Biocon Revenue Up 21% Thanks to Biosimilar, Generic Drug Successes

Biocon’s total revenue for the fourth quarter of the 2022 fiscal year (Q4 FY22) was up 21% from the same period of the year prior, largely due to significant growth in sales for the company’s biosimilar and generic drugs, according to Biocon's recent earnings report.

“FY22 was a transformational year for Biocon. Key strategic moves in our biosimilars business position us for long-term growth and value creation for our stakeholders,” said Biocon in the report.

Overall, the company generated Rs 8,397 Crore in revenue for FY22, equivalent to $1.1 billion. For the full FY22, biosimilars generated $448 million (Rs 3464 Crore) and generic drugs accumulated $303 million (Rs 2341 Crore).

Compared to Q4 FY21, revenue was up 48% for biosimilars and 26% for generics. More specifically, quarter-over-quarter biosimilar revenues increased from $86 million (Rs 664 Crore) to $127 million (Rs 982 Crore) and revenue for generics increased from $74 million (Rs 570 Crore) to $93 million (Rs 717 Crore).

The company's largest amount of spending was in research and development (R&D), which was up 70% compared with the same quarter last year, rising from $17 million (Rs 136 Crore) to $30 million (Rs 232 Crore).

Biocon Biologics, Biocon’s biosimilar subsidiary, has 8 biosimilars: a trastuzumab (Ogivri), a pegfilgrastim (Fulphila), a bevacizumab (Abevmy), an adalimumab (Hulio), an insulin glargine (Semglee), a recombinant human insulin (Insugen), an insulin aspart (Kirsty/Kixelle), and an etanercept (Nepexto). All are marketed in at least 1 country; 3 have launched in the United States and 7 are available in the European Union. Two are under FDA review.

“We have progressed well in the development of several next wave biosimilar programs, with 2 of our molecules entering the clinic. Whilst net R&D was at 9% of revenues in FY22, we expect this to ramp up in FY23 commensurate with the progress of our rich and diverse pipeline which provides Biocon Biologics a sustainable growth opportunity in the years ahead,” said Arun Chandavarkar, PhD, managing director of Biocon Biologics.

In July 2021, Semglee became the first biosimilar in the United States to receive an interchangeability designation, meaning that pharmacists can give the drug to patients in place of the reference product without needing permission from a physician, allowing patients easier access to the biosimilar and any associated savings.

Another big gain for Biocon Biologics was the acquisition of Viatris' entire biosimilar business for over $3 billion in cash and stock, which was announced in March 2022. Biocon Biologics has also signed a strategic alliance with Serum Institute Life Sciences that will target inequitable access to vaccines and biologic drugs around the world.

“We believe that the 2 strategic transactions, with Viatris and Serum Institute Life Sciences, will position Biocon Biologics as a world leading, unique, fully integrated biologics company with a strong differentiated portfolio of biosimilars and vaccines…. With a team of [about] 5000 people, Biocon Biologics is committed to transforming health care and transforming lives by enabling affordable access to millions of patients’ worldwide,” said Biocon.

Reference

Biocon Q4FY22 revenue at Rs 2,476 Cr, up 21%; core EBITDA at Rs 815 Cr, up 37%; PBT(before Exceptional Items) at Rs 384 Cr, up 9%. Biocon earnings report. April 28, 2022. Accessed May 10, 2022. https://www.biocon.com/biocon-q4fy22-revenue/