Biocon Biologics sees insulin demand growing across markets, says CEO Tambe

“What we are certainly seeing is an increasing demand for our insulin products…not just in the US and Europe but also in emerging markets," Tambe told Mint in an interview. “We consider diabetes and insulin particularly as a big differentiator [for us] because the world is going to need insulin and it's not going away," Tambe added.

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Tambe said the company, a subsidiary of the Bengaluru-based Biocon Ltd, has five products in the pipeline for launch in the US, including Bevacizumab in oncology, insulin Aspart in diabetes, and Ustekinumab in autoimmune therapy. The company is also awaiting approval for its biosimilar Denosumab, used to treat osteoroposis, after which the product will be launched. Biocon also has three products lined up for launch in Europe.

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“The biggest tailwind that we’ve is that the therapy areas that we operate in happen to be the therapy areas that global healthcare spends are aligned on…diabetes, oncology and autoimmune diseases. And if you look at the portfolio that we have, it completely aligns with them," Tambe said.

First year as fully-integrated global business

The quarter ended December marked the business completing one year as a fully-integrated global biosimilars company after the acquisition of US drugmaker Viatris’ global biosimilars business.

The company had earlier said it hoped to grow its market share of its existing products in key markets. In the last quarter, its US market share for its oncology biosimilars grew significantly—Trastuzumab’s market share doubled to 22% year-on-year, while Pegfilgrastim’s share grew to 23% from 19% a year ago. The shares of the insulin portfolio, which includes Semglee (insulin glargine-yfgn) and unbranded Insulin Glargine, continued to be in the mid-to-high teens, including all channels. Market share of Semglee grew to 18%, including all channels.

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“We've said that we've got headroom for growth in Europe. We haven't done as much as we could because there is an opportunity there…We have eight products already approved [and] three more will be launched in the next two years. So, clearly, a lot more headroom for us to work in Europe," Tambe said.

Biocon posted its results for the third quarter on Thursday. In Q3FY25, the biosimilars business grew 14% year-on-year to ₹2,289 crore on a like-to-like basis, after adjusting for the Branded Formulations India (BFI) revenue and income, which has since been divested.

Biocon buys back investor stake

On Thursday, parent company Biocon Ltd said its board had approved the acquisition of a 1.5% equity stake in Biocon Biologics for ₹550 crore from one of its existing investors who had exercised the liquidity option. It is not yet known who the investor is and Biocon did not immediately comment on it.

Biocon Biologics has earlier raised capital from Goldman Sachs, True North, Tata Capital and ADQ.

“There was a requirement for an equity investment to be swapped and Biocon Limited stepped in to do that," Tambe said.

The Biocon Group reported Q3FY25 operating revenue of ₹3,821 crore, adjusted for the divested BFI business, reflecting a 10% year-on-year growth. Total revenue for the quarter was ₹3,856 crore, a 7% increase. Earnings before interest, taxes, depreciation, and amortization for the quarter was ₹787 crore, up 16% from the previous year on a like-for-like basis. Net profit plunged 96% from ₹660 crore in Q3FY24 to ₹25 crore. The third quarter in FY24 had been significantly boosted from the Branded Formulations India (BFI) business units divestment.