Biocon targets $200 mn revenue from biosimilars
Biotechnology major Biocon is aiming to register 66 per cent growth in its biologics business this fiscal, which the company hopes will help it clock a revenue of $200 million on the back of emerging markets growth.
Its current revenue from the biosimilars market is around $120 million. In the last six months, the company (along with its partner Mylan) has made significant progress on the regulatory front in the US and EU markets and has built a biosimilars pipeline. However, it is still some time away for these markets to drive growth. The company feels that developed markets would drive revenue growth in the next three years.
Building on its India experience, the Bengaluru-based firm has been unlocking value in other emerging markets with Recombinant Human Insulin (rh-insulin), which has already been approved in 60 countries. The approval of Mylan and Biocon’s biosimilar insulin Glargine in about 25 countries will also be a revenue driving force, chief executive officer Arun Chandavarkar told Business Standard.
Besides expansion of territories, another factor that will help the company meet the $200 million target is the integrated insulins manufacturing facility in Malaysia which has got regulatory approvals from various emerging markets.
“Relying only on our Bengaluru facility was proving to be a constraint in our services to meet the growing needs of insulin. The Malaysia facility will cater significantly to emerging markets, helping us expand the geographic footprint for insulin,” said Chandavarkar.
In the first quarter of this financial year, the biologics segment recorded a revenue growth of 36 per cent at ~2.5 billion. This came on the back of biosimilar sales as Biocon’s novels such as the oral insulin are still along way from commercial is at ion.
Another driver for growth will be biosimilar Trastuzumab, used for the treatment of breast and stomach cancer. It witnessed a strong retail market uptake in Brazil, one of the top four emerging markets for this drug globally. It is gaining traction in other emerging markets, according to the company.
However, tender-driven emerging markets are a threat to the revenue numbers of the company. “The outcome of tenders is always binary and depending on where we stand in winning certain tenders, it is bound to impact some of our revenue growth,” added Chandavarkar.