Shares of Biocon hit a one-year high in Monday’s trade as the markets cheered after the USFDA validated its biosimilar cancer drug Trastuzumab and approved it for the US market on Friday night. The drug, co-developed by US drug maker Mylan, is the first biosimilar Trastuzumab to get a marketing approval in US markets.

Biocon rose 15%, closing at Rs 514, and the USFDA development sparked a revision of target price for its shares across brokerages. Biosimilar drugs are identical copy of highly complex biologic drugs that claim to have the same efficacy as the innovator’s version.

“FDA approval for Trastuzumab validates Biocon’s capabilities in biosimilars, eases manufacturing concerns and potentially improves its ability to get approvals in other markets. We raised target price to Rs 525 from Rs 410 and include in our Top 3 pharma picks along with Aurobindo and Cipla”, wrote Citi in a report. Citi said Biocon is most leveraged among its Indian peers to global biosimilar and should deliver meaningful upside over the long term.