Biocon Ltd. share price target

We recommend a BUY rating on the stock with a Target Price of Rs 420.

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...