Biocon Ltd. share price target

Revenues grew 30.4% YoY to | 1465.9 crore (I-direct estimate: | 1573.3 crore) mainly due to 96.0% YoY growth in biologics to | 490 crore (I-direct estimate: | 462.5 crore). EBITDA margins improved 868 bps YoY to 29.8% (I-direct estimate: 26.4%) mainly due to strong gross margin performance (71.0% vs. 61.4% in Q1FY19). EBITDA grew 83.9% YoY to | 437.5 crore against I-direct estimate of | 415.6 crore. Adjusted net profit grew 72.2% to...

Biocon has turned ex-bonus from June 12, 2019 pursuant to the announcement in the board meeting held on April 25, 2019. The board has recommended the issue of bonus shares in proportion of one bonus share (face value of | 5 each) for every equity share held. Consequently, the share price has changed to | 263 /share. We remain positive on the stock on the back of strong prospects in both biologics and services (Syngene) segments. We believe the correction in the stock is overdone and the stock offers a compelling bet at the current level. We maintain our BUY...

Biocon (BIOS) staged a strong performance in Q4, helped by robust growth in biologics business (up 87% YoY) and research services (up 30% YoY). BIOS reported stellar revenue growth of ~31% YoY at Rs1,529cr. Branded formulation segment witnessed softness in Q4

Well poised to capture global biosimilars opportunity The biologics segment (28% of FY19 in total revenues) includes biosimilars, encompassing Rh-insulin, insulin analogs, monoclonal antibodies & recombinant proteins. The company has invested heavily in this space in the last two to three years. The progress has been encouraging with approvals and launches in the US, EU, Japan, Australia and emerging markets. We...

ICICI Securities Ltd | Retail Equity Research Biocon's Q3FY19 numbers were a comprehensive beat vis--vis Idirect estimates on all fronts. Revenues grew 45.6% YoY to | 1540.8 crore (I-direct estimate: | 1382.4 crore) mainly due to 136.6% YoY growth in biologics to | 449 crore (I-direct estimate: | 379.6 crore) EBITDA margins improved 375 bps YoY to 24.7% (I-direct estimate: 26.2%) mainly due to improvement in product mix. EBITDA grew 71.7% YoY to | 380.7 crore against I-direct estimates of | 362.1 crore Adjusted net profit grew 131.6% to | 212.9 crore (I-direct estimate:...

25 January 2019 BIOS reported strong revenues, up ~46% YoY to INR15.1b (est. INR14.1b), led by strong growth in Biologics (28% of sales) and Research Services business (30% of sales). Superior product mix led to ~610bp YoY rise in gross margin (GM). EBITDA margin expanded ~560bp YoY (+80bp QoQ) to 26.5% on back of higher gross margin and lower employee cost, down ~280bp (as % of sales). This impact was partially off-set by higher other expense, which was up ~330bp (as % of sales). Absolute EBITDA increased by ~85% YoY (+20% QoQ) to INR4.1b on revenue growth and margin expansion. EBIT margin for the Biologics segment stood at ~30% v/s (-3%) YoY and 25% QoQ. PAT more than doubled to INR2.2b, growing ~136% YoY on back of strong revenue growth, margin expansion, and lower tax rate at 16.7% v/s 25.2% in 3QFY18.

Biocon Limited is an Indian biopharmaceutical company based in Bangalore, India.

ICICI Securities Ltd | Retail Equity Research Strong Q2 numbers were on the back of 136% YoY growth in Biologics segment led by commercial launch of biosimilar...

22 October 2018 received a positive opinion from CHMP for its Herceptin biosimilar for the EU market. BIOS/Mylan also have in place the EU good manufacturing practices (GMP) certification for their drug product and drug substance facilities. Biocon/Mylan would be the fifth team to receive a positive opinion for Herceptin for the EU market. Amgen received positive opinion from CHMP in Mar-18 and is in process to get approval EU commission. Though the market size is considerable, there is settlement in place between Mylan and Roche for launching the same in EU market. The inspection history at BIOS facilities (both drug substance as well as drug product) indicates successful compliance in place and would not be a hurdle for approval of any product. Recently, BIOS successfully completed the USFDA inspection (periodic GMP inspection) at its drug substance facility at Bengaluru with zero 483s.

24 September 2018 received a positive opinion from CHMP for its Neulasta biosimilar for the EU market. BIOS/Mylan also have in place the EU good manufacturing practices (GMP) certification for their drug product and drug substance facilities. Biocon/Mylan would be the fourth team to receive a positive opinion for Neulasta for the EU market. Accord (subsidiary of Intas Pharma) and Coherus received a positive opinion in July 2018, followed by Sandoz (Novartis division) and Cinfa Biotech in September 2018. The global market size of Neulasta is ~USD4.5b (as of CY17; ex-US sales USD600m). Separately, the drug product facility was inspected in April-May 2018 and received the Establishment Inspection Report (EIR) in June 2018. Successful inspections at both its facilities imply minimal regulatory hurdles for sales of pegfilgrastim biosimilar in the US market. BIOS/MYL, leading companies vying for approval in the regulated markets are Apotex, Sandoz, Coherus, Pfizer and Dr.