Biocon Limited

The Biocon Group delivered a progressive Q3 FY25, achieving a 10% year-on-year operating revenue growth on a like-for-like basis, reaching INR 3,821 crore. This performance was in line with expectations, driven by sustained growth in Biosimilars and a return to growth in Research Services. Group core EBITDA stood at INR 1,007 crore, up 4% YoY, with a margin of 26%. The company maintains its outlook for a transition to growth in the second half of FY25 and into the next fiscal year, with improved visibility across all businesses.

The Generics segment reported revenue of INR 686 crore, experiencing a marginal 2% decline year-on-year but a healthy 10% sequential growth. This sequential improvement was primarily fueled by higher API sales and better performance in generic formulations. Core EBITDA for Generics was INR 102 crore (15% margin), though reported EBITDA was lower at INR 39 crore (5% margin) due to operating expenses for new facilities and increased R&D. Future growth is expected from new product launches, including the GLP Liraglutide in the UK and EU in Q4 FY25, and additional launches in the US.

Biocon Biologics demonstrated strong performance with INR 2,289 crore in revenue, marking a 14% year-on-year like-for-like growth and 5% sequential growth. The segment's EBITDA was INR 487 crore, with a 22% margin excluding Forex impact. The company saw significant market share increases in the US, with Ogivri doubling to 22% and Fulphila rising to 23%. Stable market shares were maintained in Europe, with strong uptake in Germany and France, and positive traction in Japan and Australia through commercial partnerships.

Syngene International returned to growth in Q3 FY25, with revenue from operations reaching INR 944 crore, up 11% year-on-year and 6% sequentially. Reported EBITDA for Syngene was INR 302 crore, a 16% increase YoY, with the margin improving to over 31%. Profit before tax grew 27% YoY to INR 181 crore. The growth was broad-based across all divisions, suggesting that market dynamics, particularly in US biotech, are stabilizing, albeit slightly later than initially expected.

Biocon achieved critical regulatory milestones, including successful US FDA inspections of its Bengaluru API sites and insulins facilities in Johor, Malaysia, both receiving Voluntary Action Initiated (VAI) status. This outcome is expected to pave the way for US approvals of biosimilar Bevacizumab and Aspart. The company also secured US FDA approval for Yesintek (biosimilar Ustekinumab), with launch planned for February 2025, and received EU approval for GLP Liraglutide, positioning it for commercialization in fiscal 2026.

The group's net debt stands at approximately USD 1.23 billion. Biocon increased its stake in Biocon Biologics by 1.5% to meet an investor's liquidity option, bringing its holding closer to 72%. The remaining USD 160 million of deferred milestones under the Viatris acquisition agreement were fully settled using existing liquidity sources. Management reiterated its commitment to debt reduction, acknowledging it will be a balancing act with ongoing investments in future growth opportunities.