Biologics to boost Biocon business over the next 3 years, say analysts - (Business Standard via NewsPoints Desk)

  • Analysts anticipate that biologics will help Biocon post double-digit growth in both revenue and net profit over the next three financial years, reported Business Standard.

  • They say Biocon's current biosimilars pipeline through its own and partner launches has potential to generate $377 million in revenue from the US and Europe in 2020-2021.

  • Biologics accounted for 27 percent of total revenue in fiscal 2019 and the segment is expected to see a 46-percent compound annual growth rate over fiscal 2019-2021.

  • Its contribution to overall revenue will go up to 44 percent, commented Ashika Institutional Research analyst Shrikant Akolkar.

  • "The payback time for Biocon has started after years of R&D investment. Biocon now has two US and three European biosimilars’ approval. Additionally, through Mylan’s partnering, it also has two more biosimilars in its pipeline, which can provide strong thrust to revenue and profit after tax (PAT) in [fiscal 2021-2022]," Akolkar said.

  • "We forecast Biocon to report 25 percent/45 percent revenue/PAT over fiscal 2019-2022...If approvals come timely, the biosimilar revenue from developed markets can reach $0.5 billion in fiscal 2022," the analyst added.

To read more NewsPoints articles, click here.