Biocon Eyes Biosimilars Business Expansion With Launch Of New Products In US, Europe

Biocon Ltd. is hopeful of expanding its presence in the biosimilars segment on the back of new product launches in the long run, according to Group Chief Executive Officer Peter Bains. Biosimilars, the largest business of the Biocon Group, posted 11% year-on-year revenue growth in the first quarter of fiscal 2025 on a like-for-like basis.

The company will be able to maintain this growth trajectory and even expand with the launches of new products in the American and European markets in the next two to three years, Bains said.

"We have grown 11% through a growing market share in markets like the USA, stable market share performance in Europe and good growth in the emerging markets coming from existing products and extending our reach. Looking forward to seeing the traction this year and beyond that, the growth will be driven by the product that we are planning and that's exciting with five new products in the next two years—two in the US and three in Europe," he told NDTV Profit.

Biocon’s margins in the first quarter dropped to 18.1% from 20.9% in the year-ago period as employee expenses rose to 22% of revenue. 

Bains remained confident of addressing the margin squeeze and high employee expenses in the second phase of this year. He said that the company has completed the transition phase, which should bring down several one-time costs.

“We are consolidating the business this year but there are good transactions in the comparable growth seen in Q1. That will transition into acceleration with the introduction of new product flows. And that will expand the margin,” he said.

Biocon reported lower-than-expected performance in the April-June quarter, missing analysts' estimates.

The company's consolidated revenue from operations remained flat in Q1 at Rs 3,432.9 crore, compared to Rs 3,423 crore a year ago. Analysts had projected revenue of around Rs 3,950 crore for the company.

The company's net profit jumped fivefold, surpassing analyst estimates on account of other income of Rs 1,135 crore. The strategic collaboration between Biocon Biologics Ltd. and Eris Lifesciences Ltd. contributed to higher than usual other income in the first quarter.

The company posted a consolidated net profit of Rs 660 crore in Q1, against Rs 101 crore in the year-ago period.

Shares of Biocon were trading 1.36% lower at Rs 334.6 apiece on the BSE at around 2:50 p.m.