Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Biocon Ltd (BOM:532523, Financial) reported operating revenue growth of 4%, with an 8% increase on a like-for-like basis after adjustments.
- The biosimilars business showed healthy double-digit growth, with significant market share increases in the US for products like Ogivri and Fulphila.
- Successful refinancing of long-term debt by Biocon Biologics through a bond issue and a new syndicated loan facility on improved terms.
- Biosimilar revenue from operations grew 19% on an adjusted basis, reflecting strong underlying profitability.
- Biocon Biologics continues to expand its global footprint, achieving double-digit growth in the UK and Mediterranean regions.
Negative Points
- Overall performance was relatively muted due to continued pressures in the generic business and a marginal decline in Syngene's revenues.
- The generics business faced an 8% year-on-year revenue decline, impacted by demand and pricing challenges.
- Reported net loss for the quarter was INR16 crore, attributed to higher tax basis and geographical profit splits.
- US FDA inspections at two API facilities resulted in observations, requiring corrective actions and awaiting feedback.
- The company is facing challenges in ramping up market share in the Humira biosimilar market in the US.
Q & A Highlights
Q: Can you provide a breakdown of Biocon Biologics' revenue by region for the quarter?
A: Kedar Upadhye, Chief Financial Officer, explained that approximately 40-41% of revenues come from North America, about 30% from Europe, and the remaining 30% from emerging markets.
Q: What is the R&D spend for Biocon Biologics this quarter?
A: Kedar Upadhye stated that the R&D spend for Biocon Biologics was approximately $17 million, or a little over INR140 crores for the quarter.
Q: Why has there been an increase in net debt despite receiving proceeds from Eris?
A: Kedar Upadhye noted that while there was an increase in net debt, the biologics net debt improved by about $50 million. CapEx remains in the range of $90 million to $100 million, with half for maintenance and half for expansion.
Q: Is the VAI status for the Bangalore facility a step towards approval for pending products?
A: Shreehas Tambe, CEO and Managing Director, clarified that the VAI status is a positive outcome for the recombinant human insulin drug substance facility, but the outcome for other inspections, such as for bevacizumab, is still awaited.
Q: What are the key catalysts for Biocon's biosimilar business over the next few years?
A: Shreehas Tambe highlighted that Biocon expects to launch five or more products, including aspart and bevacizumab, in the near to mid-term, with significant opportunities in Europe and other geographies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
