Biocon Limited Q4 FY24 Earnings Call Summary
Overview
• Date of Call: May 16, 2024
• Submission Date: May 23, 2024
• Key Executives: Group CEO Peter Bains and senior management
• Focus: Company performance across Generics, Biosimilars, and Syngene segments
Financial Performance
• Q4 FY24 Highlights:
• Total Revenue: INR 3,966 crores (up 1% YoY)
• Core EBITDA: INR 1,176 crores (30% operating margin)
• Net Profit: INR 136 crores (down from INR 335 crores YoY)
• FY24 Highlights:
• Total Revenues: INR 15,621 crores (35% increase YoY)
• Biologics Segment: Grew 58% to INR 8,824 crores
• Core EBITDA: INR 4,195 crores (10% increase, 29% margin)
• Net Profit: INR 1,030 crores (up 31% YoY)
Segment Performance
• Generics:
• Modest growth of 1% YoY
• Formulations business grew 36% YoY
• Regulatory milestones achieved, including generic Liraglutide approval
• Biosimilars:
• Revenue crossed $1 billion, 58% YoY growth
• Strong market share gains in the U.S. for Fulphila and Ogivri
• New formulary agreements and growth in insulin franchise
• Syngene:
• Q4 revenue grew 7% sequentially, but declined 8% YoY
• Full-year revenue increased by 9%
• Anticipates single-digit to low double-digit growth in FY25
Strategic Focus and Future Outlook
• Emphasis on reducing debt and enhancing growth opportunities
• Anticipation of growth driven by formulations in FY25
• Continued investment in R&D (8-9% of revenues)
• Plans for new product launches and capacity expansion
Market Dynamics and Challenges
• Discussion on market access and payer coverage for Adalimumab
• Confidence in market share gains despite price competition
• Addressed concerns about private label biosimilars and market share risks
Capital Expenditures and Debt Management
• Planned tapering of capital expenditures while supporting growth
• Active exploration of debt reduction strategies
Regulatory and Development Updates
• Progress on approvals for GLP-1 and immunosuppressants
• Optimized existing capacities in preparation for increased demand
• Geographic expansion efforts, particularly in the U.S. and Latin America
Conclusion
• FY24 marked by operational successes and strategic investments
• Positioned for growth in FY25 despite market challenges
• Focus on expanding capacity and launching new products to seize emerging opportunities

Biocon Limited Q3 FY24 Earnings Call Summary
Financial Performance
• Total Group Revenue: INR 4,519 crores (50% YoY growth)
• Revenue from Operations: INR 3,954 crores (34% YoY growth)
• Biosimilars Revenue: Increased by 65%
• Generics Revenue: Declined by 7%
• Core EBITDA: INR 983 crores (27% margin)
• Group EBITDA: Increased by 106% to INR 1,492 crores
• Profit Before Tax: Rose 220% to INR 787 crores
• Net Profit: INR 660 crores (from a loss of INR 42 crores last year)
• Debt Repayment: $200 million related to biosimilars acquisitions
Generics Business
• Operating Revenue: INR 703 crores (4% sequential growth, 7% YoY decline)
• Core EBITDA: INR 154 crores (22% margin)
• Market Approvals: First generic product approval in China
Biocon Biologics
• Integration of Viatris: Completed ahead of schedule across 120 countries
• U.S. Market Performance: Fulphila maintains 80% market share
• Revenue from Biologics: INR 2,483 crores (65% YoY increase)
• Debt Reduction: Net debt reduced to $1.1 billion
Novel Biologics
• Investment Gain: INR 456 crores from Bicara Therapeutics
Syngene Performance
• Revenue Growth: 9% to INR 854 crores
• Stable EBITDA Margin: 30%
• Challenges: Reduced funding in U.S. biotech sector
Key Highlights from Earnings Call
• Biosimilars Business: Focus on market penetration and product launches
• Generics Segment: Expanding portfolio and geographic presence
• Syngene: Strong performance in Development and Manufacturing services
Q&A Insights
• Aflibercept Product: Exploring next steps
• Biosimilars Revenue Growth: Expectations despite approval uncertainties
• Malaysia Facility: Awaiting FDA reinspection
• Bevacizumab: Optimism about market opportunities despite delays
• Adalimumab Market: Expected significant opening in 2025
Financial Concerns and Strategies
• Generics Segment Challenges: Pricing pressures in API business
• Deleveraging Plan: Focus on reducing net debt and improving cash flows
• Integration Costs: Expected to be one-off, improving future EBITDA margins
Future Outlook
• BBL IPO Timeline: Dependent on operational control and FDA approvals
• Ustekinumab Filing: Completed, with integration costs expected to improve margins
Operational Updates
• B3 Facility: EU GMP certified and operational, awaiting FDA inspection for U.S. distribution.

