Biocon can become a billion-dollar company by 2018: Kiran Mazumdar-Shaw

Biocon will focus on niche areas to reach its goal of becoming a billion-dollar player by 2018, Kiran Mazumdar-Shaw, chairperson and MD, Biocon, indicated in a conference call with the media on Thursday after announcing the company's fourth quarter results.

Responding to a question from Business Today about the key growth drivers and the areas it is focusing on, Mazumdar-Shaw said the company was "doing very well on biosimilars", an important growth driver for the company. Mazumdar-Shaw said biosimilars was on track to contribute $200 million to the billion-dollar pie for the company in 2018-19.

Right now, the main biosimilars that are delivering value and growth for Biocon include its biosimilar Recombinant Human Insulin, she said. "We are also doing well in terms of biosimilars in the emerging markets, though of course our next big opportunity will be when we enter some of the developed markets...We have already indicated that 2017-18 is the kind of timeframe when we will enter these developed markets with some of these programmes," she added.

On the branded formulations business where the company is rationalising its presence to focus on some key areas, she said even this was expected to contribute $200 million dollars in the billion-dollar pie by 2018-19.

The company, Mazumdar-Shaw said, has taken a conscious decision not to be in all areas but to focus on its areas of strength, which are "diabetes, oncology and immunosuppressants and immune-therapy division, apart from focus on niche areas like nephrology," she said, adding: "That is how we are building ourselves into a specialty company and we do not want to be in everything and anything."

During the conference call, responding to a question on the impact that the Teva-Mylan deal could have on any of Biocon's programmes currently with Mylan, she said, "We do not see any risks. If you look at the Teva presentation that is in public domain, they have attributed huge value to Biocon's biosimilar programme and there will be continuity for Biocon's programmes with Mylan whether a deal between Teva and Mylan were to happen or not."

This morning, Biocon put out a press release on its financial results. The company's top line grew 15 per cent in the fourth quarter of 2014-15 with its research services delivering 27 per cent growth. For 2014/15, revenue was at Rs 3,143 crore with a profit after tax (PAT) at Rs 497 crore. Biocon's gross R&D spends increased 95 per cent from Rs 169 crore in 2013-14 to Rs 329 crore in 2014-15, she said.

The release quoted Mazumdar-Shaw as saying: "Biocon closed the year with a stronger performance in the fourth quarter on the back of a record quarterly performance by our research services subsidiary, Syngene and an improved performance of our biopharma business. We also recognised exceptional income from the sale of shares of Syngene." She added that the Malaysia insulins facility had been commissioned, which once qualified, would provided the company the scale to increase their presence and penetration in emerging markets and then in developed markets.

Highlighting the company's achievements, Shaw said Biocon had strengthened its presence in Mexico, having received Insulin Glargine approval through partner PiSA Farmaceutica. Also, Syngene has filed its Draft Red Herring Prospectus (DRHP) with Sebi for its Initial Public Offering (IPO).