Pharma major Biocon is preparing to accelerate growth, and CEO Siddharth Mittal confirms that all its business segments now align for expansion. “We have positioned all our business segments for growth,” Mittal said, adding that strong momentum will continue.
Q4 Profit Surges 153% YoY
Biocon reported a stellar financial performance in the March quarter, posting a net profit of ₹344 crore, marking a 153% year-on-year increase. This sharp uptick reflects both operational efficiency and strategic focus across its divisions.
Global Expansion Plans in Motion
Biocon is preparing to roll out products across new global markets, including Europe, the US, and other major emerging economies. The company sees significant opportunities in the peptides or GLP (glucagon-like peptide) segment.
Mittal noted, “We see huge growth potential in the GLP space.” Experts expect the global GLP market to reach $130–135 billion by FY29, with substantial opportunities continuing well beyond that period.
Peptides Market Offers Long-Term Upside
Biocon is closely watching when blockbuster drug patents expire. Semaglutide will go off-patent in the US and Europe by 2031, followed by Tirzepatide (Monjaro) after 2035. These expirations will open significant opportunities for biosimilar players like Biocon. In the short term, Biocon targets Liraglutide, which generates $2 billion in annual global sales, and Semaglutide in emerging markets, adding another $4–5 billion in addressable sales.
Strong Performance Across Business Segments
Biocon’s core segments demonstrated solid growth:
- Generics: Revenue surged 46%, led by strong demand for Lenalidomide in the US, as well as Dasatinib and Liraglutide in the UK.
- Biosimilars: Posted 9% year-on-year growth, driven by new launches in emerging markets, increased volumes of existing products, and rising market share in the US.
- Research Services: Delivered 11% growth, supported by growth in research contracts and large molecule manufacturing.
Capital Raise and Merger Plans Underway
To support future growth and provide exit options for private equity investors, Biocon’s board has approved a fundraising plan. As reported by thehindubusinessline.com, this will involve a mix of qualified institutional placements (QIP) and private placements. The first tranche is expected to close by the end of Q1 FY26.
In a strategic shift, the board is also evaluating a merger between Biocon Biologics and Biocon Ltd, scrapping earlier plans to list the biologics division independently. “While we are well-positioned, current capital market conditions are not conducive for a public listing,” Mittal explained. A board-appointed committee will now explore all strategic alternatives to unlock stakeholder value, with a merger being a key option under consideration.