Biocon Limited Q2 FY24 Earnings Call Summary
Financial Performance
• Total Revenue: ₹3,620 crores (52% YoY increase)
• Revenue from Operations: ₹3,462 crores (49% increase)
• Core EBITDA: ₹1,100 crores (35% growth, 32% margin)
• Net Profit: ₹126 crores (up from ₹47 crores last year)
Business Segments
• Generics:
• Revenue: ₹676 crores (4% growth)
• Core EBITDA Margin: 23%
• Growth driven by U.S. Generics Formulation; API affected by supply issues.
• Biocon Biologics:
• Integration of Viatris progressing well.
• U.S. market share for key products increased.
• Slight revenue decline but 6% growth excluding licensing revenues.
• Research Services:
• Revenue: ₹910 crores (18% increase)
• EBITDA: ₹276 crores (19% increase, 30% margin)
Key Announcements
• Executive Appointments: Kedar Upadhye as CFO of Biocon Biologics, Peter Bains as Group CEO.
• Partnerships: Collaboration with Juno Pharmaceuticals for Liraglutide.
• Acquisition: U.S. manufacturing facility from Eywa Pharma.
Regulatory Updates
• EU marketing authorization for YESAFILI®.
• Complete Response Letter from FDA for Insulin Aspart.
Challenges and Concerns
• Price erosion in the biosimilar market.
• Rising interest costs and their impact on profitability.
• Ongoing quality control issues and FDA compliance challenges.
Management Insights
• Focus on debt management strategy with fixed and floating interest rates.
• Anticipated growth driven by new payor contracts and product demand.
• Commitment to addressing market dynamics and improving compliance.
Investor Concerns
• Quality control issues affecting shareholder value.
• Foreign exchange losses and high expenditures questioned.
• Management reassured focus on profitable growth and transformational initiatives.
Future Outlook
• Biocon Biologics aims for US$1 billion in revenue by 2030.
• Continued investment in R&D to maintain competitive margins.
• Management optimistic about future growth despite near-term challenges.

Biocon Limited Q1 FY24 Earnings Call Summary
Key Highlights
• Earnings Call Date: August 11, 2023
• Revenue Performance: Strong across all business segments
• Core EBITDA Growth: 42% increase to ₹936 crores
Business Segments
• Biocon Generics:
• 15% revenue increase
• New contracts and product launches
• Capacity expansions underway, including a new injectable facility in Bengaluru
• Biocon Biologics:
• Significant transformation post-Viatris acquisition
• Improved market share in biosimilars (e.g., Semglee at 12% in the US)
• Integration process progressing well
• Syngene:
• Comprehensive therapeutic discovery services
• Expanding commercial manufacturing capabilities
Financial Performance
• Total Revenue: ₹3,516 crores (59% increase)
• Core EBITDA: ₹513 crores
• Operating Margin: Healthy at 28%
• Market Share Gains: Notable increases in biosimilars across key markets
Strategic Focus
• Global Health Equity: Commitment to innovation and strategic partnerships
• ESG Integration: First GRI-aligned Integrated Report released for FY 2023
• Leadership Enhancements: Two new Independent Directors appointed
Challenges and Concerns
• Decline in Core EBITDA Margins: Dropped from 39% to 28% due to timing issues and higher rebates
• Market Share Metrics: Clarification on prescription metrics and market share reporting
• Debt Management: Current net debt at USD 1.2 billion, focus on aligning with covenants
Future Outlook
• Growth Projections: High double-digit growth (17-20% CAGR) anticipated over the next five years
• Investment Plans: USD 150 million CapEx for Biocon Biologics, primarily for insulin capacity expansion
• Regulatory Updates: Positive opinions for Yesafili (Aflibercept) from EMA and conditional approval from Health Canada
Conclusion
• Optimism for Growth: Driven by product performance, geographic expansion, and regulatory advancements
• Focus on Emerging Markets: Continued efforts to enhance presence and market share in these regions

