Big pharma players looking to vacate the biosimilar space while there is a rise in demand, a comprehensive portfolio of insulins and big investments will lead to a growth wave for this company, which has a current market cap of Rs 41,000 crore, as per executive chairperson.
“We are at the cusp of a breakthrough in growth. I always like to use the analogy of the pandemic and the waves that we've seen. And I think for us, growth is also about having waves... Because of the investment-linked growth that it is so dependent on," said Biocon chief Kiran Mazumdar Shaw in an interview with CNBC-TV18.
Biocon has a number of new launches on the anvil this year. However, the most important event will be the merger and acquisition of the Viatris business, she added.
At the time of updating this copy, the Biocon stock was trading at Rs 341/share
Reports had earlier said that Biocon Biologics is likely to close the $3.34 billion Viatris' biosimilar business deal by as early as this quarter depending on a nod from regulatory agencies.
According to Shaw, the growth wave for her company is being steered by Biocon Biologics' Viatris acquisition and other investments made by Biocon in Visakhapatnam — in APIs (Active Pharmaceutical Ingredients) and ANDAs (Abbreviated New Drug Applications), many of which are in the approval stage.
Syngene, Biocon's subsidiary, operating in the contract research services space, is aggressively moving into contract development and manufacturing (CDMO), which, Shaw says, will also help in driving the growth wave.
"Of course, we have Syngene too, which is now also at the cusp of a breakthrough growth, because of the fact that it is now moving into the contract development and manufacturing (CDMO) space very aggressively," she said.
As the big pharma companies look to vacate the biosimilar space, Shaw is confident that Biocon will make most of the opportunities available in the space.
“For us, it's a very profitable business. So, I think it augurs very well for companies like Biocon Biologics to make a big play out of the emerging opportunities in biosimilars not just in the US, not just in Europe, but globally, I think the demand for biosimilars is just going to mushroom,” she said.
On insulins, she believes Biocon can disrupt the US market as it is the only company with a comprehensive portfolio.
"We believe that we can actually disrupt that market and it is a very profitable sector for us to play in, in the US. We believe that this is going to be extremely exciting and important for Biocon," she added.
However, despite the good news surrounding the company, Biocon share price closed 0.80 percent lower at Rs 316.50 per share on the BSE today. The stock has been falling for the last five sessions and has underperformed the Sensex by almost 24 percent in last one year.
Watch the video for the full interview