Biocon: Biosimilar Milestones Are Real, Profits Remain Thin

Biocon is a biopharma company. Its wholly owned subsidiary, Biocon Biologics, develops biologic medicines including oncology biosimilars. The portfolio covers trastuzumab, pertuzumab and bevacizumab, alongside 17 cancer medicines in total. What happened: In Q1 FY27, consolidated revenue rose 10% year on year to Rs 4,336 crore. Net profit improved to Rs 141 crore from Rs 31 crore. Biosimilars revenue grew 16% to Rs 2,855 crore and generics rose 21% to Rs 760 crore. Research services fell 16% to Rs 736 crore. On 14 October 2026, Biocon settled a patent dispute with Genentech over Pebrilzo, its pertuzumab biosimilar, securing EU and UK launch from Q1 CY2027 and US launch from Q3 CY2028. Why it matters: The Pebrilzo settlement removes a barrier to developed-market launch. In September 2026, the EMA’s CHMP recommended marketing authorisation for Pebrilzo, a regulatory step toward final approval. Biocon also partnered with Bahiafarma and Bionovis under Brazil’s ten-year pertuzumab PDP programme, covering about 70% of Brazil’s pertuzumab demand, though contract value and purchase volumes were not disclosed. What I am watching: Biocon does not report oncology revenue separately, so individual product performance is not visible. The pipeline includes nivolumab and pembrolizumab biosimilar candidates, each with its own regulatory timeline. The share price is down 17.68% year to date and trades at a P/E of 98.25 times. My stance: The Pebrilzo settlement is a genuine milestone. But the stock prices a recovery not yet in earnings. At nearly 100 times earnings, patience is required until developed-market launches appear in reported profits. I do not hold a position in Biocon at the time of writing. This is not investment advice.