Pharma Stocks Under Pressure: Shares Drop Nearly 4 per cent Despite Diabetes and Obesity Drug Launch in UK

With GLP-1 therapies expected to be a significant revenue driver in the future, Biocon aims to strengthen its footprint in this segment.

Shares of Biocon Ltd took a hit on Friday, February 28, 2025, slipping to a day’s low of Rs 300.10, marking a 3.92 per cent decline from the previous session’s closing price. The broader NIFTY Pharma index also struggled, down 1.34 per cent by 12:30 pm, signaling overall weakness in the pharmaceutical sector.

Biocon’s stock movement came as a surprise, especially considering the company had just announced a significant milestone. The biopharmaceutical giant revealed that it has launched its Glucagon-like Peptide-1 (GLP-1) drug, Liraglutide, for diabetes and obesity treatment in the United Kingdom (UK). The drug-device combination will be sold under the brand names Liraglutide Biocon (gVictoza®) for diabetes and Biolide (gSaxenda®) for chronic weight management.

Despite receiving approval from the UK’s Medicines and Healthcare Products Regulatory Agency (MHRA) earlier this year—making Biocon the first generics company to secure approval for gLiraglutide in a major regulated market—investors seemed unimpressed. Instead of a positive reaction, the stock continued its downward trend, reflecting broader market sentiments or potential concerns over near-term financial performance.

GLP-1 medications like Liraglutide help lower blood sugar levels and promote weight loss, making them crucial in treating diabetes and obesity. Liraglutide is a synthetic version of the GLP-1 peptide and is administered through a once-daily injection.

Biocon’s management remains optimistic about the impact of this launch. A company spokesperson highlighted that this move reinforces Biocon’s commitment to expanding access to affordable healthcare solutions worldwide. “The launch of our gLiraglutide in the UK marks a major milestone for Biocon. This development demonstrates our scientific expertise and strengthens our position in the global pharmaceutical market. Our focus remains on expanding this drug’s reach across Europe, the US, and other emerging markets,” the company stated.

Biocon Limited, publicly listed since 2004, is a global biopharmaceutical company specializing in innovative and affordable treatments for chronic diseases like diabetes, cancer, and autoimmune disorders. The company has successfully developed and commercialized biosimilars, novel biologics, and complex small molecule APIs in India and international markets, including the US and Europe. It is also investing in cutting-edge immunotherapy research.

Biocon’s stock is currently trading at a price-to-earnings (P/E) ratio of 43.9, with a market capitalization of over Rs 36,000 crore. However, the stock has faced a correction of more than 18.5 per cent so far in 2025. 

Disclaimer: This article is for informational purposes only and should not be considered investment advice.