Shares of Biocon Ltd. extended gains for the second consecutive session to hit a 30-month high on Thursday after a media report said that the GST Council may lower the tax on cancer drugs.
The 54th GST Council meeting on Sept. 9 is likely to provide relief to cancer drugs like Trastuzumab Deruxtecan, Osimertinib, Durvalumab by reducing the GST rate to 5% from the current level of 12%, as per the report.
Biocon is the first company globally to get US FDA approval for biosimilar Trastuzumab in 2017, the biopharmaceutical company said on its website.
Shares of the company rose as much as 4% to Rs 394.75 apiece, the highest level since Feb. 28, 2022. However, the stock pared gains to trade 2.3% higher at Rs 387.70 apiece as of 10:49 a.m. This compares to a 0.1% decline in the NSE Nifty 50 index. The stock has gained nearly 8% in the past two sessions.
The stock has risen 55.4% on a year-to-date basis and 42.47% in the last 12 months. Total traded volume on the NSE so far in the day stood at 2.76 times its 30-day average. The relative strength index was at 7, indicating that the stock may be overbought.
Out of the 17 analysts tracking the company, seven maintain a 'buy' rating, three recommend a 'hold,' and seven suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 15.5%.
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