Biocon, one of India's largest biopharma firms, is shifting its strategy for its biosimilars business. Chairperson Kiran Mazumdar-Shaw has said that while the long-awaited IPO for the biosimilars division is now in abeyance, the firm is looking instead to a possible merger in its biosimilar operations. This is being done at a time when integration efforts continue, stake buybacks have happened in recent times, and there is an ambitious expansion plan abroad.
IPO Plans Delayed
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Biocon had earlier planned a public listing of its biosimilars business by March 2026 to unlock value and drive greater growth.
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The IPO timeline has been pushed further with the company now focusing on internal consolidation and complete control over its biosimilars operations before listing.
Biosimilar Unit Merger in the Limelight
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The company is looking to merge its biosimilar units to consolidate operations and consolidate its market position before any public issue.
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Integration of the acquired businesses, including Viatris' biosimilars business, is in the final stages, which is viewed as a prerequisite for the long-term listing plans.
Stake Buyback and Consolidation of Owners
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Biocon recently purchased a 1.5% investor holding in Biocon Biologics for Rs 550 crore, bringing its ownership to 90.2%.
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The buyback is part of a larger strategy for consolidating control over the biosimilars business ahead of future st
Expansion and Market Growth
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Biocon is eyeing a double-digit market share in the U.S. for five new biosimilars that will be introduced next fiscal year, with follow-on launches to be scheduled for Europe.
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The U.S. presently contributes approximately 40% to Biocon's revenues, while Europe provides 35%.
Strong Biosimilar Pipeline
The biosimilars business has a portfolio of 28 molecules and is working on expanding into new therapeutic areas including diabetes, oncology, and immunotherapy.
Financial Performance and Outlook
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In spite of a steep year-on-year decline in net profit for Q3 FY25, Biocon's revenue and EBITDA have increased due to rising biosimilar market share and strategic approvals.
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The company remains positive about future growth, driven by new launches and positive regulatory developments.
Strategic Rationale
Kiran Mazumdar-Shaw stresses a well-balanced portfolio, as Biocon's structure provides options for investors to pick and choose between pure-play biologics, generics, or research services.
Its ongoing emphasis on internal consolidation and geographical expansion is likely to make Biocon Biologics a world leader in affordable biologic therapies.
Sources: 5Paisa, Economic Times, CNBC TV18
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