Biocon Biologics, arm of biopharmaceutical major Biocon, which posted strong revenue growth of 31 per cent for the December quarter of FY20, will continue to be the growth driver for the Bengaluru-based company for the rest of the year, said its Chairperson and Managing Director Kiran Mazumdar-Shaw.
Also, the US will be the biggest driver to achieve a revenue target of $1 billion by FY22 for the biologics business, said the CEO of the subsidiary, Christiane Hamacher. This will be followed by Europe and other global markets.
“What is really encouraging is that a double-digit market share from biosimilar molecules in the US is achievable. There is a much more disciplined play (in the US market) when it comes to price and price erosion,” said Hamacher during an investor call on Friday.
The company is uniquely positioned in the US as it is the only Indian pharmaceutical firm with two commercialised biosimilars in the market, namely Pegfilgrastim and Trastuzumab. While Fulphila, co-developed by Biocon and its partner Mylan, was the first biosimilar pegfilgrastim to be approved in the US and was commercially launched in 2018, the Trastuzumab biosimilar Ogivri was made commercially available in December last year. Biocon is also betting big on insulin glargine biosimilar, which is likely to be approved in the US market in the second half of 2020.
According to reports, the US biosimilar market is poised to take off soon and is anticipated to report a compound annual growth rate (CAGR) of 54 per cent between 2018-2026.
Biocon recently sold 2.44 per cent stake in the Biologics arm for around $75 million to private equity (PE) firm True North. The company, which is eyeing an initial public offering (IPO) within the next three years to unlock the value in the subsidiary, is looking to raise $200-300 million in total. This will help the company get a baseline valuation for the business before an IPO.
“We have been talking to a few PE investors and True North has been first of the block. We expect others to follow,” said Shaw.
Source: Business Standard
