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Biocon shares decline even though analysts see up to 30% upside on stock — Should you buyBiocon Share Price | Both Jefferies and Citi have "buy" ratings on the stock with price targets of ₹370 and ₹430 apiece, up 12% and 30% from the previous closing price of ₹329.9 per share, respectively.By Shloka Badkar   May 12, 2025, 10:57:24 AM IST (Published)2 Min ReadShares of Biocon Ltd declined in trade on Monday, May 12, even after analysts projected up to a 30% upside on the stock.

Both Jefferies and Citi have "buy" ratings on the stock with price targets of ₹370 and ₹430 apiece, up 12% and 30% from the previous closing price of ₹329.9 per share, respectively.

Jefferies said the company's quarterly results beat estimates from higher supplies of gRevlimid, which is likely to normalise in the coming quarters.

The brokerage said Biocon's market share gains in the recent launch of biosimilar Sterlara in the US along with four other launches in the developed markets will be monitored closely.

Biocon is planning a significant equity fund raise and will need to demonstrate strong execution, it said.

Jefferies added that it has cut the FY26/27 EBITDA by 9% each on weak outlook for Syngene.

Meanwhile, Citi said Biocon's fourth quarter earnings were weak as ex-gRevlimid EBITDA margin of nearly 20% declined around 300 bps.

Growth of almost 4% in biosimilars, from the previous year, despite a strong market share expansion in oncology assets, indicates a weak pricing scenario, Citi said.

A 53% sequential growth in generics was primarily led by the launch quantities of gRevlimid at around $30 million, while the base line seems to have improved, driven by new launches, the brokerage said.

The company is well placed to commercialise five new biosimilar assets for the next 12 to 18 months.

A failure to gain market share and unfavourable pricing scenario in biosimilars and a longer than expected growth recovery in research services, remains risky, Citi added.

On another note, US President Donald Trump in a post on his social media network 'Truth Social' said he plans on signing an executive order at 9 am Washington time on Monday to bring down the costs of prescription and pharmaceutical drugs from 30% to 80% with immediate effect.

Of the 18 analysts that have coverage on the stock, 10 have a "buy" rating, three have a "hold" rating and five have a "sell" rating.

Biocon shares declined 3.6% to hit an intraday low of ₹317.9 apiece on Monday, May 12. The stock was trading 1.61% lower at ₹324.6 apiece at 10 am.

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