Biocon Limited Q4 and FY23 Earnings Call Summary
Financial Performance
• Total Revenue: ₹11,550 crores, a 38% increase from FY22.
• Q4 Revenue: ₹3,929 crores, a 59% year-on-year increase.
• Key Growth Drivers:
• Biosimilars revenue up 61%.
• Research Services up 23%.
• Generics up 13%.
• Net Profit: ₹335 crores for Q4, up 28% year-on-year; ₹463 crores for FY23.
Strategic Developments
• Acquisition Impact: Successful integration of Viatris’ biosimilars business.
• Debt Reduction: Net debt decreased from US$1.9 billion to US$1.25 billion.
• Sustainability Focus: Improved scores on global sustainability indexes.
Biocon Biologics Performance
• Q4 Revenue: ₹2,102 crores, aiming for a $1 billion revenue trajectory.
• FY23 Revenue: ₹5,584 crores, a 61% increase year-on-year.
• R&D Spending: Increased to 16%, expected to normalize to 12%.
Future Outlook
• Product Launches: Preparations for Humira launch underway.
• Market Strategy: Focus on new product launches and enhanced capacities.
• Equity Raising Plans: Anticipated in FY24 to support business development.
Integration and Cost Management
• Transition Services Agreement (TSA): Two-year agreement with Viatris for service support.
• Cost Management: Current operating costs remain flat; future TSA costs to be absorbed into P&L.
Market Insights
• Hulio Product: Significant market opportunity noted.
• Generics Growth: Expected mid-teens growth driven by new capacities and contracts.
• Biosimilar Approvals: Awaiting FDA inspections for key products.
Stakeholder Engagement
• Ownership Structure: Biocon holds a 70% stake in Biocon Biologics.
• Serum Investment: Serum converting a $150 million loan into a 5% equity stake.
Conclusion
• Optimism for FY24: Continued growth anticipated across all segments, with strategic investments and product launches driving performance.

Biocon Limited Q3 FY23 Earnings Call Summary
Key Highlights
• Date of Call: February 15, 2023
• Executives Present: Dr. Kiran Mazumdar-Shaw, Mr. Siddharth Mittal, Shreehas Tambe
Company Performance
• Revenue Growth:
• 36% year-on-year increase to ₹3,020 Crores
• Biosimilars segment grew by 54%, Research Services by 23%
• Core EBITDA:
• Increased by 49% to ₹1,069 Crores
• Operating margins at 36%
• Net Profit:
• ₹140 Crores, down from ₹187 Crores the previous year
• Net loss of ₹42 Crores due to exceptional items from Viatris acquisition
Strategic Developments
• Acquisition:
• Successful acquisition of Viatris’ global biosimilars business
• Focus on debt reduction and structured funding
• Leadership Change:
• Shreehas Tambe appointed as CEO of Biocon Biologics
Regulatory and Market Outlook
• Regulatory Challenges:
• Acknowledgment of US FDA inspections
• Optimism about future approvals
• Market Strategy:
• Launch of Adalimumab in the US
• Continued expansion of existing products
Segment Performance
• Generics Business:
• Grew 18% to ₹718 Crores
• Biosimilars Revenue:
• ₹1,507 Crores, with core EBITDA up 83%
• R&D Pipeline:
• Advancing several biosimilars in clinical trials
Future Projections
• Revenue Guidance:
• Projected revenues exceeding ₹2000 Crores in Q4 FY23
• Anticipated US$ 1 billion annual run rate
• Growth Expectations:
• Mid-teen growth in Generics business
Financial Performance of Equillium
• Clinical Studies Update:
• Ongoing Phase 3 trials for Itolizumab
• Revenue Growth:
• 23% increase to ₹786 Crores
• EBITDA up 15% to ₹248 Crores
Market Dynamics
• Pricing Strategy:
• Stable average selling prices despite market deflation
• Debt Reduction Goals:
• Ongoing equity raising efforts
Shareholder Concerns
• Stock Price Decline:
• Kiran Mazumdar-Shaw addressed concerns over declining share price despite strong revenue growth
• Long-term Vision:
• Emphasis on growth and value delivery to investors
Conclusion
• Commitment to Growth:
• Focus on integrating Viatris operations and enhancing market share
• Future Plans:
• IPO preparations contingent on product approvals and market performance