Biocon shares surge 5% after USFDA classifies Bengaluru site as VAI

Shares of Biocon today zoomed 5.4% to an intraday high of Rs 338.60 on the BSE after the company on Sunday after the U.S. Food and Drug Administration (FDA) classified Biocon Biologics’ Bengaluru facility as Voluntary Action Indicated (VAI).

“The U.S. Food and Drug Administration (FDA) has classified Biocon Biologics’ facilities at Biocon Park, Bengaluru, India, as Voluntary Action Indicated (VAI),” said the company in a statement in its filing to the stock exchanges.

This update is related to the combined cGMP inspection and pre-licensing inspection (PLI), which was conducted by the agency between July 15 – 26, 2024.

“The inspection scope had included six (6) separate Biologics manufacturing units comprising of four (4) Drug Substance and two (2) Drug Product manufacturing plants as well as five (5) Analytical Quality Control Laboratories, four (4) Microbiology Laboratories, and two (2) Warehouses,” the company informed.

The shares of Biocon have increased by 47.7% in the last one year and are up by 31.4% in the current year so far. In the last 6 months, the stock surged by 10.4%, however, has fallen by merely 0.27% in the last 3 months, according to the BSE analytics.

Technically, the stock is currently trading above its 10, 20 and 200 and day exponential moving average (DEMA), but below the 50 and 100 DEMA. The stock is oscillating near the 42.4 level on the relative strength indicator (RSI), which is a mid-range mark on the indicator, according to the Trendlyne data.

An RSI below 30 is considered oversold, and above 70 is overbought.

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