Beyond chemotherapy: 2 pharma stocks betting on the next wave of cancer treatment

Zydus Lifesciences and Biocon offer two different routes into this market, through established oncology biosimilars, newer immunotherapies, international licensing and manufacturing. FE Stock Insights on WhatsApPGet instant alerts on high-conviction investment themes and fundamental deep dives—direct from Financial Express.Join now Zydus Lifesciences: Turning Complex Biologics Into a Broader Oncology Business Zydus Lifesciences is an Indian pharmaceutical company with businesses spanning formulations, active pharmaceutical ingredients, consumer wellness and biologics.

Its oncology exposure includes biosimilars targeting specific cancer-related proteins, immunotherapy and a developing international biologics manufacturing business. The Precision Portfolio: From HER2-Positive Breast Cancer to Immunotherapy Zydus's established oncology portfolio includes Vivitra, a trastuzumab biosimilar; Sigrima, a pertuzumab biosimilar; and Ujvira, a trastuzumab emtansine (T-DM1) biosimilar.

These medicines have distinct treatment roles in eligible human epidermal growth factor receptor 2 (HER2)-positive breast cancers. Their commercial opportunity depends on prescribing practices, competition, affordability and access to diagnosis. They are not interchangeable products, and their combined presence does not establish how much revenue Zydus earns from oncology. In January 2026, Zydus launched Tishtha, its nivolumab biosimilar in India, at announced prices of ₹13,950 for the 40 mg presentation and ₹28,950 for the 100 mg presentation.

Nivolumab blocks programmed death-1 (PD-1), an immune checkpoint that can prevent immune cells from attacking cancer. Unlike a medicine selected solely through a tumour's genetic profile, nivolumab is an immunotherapy used according to the cancer type, clinical evidence and approved indication. Zydus's annual report for FY2024-25 also documented international approvals for bevacizumab biosimilar Bhava and trastuzumab biosimilar Mamitra in Mexico, trastuzumab in Myanmar andT-DM1 in Bolivia.

These approvals demonstrate regulatory reach, but not necessarily commercial scale in those markets. Agenus and Formycon: Two Different Routes Into Global Oncology Zydus's acquisition of two biologics manufacturing facilities from US-based Agenus is a separate growth opportunity from selling its own cancer medicines. Announced in June 2025 and completed on 15 January 2026, the transaction involved US$75 million upfront and a further US$50 million contingent on revenue milestones over three years.

Zydus also announced a separate investment through its venture capital arm to acquire a 5.9% stake in Agenus on a fully diluted basis. The acquired facilities now operate under Zylidac Bio LLC, establishing Zydus's presence in the US biologics contract development and manufacturing organisation (CDMO) market. Under an exclusive manufacturing arrangement, Zydus is to manufacture drug substances and finished products for Agenus's investigational immuno-oncology candidates botensilimab and balstilimab, which target CTLA-4 and PD-1 respectively.

This creates a potential manufacturing-services revenue stream, but it should not be confused with revenue from approved cancer medicines. The candidates' clinical progress and any future commercial sales remain separate uncertainties. A second route is the December 2025 agreement with Germany-based Formycon for FYB206, a pembrolizumab biosimilar candidate, in the United States and Canada. Formycon is responsible for development, registration, manufacturing and supply, while Zydus is responsible for commercialisation in those territories.

Pembrolizumab is a PD-1 inhibitor used in several cancer settings. However, the partnership's value depends on regulatory progress, the timing of market entry, competitive conditions and the commercial terms. The agreement expands Zydus's potential future reach without establishing a current sales contribution. The Q1FY27 Financial Baseline: What the Numbers Can and Cannot Prove For the quarter ended 30 June 2026, Zydus reported standalone revenue from operations of ₹2,872.20 crore, other income of ₹123.70 crore, total income of ₹2,995.90 crore and profit before tax of ₹455.70 crore.

