Biocon lines up USD 200 mn capex for the current fiscal - (The New Indian Express via NewsPoints Desk)

  • According to its annual report, Biocon expects to invest $200 million (INR 1500 crore) on capital expenditures in 2020-2021, reported The New Indian Express.

  • Biocon CEO Siddharth Mittal said the investment would be split across small molecules and biosimilar verticals.

  • The company's capital expenditure during 2019-2020 stood at INR 974.2 crore, Mittal said. Last fiscal, the company invested in a new manufacturing facility in Visakhapatnam for immunosuppressant products, the news source noted.

  • "In biosimilars, major spends were on account of the greenfield antibody facility in Bengaluru, incremental drug substance and drug product capacities within existing plants and R&D facility in Chennai," Mittal said.

  • On the small molecules business segment, he said the company expects revenue growth in the vertical to be between high single-digit and low teens over the next two years.

  • "Currently, the API (active pharmaceutical ingredients) business contributes significantly to the small molecules business segment. However, going forward, the growth in this segment will be driven by the generic formulations opportunity in the US," Mittal added.

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