Biocon Limited shares climbed 2% on Tuesday, 8 September, touching a day high of Rs 399.90 after signing a 10-year Brazil cancer drug deal.

Here’s the simple version of what happened. Biocon has signed a partnership agreement with Bahiafarma and Bionovis, two Brazil-based pharma companies, to supply Pertuzumab in the country.

Pertuzumab is used to treat HER2-positive breast cancer, a common and aggressive form of the disease.

This deal falls under Brazil’s Productive Development Partnership (PDP) programme, a government scheme that helps local healthcare systems get access to medicines that aren’t yet manufactured domestically.

The three-company consortium, Biocon, Bahiafarma and Bionovis, has been given full, 100% allocation under this scheme for Pertuzumab. That’s a meaningful win.

It gives the group exclusive access to nearly 70% of Brazil’s public healthcare demand for this drug. Right now, Pertuzumab isn’t produced locally in Brazil, so it’s an expensive import for the country’s public health system.

This partnership aims to change that over time. Under the terms of the agreement, Biocon will earn milestone-based payments along with a share of revenue generated from the programme across its 10-year run.

Production of the drug is also expected to shift to Brazil in stages, as part of the deal’s phased localisation plan.

Commenting on the development, Biocon’s CEO and Managing Director, Shreehas Tambe, said the partnership would help the company reach more patients living with HER2-positive breast cancer and build a more sustainable path for access to the therapy.

There’s no earlier order tied specifically to this Brazil programme, but the stock’s recent run gives useful context. Biocon is up 8.84% over the past year and 2.22% year-to-date, even after a 7.04% dip in the last month alone.

As of 10:29 am, the stock was changing hands at Rs 396.35 on the NSE, holding on to its 1.26% gain for the day.

That puts Biocon’s market capitalisation at roughly Rs 64,593 crore, still some distance from its 52-week high of Rs 447.15, hit back in mid-July.

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