The company identifies pharmaceuticals as its single operating segment. Consequently, these figures provide a view of the wider business but do not reveal the revenue or operating profit generated specifically by oncology, biosimilars or immunotherapy. The Stock Market's Verdict: Returns, Valuation and Brokerage Expectations Source: Screener.in On 23 October 2026, Zydus Lifesciences closed at ₹1,129.40 on the National Stock Exchange (NSE) with a trailing price-to-earnings (P/E) ratio of 25.3 times.

The stock had delivered a 19.14% six-month return and a 22.79% year-to-date return. 62 billion food ingredients opportunity: 2 stocks, two very different bets Nuvama Institutional Equities upgraded Zydus to Buy from Reduce on 12 August 2026 and raised its target price to ₹1,400 from ₹1,050 following the Q1FY27 results. At the quoted share price, the revised target implies approximately 24.0% upside.

The reported rationale included domestic formulations, US specialty medicines and biologics manufacturing. It should therefore be read as a broader company valuation view, not as a target based solely on precision oncology. Biocon: Scaling Targeted Cancer Medicines Through Biosimilars and Global Market Access Biocon is an Indian biopharmaceutical company with businesses in biosimilars, generics and research services.

Its wholly owned subsidiary, Biocon Biologics, develops and commercialises biologic medicines, including treatments used in oncology. The Oncology Portfolio: Established Medicines Versus Future Growth Drivers Biocon Biologics has an established oncology portfolio that includes trastuzumab, pertuzumab and bevacizumab biosimilars, alongside small-molecule cancer medicines. Their commercial potential relies on approved indications, market access, pricing, competition and the ability to maintain reliable supply.

In FY2024-25, the company launched bevacizumab in European markets including Spain, Portugal, Austria and the United Kingdom. It was also launched in emerging markets such as Brazil, Mexico, Vietnam and the United Arab Emirates. Selected markets also saw growth for trastuzumab and pegfilgrastim. These disclosures show a broad commercial footprint, but do not show current sales or market share for all products in all countries.

Brazil's Ten-Year Pertuzumab Programme: Access Without a Disclosed Revenue Backlog On 8 September 2026, Biocon announced a partnership with Bahiafarma, a public pharmaceutical laboratory in Brazil, and Bionovis for pertuzumab under Brazil's ten-year Productive Development Partnership (PDP) programme. The consortium received 100% allocation under the programme, which provides access to Brazil's public healthcare market, accounting for approximately 70% of the country's pertuzumab demand.

Biocon expects to receive milestone payments and a share of revenues over the programme's ten-year period, alongside phased localisation of production in Brazil. This gives the company a defined route into a large public healthcare channel. However, the announcement did not disclose the contract's total value, minimum purchase commitments, annual sales forecast or expected profit contribution. Programme allocation is therefore not equivalent to a guaranteed volume of sales or a quantified revenue backlog.

Pebrilzo's Regulatory Milestone and the October Patent Settlement On 21 September 2026, the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommended marketing authorisation for Biocon's pertuzumab biosimilar, Pebrilzo, as a 420 mg concentrate for infusion. The recommendation was an important regulatory step, but it was not itself final marketing authorisation. A further development came on 14 October 2026, when Biocon announced a global patent settlement and licensing agreement with Genentech covering Pebrilzo.

The agreement secured the earliest licensed launch dates of the first quarter of calendar year 2027 in the European Union and United Kingdom, the third quarter of calendar year 2028 in the United States, and dates during 2026–2028 in other markets, subject to the relevant regulatory approvals. The remaining agreement terms were confidential. The Next Wave: Immunotherapy Biosimilars and Pipeline Execution Biocon Biologics laid out plans for new additions to its oncology portfolio, including nivolumab, pembrolizumab and a subcutaneous trastuzumab/hyaluronidase formulation, at the J.P.

