Biocon: Multiplier Effect

Biocon is a prominent global biopharmaceutical company driven by innovation, specialising in therapies for chronic conditions such as diabetes, cancer, and autoimmune disorders. With a robust portfolio that includes novel biologics, biosimilars, and complex small molecule active pharmaceutical ingredients (APIs), Biocon has established its presence in India and several key international markets. The company also offers generic formulations in the United States, Europe, and emerging markets, and boasts a promising pipeline of novel assets focused on immunotherapy currently under development.

Over the past 45 years, Biocon has strategically diversified its operations, transforming into a comprehensive biopharmaceutical enterprise. This evolution has enabled the company to provide a wide range of generic and biosimilar products, along with research services, to promote health equity globally. The company’s balanced risk strategy has resulted in a ‘multiplier effect,’ fostering business expansion and unlocking value across its various segments.

Growth And Duty

Siddharth Mittal joined Biocon in May 2013 as President & CFO, advancing through various roles. With over two decades of global experience in strategic finance and management, he initially focused on the biosimilar business. After Biocon Biologics' spin-off in 2019, he shifted to lead the Generic Formulations sector, expanding the portfolio to over 20 products in various markets.

Mittal, CEO and Managing Director of Biocon, shared insights into the company’s performance earlier this year. "We concluded FY24 with the Generics business posting modest revenue growth. Generic Formulations reported a healthy 36 per cent increase, as our products, particularly statins and immunosuppressant’s, gained traction across multiple geographies," he noted. However, this positive momentum was tempered by a decline in API revenues due to pricing pressures that affected demand.

For the full fiscal year 2024, Biocon reported a remarkable consolidated revenue growth of 35 per cent, reaching Rs 15,621 crore, alongside an EBITDA growth of 44 per cent at Rs 4,164 crore, resulting in healthy EBITDA margins of 27 per cent. This robust growth trajectory was primarily fueled by the biosimilars segment, which alone grew by an impressive 58 per cent, contributing Rs 8,824 crore to the overall revenue. Mittal emphasised the company’s forward-looking approach: “Our focus in FY25 will be directed towards launching new products and expanding our geographic reach through direct presence and strategic partnerships. We will continue to focus on multiple cost improvement initiatives.”

Reflecting on the strategic initiatives undertaken over the past five years, Mittal highlighted the successful conclusion of a plan initiated in 2019, which laid the groundwork for future growth. During this period, Biocon strengthened its research and development capabilities, expanded its product pipeline—particularly in peptides, highly potent APIs (HPAPIs), and fermentation—and enhanced its manufacturing capacities. The company also simplified operational processes and successfully implemented various digital transformation initiatives. "We have our strategies in place for the next five years and are well poised to exploit the tremendous opportunities that exist in the market," he stated.

Looking ahead, Biocon plans to bolster its core business while implementing cost improvement initiatives and launching new products in key markets. Leveraging the momentum gained from recent regulatory successes, particularly in peptide and GLP-1 focused products, the company aims to accelerate new product filings and approvals in strategic markets. This approach is expected to deliver long-term growth and unlock significant value for shareholders, solidifying Biocon's position as a leader in the biopharmaceutical industry.