Biocon, in partnership with Zentiva, has obtained approval in the European Union (EU) for their Liraglutide formulation, a generic equivalent to Novo Nordisk's Victoza and Saxenda. This approval, granted through a decentralized procedure, allows the pharmaceutical company to market a more affordable alternative for treating Type-2 Diabetes and aiding in weight management across multiple EU member states. The announcement led to a notable increase in Biocon's stock value, signaling positive market reception.
Decentralized Procedure Approval
The decentralized procedure enabled Biocon and Zentiva to submit a single drug application for review, coordinated by a reference member state, facilitating parallel approvals across various EU countries. This streamlined approach is particularly beneficial for medicines that do not require centralized authorization and have not yet been approved in any member state, according to the European Medicines Agency.
Therapeutic Target and Market Impact
Liraglutide, a GLP-1 receptor agonist, is indicated for improving glycemic control in adults with Type-2 Diabetes, as an adjunct to diet and exercise. It is also approved for chronic weight management in adults with obesity or who are overweight and have at least one weight-related condition. With the rising prevalence of diabetes and obesity worldwide, the availability of a generic Liraglutide offers a cost-effective treatment option, potentially increasing patient access.
Financial Performance and Market Capitalization
Following the announcement, Biocon's shares experienced an increase of 4.95% on the NSE, reaching an intraday high of ₹345.85. The company's market capitalization stands at ₹41,252.62 crore as of December 24. This approval marks a significant milestone for Biocon, strengthening its presence in the European pharmaceutical market and contributing to its growth trajectory.
