Biocon Ltd. share price target

Biosimilar US pipeline: (approvals - Pegfilgrastim, Trastuzumab, Glargine, Adalimumab); filed - Aspart and Bevacizumab Revenue breakup FY21: biosimilars (37%), generics (31%), CRAMS (29%)...

BBL (a subsidiary of BIOS) will acquire Viatris' Biosimilar business to create a vertically integrated company in the Biologics segment. With this acquisition, BBL will acquire the commercial infrastructure in developed/emerging markets, rights for all Biosimilar assets (including the in-licensed portfolio), and the option to acquire rights of bAflibercept. This also fills BBL's gap in regulatory development and supply chain management of Biosimilars in the developed market. The management pegs the estimated revenue/EBITDA of Viatris'...

Consolidated revenue for Q3FY22 was up 17.1% YoY to Rs. 2,174cr (+18.1% QoQ), driven by a strong performance across all business segments. Biggest contributor to the revenue growth was the Biosimilars business. Biocon Biologics Ltd. recorded revenue of Rs. 981cr, a growth of 27.6% YoY (+32.2% QoQ) helped by robust demand across products and geographies and the launch of 351(k) biosimilar Insulin Glargine in the *over or under performance to benchmark index...

Therefore, we recommend a BUY rating with a Target Price of Rs 425, implying an upside of 14% from the CMP.

Revenue at Rs 2,223 Cr for Q3FY22, up 18%; EBITDA at Rs. 537 Cr, up 28%. Generics - three new approvals, partnership with Tabuk Pharmaceuticals for expansion into the Middle East and North Africa. Biosimilars - interchangeable bGlargine launched in US and received...

What should investors do? Biocon's share price has grown by ~2.3x over the past five years (from ~| 162 in January 2017 to ~| 370 levels in January 2022). We maintain HOLD as we await continuity in biosimilars momentum besides...

In addition to steady traction in already launched Biosimilars, BIOS has Insulin Glargine (Semglee) contracts starting 4QFY22. This would be further supported by bAspart, subject to regulatory clearance. The recent agreement with the Serum Institute of India (SII) to market its COVID-19 vaccine further increases its business prospects from 2HFY23E onwards. We expect 36% earnings CAGR over FY21-23E, led by Insulin Glargine, scaling up of the Biologics business in emerging markets, and ramp-up in research services. We are yet to factor in the Vaccine business in our estimates. While the earnings outlook remains promising, we maintain our Neutral stance with a...

We expect revenue and PAT CAGR of 11.4% and 16.0% respectively over the period FY21-FY24E and we recommend a BUY on the stock with TP of Rs 390, implying an upside of 12% from CMP.

The company's medium-term outlook remains intact on new product launches, new approvals from US FDA, increased R&D; spends, strong pipeline and higher operational efficiency. Therefore, we reiterate our...

We believe the company's valuations are at a comfortable level considering the its stable growth over a longer period. Therefore, we recommend BUY with a Target Price of Rs 370.