Budget 2020 MyPick: Go for this unstoppable Pharma stock, recommend experts

Finance Minister Nirmala Sitharaman is going to present Budget 2020 on 1st February. Significantly, sops are expected to flow and not only for the middle class income group, government may even grant huge relief for industries as well. Market experts are studying and focusing on those industries which can get relaxations, and they have big expectations that the Pharma sector will benefit hugely. And which company specifically can benefit? Market experts advised that investors should add this Pharma share in their portfolio as will bring more returns in Budget. The name of this stock is Biocon. 

Yes, if we are talking about Pharma, we cannot forget about Biocon, which is one of the leading stocks in this country. Biocon has a good hold in segments like Anti cancer and Anti diabetes. Biocon's record for corporate governance and management along with its exports business is excellent.

Biocon was founded by Kiran Mazumdaar Shaw. She invested $150 dollar on Biocon out of her saving. That time the value of $1 was Rs 8.5. 

MAY GIVE GREAT RETURNS IN 1 YEAR
According to the MD anc CEO of Enoch Ventures, Vijay Chopra, Investors should go for Biocon! At present, Biocon's stock price is Rs 282 and after an year it may reach upto Rs 400. 

UPS-DOWNS
Biocon has seen many ups and downs within a year. In January 2019, the price of the stock was Rs 325. In August it reached to Rs 219 but later, it improved its performance and reached Rs 282. According to experts, the stock price of Biocon will keep increasing in coming days.

Pharmaceuticals major Biocon Ltd was in the news in January, 2020 first week when it said that its subsidiary Biocon Biologics India has approved the acquisition of 2.44 per cent stake in it by private equity firm True North with an investment of Rs 536.25 crore.

In a regulatory filing, Biocon said that the transaction is subject to standard condition precedents including regulatory approvals and post the completion of this transaction, Biocon will hold 96.07 per cent stake in Biocon Biologics. The deal values the unlisted subsidiary at around $3 billion.

"As per the terms of the proposed agreement, True North will invest Rs 536.25 Crore that will eventually translate to a 2.44 per cent minority stake in the biosimilars business post all restructuring, including the filed merger of Biocon Research Ltd with Biocon Biologics, valuing Biocon Biologics at Rs 21,450 crore or $3 billion on a pre-money equity basis," it said.

Commenting on the development, Kiran Mazumdar Shaw, Chairperson and Managing Director of Biocon said: "This investment is an endorsement of the value that Biocon Biologics has demonstrated as a global biosimilars player, having commercializsd three of its molecules in developed markets like EU, the US, Japan and Australia. This is at an important inflection point as we gain commercial success with our first wave of Biosimilar products and invest in the long term through broadening our pipeline, expanding our manufacturing capacity and increasing our commercial footprint."