Biocon’s biosimilars business crossed the $1 billion revenue-mark in FY24. In an interview with the FE, Biocon Biologics CEO and MD Shreehas Tambe discussed how the company was able to maintain its revenue growth momentum in a year that saw it successfully implement an accelerated and complex integration of the business acquired from Viatris. Excerpts.
Having completed the integration of the acquired biosimilars business, have you started realising the benefits envisaged from the acquisition?
Biocon Biologics has successfully transitioned from a B2B to B2C company following the integration of the acquired business. While our customers and patients have always appreciated us as a science and operations company, the acceptance of our products as reflected in increased market shares indicates we have also been able to earn their trust as a fully integrated biosimilars player with our own commercial front-end. Our key products reported market share improvements coupled with significant volume growth in the US, Europe, and emerging markets in Q4, which was the first quarter where Biocon Biologics directly managed the acquired business across 120+ countries.
What are the factors behind the market share gains that you are reporting?
One of the key factors contributing to the improved market shares has been the benefits reaped from a fully integrated business model. We started transitioning the acquired business July 2023 onwards starting with 70+ emerging markets (EMs). We then transitioned the North America business in September 2023, and Europe, JANZ (Japan, Australia and New Zealand) and the remaining EMs came over in December 2023. This phase-wise integration instilled confidence among our customers in our integrated model where commercial teams were being supported by R&D and manufacturing teams. This set us apart from competitors.
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While you have done well on the topline, how are you placed in terms of profitability given the higher costs of running a global scale business?
We have delivered a 58% increase in FY24 revenue to Rs 8,824 crore, taking us past the $1-billion annual revenue mark. Our Ebitda rose 64% to Rs 2,190 crore, representing a healthy Ebitda margin of 25%, which is probably highest in the Indian pharma industry.
What is your growth outlook?
In FY24, the focus was on maintaining customer relationships and ensuring no disruption in service. Having completed a full quarter of business operations post-acquisition, the next four quarters in FY25 will be dedicated to consolidating the acquired business. Post-FY25, the focus will be on acceleration. This will be driven by new product launches planned for this year, which are expected to fuel growth in subsequent years. The ultimate goal is to transition from preserving value to consolidating it, and finally, accelerating growth. Our aspiration is to position Biocon Biologics among the top three biosimilars players globally.
From: financialexpress
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