Why Biocon is expanding in the US with a $30 million generics plant

Biocon is aiming to support its generics business while complementing the momentum of its biosimilars segment. The company has expanded its U.S. operations with the opening of a manufacturing facility in Cranbury, New Jersey, through its wholly owned subsidiary, Biocon Generics Inc. For the company, the investment represents a step toward balancing its global ambitions with a stronger local presence in its largest generics market.

The move comes at a time when the US remains the world’s largest market for generics and biosimilars, valued at about $139 billion in 2024 and projected to reach $231 billion by 2034, according to Precedence Research. Generics and biosimilars already account for 90% of prescriptions filled in the country, saving the healthcare system more than $400 billion in 2022, as per the US Generic & Biosimilar Medicines Association.

The company has invested over $30 million to upgrade the Oral Solid Dosage plant it acquired from Eywa Pharma in 2023. The site has an annual production capacity of two billion tablets and is intended to diversify Biocon’s manufacturing base while strengthening supply reliability in its largest market.

Some products have already been commercialised from the facility, with more expected in the pipeline. Biocon said that operating closer to the U.S. market will enable faster access to therapies, shorter lead times, and quicker response to healthcare providers and patients.

“Biocon’s first US FDA-approved formulations facility in New Jersey marks a new chapter in our journey of global expansion. More than a milestone, it is a reaffirmation of our purpose to serve patients wherever they are,” said Kiran Mazumdar-Shaw, Chairperson, Biocon Group.

For Biocon, which has established a presence in the U.S. biosimilars space with products like pegfilgrastim and trastuzumab, the local capacity is expected to strengthen supply resilience, reduce lead times, and position it competitively in a market where both demand and pricing pressures are high.

Siddharth Mittal, Chief Executive Officer and Managing Director, Biocon Ltd, said: “The proximity allows us to deliver our vertically integrated medicines more efficiently to patients across the United States and other markets, ensuring supply chain resilience and enabling us to advance our mission of expanding access to affordable therapies worldwide.”

The expansion comes at a time of strong financial performance. Biocon reported consolidated revenue of ₹15,621 crore in FY24, up 35 per cent year-on-year, with EBITDA increasing 44 per cent to ₹4,164 crore. In the first quarter of FY26, operating revenue was ₹3,942 crore, a 15 per cent increase over the same period last year, while EBITDA rose 19 per cent on a like-for-like basis. Biocon Biologics, its biosimilars subsidiary, crossed $1 billion in revenue in FY24, a 58 per cent increase compared to the prior year.

Brokerages expect the company’s near-term financial performance to benefit from the U.S. expansion and new product launches. “Management expects FY26 to deliver strong double-digit revenue growth, driven by continued momentum in Biosimilars, a recovery in Generics margins from H2, and steady CRDMO expansion. In Biosimilars, recent launches (Yesintek, Yesafili) and upcoming rollouts (Bevacizumab, Insulin Aspart, Denosumab) are expected to accelerate growth, supported by operating leverage and economies of scale,” said Aman Goyal, Research Associate at Axis Securities.

He added: “The Generics segment is projected to improve profitability in the second half as new launches ramp up, including Liraglutide (EU/US), Sacubitril/Valsartan, Everolimus, and multiple injectables, offsetting the fixed-cost impact from newly commissioned facilities.”