Biocon may list biosimilars business by 2025 first half - CEO
By Rishika Sadam
HYDERABAD (Reuters) - Indian biopharmaceutical company Biocon Ltd is planning to list its biosimilars business, a significant contributor to the company's total revenue, by the first half of 2025, a top executive said on Friday.
Biocon Biologics, a fully integrated subsidiary of Biocon Ltd, focuses on making biosimilars, with key revenue-generating markets being the United States and Europe.
"I would say it (listing of the biologics business) can happen any time after the second half of 2024 ... it is likely to happen in the first half of 2025," Biocon Ltd CEO and Managing Director Siddharth Mittal told Reuters.
Last year, Biocon acquired U.S.-based Viatris Inc's biosimilar business.
"There are a couple of milestones (to meet) before we get to that stage ... we have to complete transition of all territories of Viatris to us and we are looking at reducing the debt which was taken to fund the acquisition," Mittal said.
Biosimilars are copies of costlier complex biological drugs used to treat illnesses such as cancer, rheumatoid arthritis and psoriasis.
According to research and analytics services firm IQVIA, the global biosimilar market value is expected to grow to an estimated $75 billion by 2030 from $17.9 billion in 2020.
Mckinsey also estimates the industry to see continued double-digit growth to become a $60-billion market by the decade's end.
On Thursday, Biocon reported a 29.8% drop in first-quarter profit. Revenue, however, jumped 60%, helped by the strong performance of the biosimilar business.
Revenue growth in the biosimilars business more than doubled during the quarter to 20.15 billion Indian rupees.
Biocon Biologics has a portfolio of more than 20 products primarily focusing on oncology, immunology and diabetes.
($1 = 82.8070 Indian rupees)
(Reporting by Rishika Sadam; Editing by Sohini Goswami)
