- Total Revenue (Q4): INR 3,966 crores, up 1% year-on-year.
- Revenue from Operations (Q4): INR 3,917 crores, up 4% year-on-year.
- Group Core EBITDA (Q4): INR 1,176 crores, core operating margin of 30%.
- EBITDA (Q4): INR 964 crores, margin of 24%.
- Profit Before Tax and Exceptional Items (Q4): INR 328 crores versus INR 500 crores last year.
- Net Profit Excluding Exceptional Items (Q4): INR 144 crores versus INR 335 crores last quarter.
- Reported Net Profit (Q4): INR 136 crores.
- Total Revenue (FY24): INR 15,621 crores, growth of 35% year-on-year.
- Biologics Segment Revenue (FY24): INR 8,824 crores, growth of 58% year-on-year.
- Research Services Segment Revenue (FY24): INR 3,489 crores, growth of 9% year-on-year.
- Generics Segment Revenue (FY24): INR 2,799 crores, growth of 1% year-on-year.
- Group Core EBITDA (FY24): INR 4,195 crores, core operating margin of 29%.
- EBITDA (FY24): INR 4,164 crores, margin of 27%.
- Profit Before Tax and Exceptional Items (FY24): INR 1,537 crores, up 29% year-on-year.
- Net Profit Before Exceptional Items (FY24): INR 1,030 crores, up 31% year-on-year.
- Reported Net Profit After Exceptional Items (FY24): INR 1,022 crores versus INR 463 crores last fiscal.
- Generics Segment Revenue (Q4): INR 719 crores, 3% decline year-over-year, sequential growth of 2%.
- Generics Core EBITDA (Q4): INR 155 crores, margin of 21%.
- Generics Profit Before Tax (Q4): INR 50 crores.
- Generics Core EBITDA (FY24): INR 627 crores, margin of 22%.
- Generics Profit Before Tax (FY24): INR 234 crores, margin of 8%.
- Biosimilars Revenue from Operations (Q4): INR 2,358 crores, up 12% year-on-year.
- Biosimilars Core EBITDA (Q4): INR 698 crores, margin of 30%.
- Biosimilars Revenue from Operations (FY24): INR 8,824 crores, growth of 58% year-on-year.
- Biosimilars EBITDA (FY24): INR 2,190 crores, margin of 25%.
- Syngene Revenue from Operations (Q4): INR 917 crores, sequential growth of 7%, degrowth of 8% year-over-year.
- Syngene Revenue (FY24): INR 3,489 crores, growth of 9% year-on-year.
- Syngene EBITDA (FY24): INR 1,105 crores, margin of 31%.
- Syngene Profit Before Tax (FY24): INR 632 crores, up 6% year-on-year.
Release Date: May 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Biocon Ltd (BOM:532523, Financial) achieved a 35% year-on-year growth in total revenues for fiscal 2024, reaching INR15,621 crores.
- The Biologics segment saw a significant 58% growth in operating revenues, contributing INR8,824 crores.
- The company successfully completed the full transition of the acquired Biosimilar business globally, crossing the $1 billion revenue threshold.
- Biocon Ltd (BOM:532523) secured approval for liraglutide in the UK, marking the first generic approval of a GLP-1 receptor agonist in a major regulated market.
- Syngene, a segment of Biocon Ltd (BOM:532523), delivered a 9% year-on-year revenue growth, despite a sector-wide funding slowdown in research services.
Negative Points
- The Generics segment reported only a modest 1% year-on-year growth, impacted by pricing pressures and regulatory delays.
- Net profit for the quarter, excluding exceptional items, stood at INR144 crores, a significant drop from INR335 crores in the previous fiscal quarter.
- The biosimilar adalimumab market in the United States faced inertia, with no material opening expected until calendar year 2025.
- The company prepaid $250 million of acquisition-related debt, indicating a focus on debt reduction but also highlighting financial strain.
- R&D investments for the full year were INR1,154 crores, representing 10% of revenues, which could be seen as a high expenditure relative to revenue.
Q & A Highlights
Q: So my first question is on your commercial biosimilars in the US. What kind of further headroom do you see for growth and how should we see this biosimilar growth trajectory from $1 billion mark?
A: We are very pleased with the momentum we're seeing, only two quarters out from taking the business over in the United States. We're seeing robust market share increases driven by volume demand for our products, despite some pricing pressures. We expect new product launches to have a major impact in fiscal '26.
Q: Can you update us on your effort on the payer coverage side for adalimumab?
A: Adalimumab has been a success in Europe, and we aim to build on that in the US. We don't see the market opening up significantly until calendar '25. We are working to establish our foothold and build a stronger position through calendar '25.
Q: My first question is on denosumab. Do you believe that we will be in the first wave of launches?
A: Yes, we are in a good position to make the filings in the next few months and will be among the first cohorts to launch in the US and Europe.
Q: Any timelines for approval for both denosumab and Stelara, and any risks to those timelines?
A: The data looks good, and we are optimistic about the approval. The regular cycle is about 12 months for the FDA and about 15 months for the EMA.
Q: What's our growth guidance for the generics business and how many launches do we expect next year?
A: We expect growth driven by formulations, especially new formulation launches in the second half of the fiscal. We have made a large number of regulatory submissions and expect to see that momentum continue.
Q: What growth should one expect for the biosimilar portfolio in FY25?
A: We see strong momentum in the in-market products, including market share gains in the US, robust performance in Europe, and the highest ever quarter in emerging markets. We expect this growth momentum to continue during fiscal '24.
Q: Does the recent revenue decline in Humira indicate a shrinking biosimilar opportunity for adalimumab?
A: The adalimumab market in the US is still evolving. We expect meaningful progress on biosimilars in 2025 as formularies start excluding the originator and biosimilars secure exclusive or preferred coverage.
Q: Will the integration of the Viatris marketing arrangement lead to an increase in costs?
A: Yes, we are now carrying the cost of the commercial marketing team and activities, but we are capturing the full value of those efforts. There are no remaining marketing arrangements with Viatris.
Q: How should we think about net debt reduction for BBL and Biocon in the next year?
A: While debt reduction is a priority, we are comfortable with our ability to service all obligations. We have a range of options, including bank, equity, and hybrid opportunities, and will make debt reductions during the course of this year.
Q: What's the outlook for the debt?
A: We are comfortable in servicing the debt that we have but will be looking to reduce debt levels. We have a wide range of options and will make decisions as appropriate during the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
