Biocon Ltd. share price target

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.

BIOS delivered an operationally in line 2QFY22, while higher other income led the earnings beat. The healthy show in Research Services and ramp-up in Biosimilar sales was dragged down by the Generics segment on a YoY basis. We lower our FY23E EPS estimate by 3%, factoring in: a) pandemic-led delays in inspection, thereby having a subsequent impact on the approval timeline, b) gradual pick-up in market share for Insulin Glargine c) intense pricing pressure in Generics, and d) an increase in raw material prices. We value BIOS at 32x 12-month forward earnings to arrive at our TP of...

Robust biosimilar portfolio with partners like Viatris, Sandoz (for future launches), Adagio among others. Biosimilar US pipeline: (Approvals Pegfilgrastim, Trastuzumab, Glargine, Adalimumab); filed - Aspart and Bevacizumab. Global footprint in +120 countries for biosimilars In generics, it is among the world's...

BBL also entered into a strategic alliance with SILS with an offer of 15% stake in BBL with post money valuation of BBL ~ US$4.9 billion. The alliance gives BBL access to 100 million doses of vaccines/annum for 15 years with commercialisation rights (including Covid-19 vaccines) for global markets The strategic alliance will also develop antibodies along with a service level agreement (SLAs) for manufacturing and distribution of the vaccines and antibodies. Additionally, Biocon Biologics will establish, at its cost, a vaccine R&D; division for developing both vaccines and biologics for communicable...

Biocon reported weak numbers from the last 3 quarters, as the industry is facing price erosion challenges. Furthermore, the company is trading at rich valuations therefore we recommend HOLD with TP Rs 400.