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Informist, Friday, Jan. 31, 2025

--Biocon: To launch GLP-1 injection Liraglutide in US, Europe in FY26

--CONTEXT: Comments by Biocon management in post-earnings analyst call

--Biocon: Getting ready to grab first wave of GLP-1 opportunity

--Biocon: GLP-1 product launches will happen in a phased manner

--Biocon: Recovery of generic ops led by GLP-1 product launches in US, UK

--Biocon: Expect growth in Jan-Mar to be led by base built in Oct-Dec

--Biocon: Growth beyond Jan-Mar to be led by new product launches

--Biocon: Strong show in US led by market share gains for key pdts in Oct-Dec

--Biocon: Biotech business in US stabilising

--Biocon: Price erosion of generic products in US in line with expectations

--Biocon: Syngene Intl signalling return to growth across all divisions

--Biocon: CDMO operations helped arm Syngene's growth in Oct-Dec

--Biocon: Gearing for global launch of biosimilar Ustekinumab

--Biocon: Biosimilar ops to maintain strong growth momentum going ahead

--Biocon: Will continue to invest 7-9% of sales on R&D

By Narayana Krishna and Alina Geogy

HYDERABAD/MUMBAI - Biocon Ltd. on Friday said it is gearing up to launch its GLP-1 products from 2025-26 (Apr-Mar) onwards, with products like Liraglutide and Semaglutide, to grab the upcoming opportunity in this category.

Pharmaceutical companies across the globe are getting ready to launch their respective versions of GLP-1 products, primarily used to treat disorders related to diabetes and obesity. The market for this category of products will be crowded by FY27-FY28, as more and more companies are expected to come up with their generic versions of this drug, Biocon said in a post-earnings conference call.

Biocon said the growth in its generic business is expected to be driven by GLP-1 products in the coming years. It said product launches in this category will be done in a phased manner, and that it has global potential. The company is planning to launch GLP-1 products in the US, as well as in the European region. Filing for the same with respective regulatory agencies is in progress, the company's management said. The Liraglutide injection, which is used to treat diabetes-related issues, will be launched in the US and Europe in FY26. After the US and Europe, the company sees Canada as a large market for this product category. Liraglutide and Semaglutide are expected to contribute to the company's revenue growth for two-three years once launched in FY26, the company said, adding that it has significantly high capacity to meet the supply demand for these products.

On Thursday, the Bengaluru-based biopharmaceutical company reported a 96% on-year decline in its consolidated net profit to INR 251 million for the December quarter, while revenue fell 3.4% to INR 38.21 billion. The company said it will continue to invest 7-9% of its total sales on research and development.

Biocon's management said the base created during the December quarter will help the company report continuous growth in its earnings in Jan-Mar and beyond, as all business segments have enough visible opportunities to drive growth. A number of product launches are lined up for next year, which will boost the company's generics business.

Biocon said the price erosion in the US for the December quarter was on expected lines and US sales growth was mainly aided by a gain in market share in some key products. "Growth in the quarter (Oct-Dec) suggests that market dynamics, particularly in US biotech, are now stabilising, albeit slightly later than expected," the company said. Sales in the US market are the largest contributor to Biocon's earnings, particularly the biosimilars segment.

The company said its listed arm Syngene International Ltd. returned to a growth trajectory in the December quarter and is well positioned to continue its growth journey. Some of the pilot projects in the contract development and manufacturing organisation segment are now getting converted into long-term projects, providing visibility for future growth for Syngene, the management said.

Expressing confidence regarding the growth prospects of the biosimilars business, a key revenue generator for the company, Biocon said its biosimilar drug Ustekinumab, used to treat immunity-related issues, will be launched globally and will be a big growth driver in the coming years.

At 1122 IST, shares of Biocon traded at INR 364.40, up 2.1%, on the National Stock Exchange. The stock extended gains for the second consecutive session Friday. It has gained 15% in around three months, though it has risen only marginally this month.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Namrata Rao

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