Siddharth Mittal, managing director and chief executive officer of Biocon, said, “For generics, we will be looking at $50 million capex next year and with that, majority of our ongoing capex programmes will come to an end and there will be a small bit of maintenance capex going forward.”
Biocon had on Thursday announced its fourth quarter result with a 153% surge in net profit to Rs 344 crore, while consolidated total revenue for Q4 was Rs 4,454 crore, a growth of 12% the previous year.
“This quarter’s performance was bolstered by strong growth in generics, steady progress in biosimilars and ongoing traction in research services,” Kiran Mazumdar-Shaw, chairperson, Biocon Group, said at the analyst call.
During the quarter, Biocon launched lenalidomide – a medication used to treat types of multiple myeloma – and oncology drug dasatinib in the US, and anti-diabetes medication liraglutide in the UK.One of the primary focus areas for the company going ahead will be its peptide portfolios, especially GLP1s which it sees as the key driver of future growth.The company is also betting big on its biosimilars that continued to build shares in global markets with four biosimilars recording sales of $200 million each in FY25.
It plans to launch oncology drug bevacizumab in the US in the first half of this year when it also expects approval for diabetes drug insulin aspart, according to Matthew Erick, chief commercial officer – advanced markets at Biocon Biologics. “We have an incredible oncology portfolio and it will be a nice addition to our portfolio and we will be well positioned with our sales force,” he said.
It has already launched yesintek (biosimilar Ustekinumab), one of the first biosimilars to Stelara in the US.
Analysts have maintained a strong near-to-mid-term outlook on the company based on multiple recent product launches and planned launches this year.
“Biocon Q4 result was strong and just in line with our estimates, driven by the launch of gRevlimid and Dasatinib in the US,” PhillipCapital’s pharma analyst Surya Patra said in a report.
He said they remain optimistic about the company, citing a strong biosimilar pipeline and recent clearance of Bengaluru and Malaysia facilities, “paving the way for the launch of Bevacizumab, Insulin aspart biosimilars in the US.”
Additionally, the recent launch of ustekinumab biosimilar (a drug used to treat autoimmune conditions) and strong positioning of biosimilar aflibercept (used to treat eye conditions) in the US augurs well for the company, Patra added.
It received approvals for liraglutide in the EU, and everolimus (Zortress) tablets in the US. It partnered with Civica Inc, a US-based not-for-profit, supporting affordable insulin access for people with diabetes.
“With a surge in global insulin demand, given our global scale manufacturing capacities, we are well-positioned to capitalise on this large opportunity,” Shaw said.
During the quarter, the company’s arm Syngene expanded its biologics manufacturing footprint through an acquisition of a facility in the US.
The company is also looking at raising Rs 4,500 crore through a combination of QIP and private placement. The proceeds of the funds raised will be primarily used to meet financial obligations towards commitments and put options from the structured debt that the company has from investments in its biologics unit.
