insulin Aspart approval, which is a diabetes biosimilar, likely interchangeability for insulin glargine as well as Aspart and likely launch of Bevacizumab as well as Rh insulin in the US in FY23.

Watch the accompanying video of CNBC-TV18’s Ekta Batra for more details.

(Edited by : Ajay Vaishnav)