Biocon Biologics eyes GLP-1 diabetes drug opportunity, says insulin expertise offers an advantage

Biocon is preparing to enter the fast-growing market for GLP-1 receptor agonists, a class of drugs used to treat diabetes and obesity that includes blockbusters such as Ozempic and Mounjaro, as the company seeks to tap one of the pharmaceutical industry’s fastest-growing segments.

Shreehas Tambe, Chief Executive Officer (CEO) and Managing Director of Biocon Biologics, and CEO designate Biocon Ltd, said the companies currently leading the GLP-1 market, Novo Nordisk and Eli Lilly and Company, have historically built their diabetes businesses around insulin.

“There is a common foundation, strong capabilities in insulin R&D, manufacturing, device development and relationships with prescribers,” Tambe told Business Today. “Biocon is uniquely positioned because we have both a biosimilar insulin portfolio and a GLP-1 pipeline, allowing us to address diabetes care across multiple therapies.”

Biocon Biologics is among the leading global suppliers of biosimilar insulins and has been expanding its portfolio of biosimilar monoclonal antibodies and therapeutic proteins across several therapeutic areas.

GLP-1 receptor agonists have emerged as one of the fastest-growing segments of the global pharmaceutical market, driven by rising demand for treatments for diabetes and obesity. Analysts estimate the global market for GLP-1 therapies could exceed $100 billion by the end of the decade as demand for weight-loss and diabetes drugs continues to rise.

Analysts at ICICI Securities said in a recent research note that Biocon has already built adequate manufacturing capacity to tap opportunities in GLP-1 therapies and has filed semaglutide across markets such as Brazil and Canada.

Biocon has been expanding its presence in this space as part of a broader strategy to strengthen its diabetes portfolio. The company recently received regulatory approvals for generic Liraglutide, a GLP-1 therapy used for diabetes and weight management, in several markets outside India, most recently in the U.S.

At the same time, the company is preparing a broader set of launches in key markets as it expands its biosimilars portfolio.

The company is executing a series of product launches in the United States, covering oncology, immunology and diabetes therapies.

These launches include a rapid-acting insulin analogue, Tambe said, reflecting the company’s continued focus on insulin-based treatments alongside newer drug classes.

“The last 12 months have been remarkable for us. We have received several approvals and now have multiple products entering the US market,” Tambe said.

Biocon Biologics has been expanding its presence in the United States, one of the largest markets for biologic medicines, with a growing portfolio of biosimilars used in treatment of cancer, autoimmune diseases and ophthalmology conditions.

According to Tambe, biosimilars are expected to see significant growth in the coming years as more biologic medicines lose patent protection.

“Among the top-selling medicines globally, a majority are biologics. As these lose exclusivity, they will open the door for biosimilars,” he said.

Industry estimates suggest more than $70 billion worth of biologic medicines could lose patent protection over the next decade, creating significant opportunities for biosimilar manufacturers.

“The next decade will clearly belong to biosimilars,” Tambe said.

Biocon Biologics has reported steady growth in recent quarters. In the most recent quarter, the company recorded 9% growth in revenue and a 44% increase in EBITDA, continuing a series of quarterly gains. Tambe said the company expects EBITDA margins in the mid-20% range on a full-year basis.

Biocon Biologics has also undergone corporate changes following the integration of the biosimilars business acquired from Viatris in 2022.

Biocon Limited has since moved to consolidate ownership of the subsidiary by acquiring minority shareholdings. The integration of Biocon Biologics into Biocon is a strategic step that brings together the biosimilars and specialty generics businesses on a single, globally scaled platform.

Biocon Limited now holds about 98–99% of Biocon Biologics and expects to complete the acquisition of the remaining employee trust stake by June, after which the biosimilars business will become a wholly owned subsidiary.

Biocon has raised close to $1 billion through two qualified institutional placements (QIPs), with the proceeds used to retire structured debt and buy out minority stakes in Biocon Biologics. Tambe said the capital raise also gives the company greater financial flexibility to invest in product development, manufacturing capacity and future biosimilar opportunities.

Biocon Biologics currently serves patients across more than 120 countries, with its portfolio focused on therapies for cancer, diabetes, autoimmune diseases, ophthalmology and bone health.

“Our mission remains focused on expanding access to these therapies for patients globally,” Tambe said.