Morgan Healthcare Conference in January 2026. Nivolumab and pembrolizumab are PD-1 inhibitors, while the proposed trastuzumab formulation relates to an established HER2-targeted treatment approach. The company also stated that its existing oncology portfolio comprised 17 medicines, including pertuzumab and several small-molecule cancer therapies. These opportunities could broaden Biocon's exposure to advanced cancer treatments, but pipeline breadth should not be confused with near-term commercial revenue.

Each candidate has its own development, regulatory and market-entry requirements. Q1FY27: Stronger Biopharma Revenue, but No Oncology-Only Breakdown Biocon reported consolidated revenue from operations of ₹4,336 crore for Q1FY27, up 10% on a year-on-year basis. Net profit rose to ₹141 crore from ₹31 crore. Biosimilars revenue increased 16% year-on-year to ₹2,855 crore, while generics revenue rose 21% to ₹760 crore.

Combined biopharma revenue reached ₹3,615 crore, up 17%. Services revenue, mainly associated with research services, declined 16% to ₹736 crore. These figures show the broader financial context in which the oncology portfolio operates, not the standalone contribution of cancer medicines. in On 23 October 2026, Biocon's share price closed at ₹323.50 on the NSE, with a trailing P/E ratio of 98.25 times.

The stock had declined 9.65% over six months and 17.68% year-to-date. These returns contrast with the positive developments in its oncology portfolio, showing why corporate progress and share-price performance should not be treated as the same measure. Motilal Oswal retained a Buy rating on 6 August 2026, with a target price of ₹520, citing growth in biosimilars and generics. At ₹323.50, that target implies approximately 65% upside.

The Roadblocks Between a Promising Cancer Drug and Profitable Growth India's rising cancer burden creates a growing need for effective treatments, but it does not automatically translate into a larger addressable market for every pharmaceutical company. Precision oncology relies on matching the right treatment to the cancer biology of the patient. When appropriate diagnostic tests are not available, are not affordable, or are delayed, there is little commercial opportunity.

Research and development costs create a separate challenge. Developing a novel cancer medicine requires evidence of safety and effectiveness, while biosimilar development requires demonstrating sufficient similarity to an established biological medicine under the applicable regulatory framework. Clinical delays, unsuccessful studies or additional regulatory requirements can postpone commercialisation and leave development costs unrecovered.

For readers, this makes the maturity of each product important: a medicine already being sold has a different risk profile from a candidate that still requires regulatory approval or market entry. Companies also need to balance investment in future products against the cost of maintaining existing manufacturing and commercial operations. Price competition tends to erode the financial benefit of wider access.

Biosimilars can lower treatment costs, but competing products can drive selling prices and margins down. The company might be broadening its product line or expanding its markets. This does not always translate to more earnings. Hospital purchasing decisions, public tenders, reimbursement arrangements and competing therapies can influence both volumes and prices. The Cancer-Care Opportunity: Where Scientific Progress Must Meet Financial Reality From a reader’s perspective, the bigger story is how India’s pharmaceutical companies can turn advances in cancer treatment into businesses that deliver dependable returns.

Scientific progress alone is not enough. The real test is whether companies can make complex medicines commercially viable while managing development costs, pricing pressure and the demands of international markets. Readers should distinguish between businesses with established products and those whose future depends on regulatory decisions or launches still some distance away. Another important consideration is how much each company’s wider business can support investment in newer treatments without putting pressure on financial performance.

Partnerships can open doors, but their value ultimately depends on commercial terms and execution. Rather than treating every oncology announcement as a growth trigger, readers should look for sustained earnings, sensible capital allocation and evidence that innovation is strengthening the business. It may be a good idea to add these stocks to your watchlist and keep track to see how they perform in time to come.

This article is strictly for educative purposes only. Rishabh Sinha is a seasoned financial content creator with over 10 years of experience in BFSI domain. His portfolio spans over 20 of India’s most trusted financial brands. Rishabh brings depth, structure, and a reader-first approach to every piece he crafts. Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

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