Biotech firm Biocon will have to wait it out before revenues from its psoriasis drug start flowing in.
The company recently received marketing approval for the drug itolizumab (brand name Alzumab) from the Drugs Controller General of India (DCGI).
Analysts said the drug, which will be launched only in the latter half of calender year 2013, will see revenues coming in only two years after the launch.
Experts predict the company can garner about Rs50-100 crore annually from itolizumab.
Bhavin Shah, analyst, Dolat Capital, said, “The product is for a niche indication. It will take time for doctors to start prescribing the product. Moreover, it will be a value game with limited volumes.”
Amit Bangia, dermatologist at the Asian Institute of Medical Sciences in Faridabad, said derma products are gaining importance due to rise in skin problems because of stress levels and lifestyle changes.
Harith Ahamed, research analyst at Spark Capital, said the approval will increase the attractiveness of the product as an ‘out-licensable’ asset and “significantly enhance the probability of an out-licensing deal for the drug in the near term.”