Among the key buyers were ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Life Insurance, Bajaj Allianz Life Insurance, and Norges Bank on behalf of the Government Pension Fund Global.Bernstein remains cautious
Global brokerage Bernstein reiterated its ‘Underperform’ rating on Biocon with a price target of ₹326, suggesting a potential downside of 25% from current levels.
The brokerage said the block deal primarily offered Viatris (formerly Mylan) a clean exit but does little to alter Biocon’s earnings trajectory.
According to Bernstein, the market appears to be factoring in an improvement in the company’s financial position and a smoother leadership transition, but the brokerage believes those concerns are yet to be fully addressed.
It outlined three key reasons for its cautious stance —First, investments in the Biologics and Syngene businesses have yet to generate sufficient revenue growth to support the company’s leverage.
Second, evolving policy changes are reducing competitive barriers in the biosimilars market, potentially weakening the competitive advantages that Biocon has historically enjoyed. As a result, Bernstein expects it could take four to five years for the company to cross the $2 billion revenue milestone.
Lastly, it believes the company’s succession strategy remains centred on scientific innovation rather than stronger commercial execution and capital allocation.
DAM Capital turns positive
In contrast, DAM Capital maintained its ‘Buy’ rating on Biocon with a price target of ₹495.
The brokerage said Mylan’s complete exit removes a long-standing overhang on the stock. However, it noted that three other investors who received Biocon shares during the restructuring process may also choose to monetise their holdings over time, although the timing remains uncertain.
Despite a mixed performance in the second half of FY26, DAM Capital believes Biocon’s biosimilars business has reached an inflection point and is well positioned to sustain growth.
The brokerage expects earnings momentum to strengthen from the second half of FY27, driven by the scale-up of products such as bUstekinumab, bAspart and bDenosumab, along with the expected launch of bAflibercept.
It also forecasts a 15% revenue CAGR between FY26 and FY28, while expecting EBITDA margins to remain in the 26-27% range.
