Not anticipating any immediate impact on our business due to US election result: Biocon CEO

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26 Aug, 2025 12:21

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With Donald Trump being elected as the 47th President of the USA, economy watchers are keenly looking forward to his administration’s policy moves, specifically on the tariff front. Sectors such as pharmaceuticals, information technology (IT) and other export-driven sectors are expected to face headwinds due to tariff wars but may also see some benefits from Trump’s efforts to reduce US dependence on China.

In an interaction with Moneycontrol, Siddharth Mittal, Chief Executive Officer (CEO) & Managing Director (MD), Biocon Limited, said that in the near term he does not anticipate too much disruption from the change of guard at the White House, while highlighting that US efforts such as the Biosecure Act have led to increased enquiries for parts of its business. Mittal also spoke about the outlook for the second half of financial year (FY) 2025 and on the initial public offering (IPO) plans of the group’s biosimilar business, Biocon Biologics.

Edited excerpts from the interview:

How will the outcome of the US presidential elections likely to impact your businesses?

Mittal: In the short term, I don’t anticipate any immediate impact on our business due to the US elections. Could these factors affect us in the mid to long-term? Yes, potentially, depending on the policy direction, and the way they look at policies which are favouring innovators versus generics, that can have an impact. While the election outcome could influence the US stock markets and funding environment, which if at all, could have an effect on Syngene. However, I don’t expect significant changes in the upcoming quarters or even in the next year, as it typically takes time for such impacts to materialise.

The demand for our generic and biosimilar drugs remains stable, with no immediate changes expected. The longer-term impact is harder to predict, and I wouldn’t like to speculate.

Geopolitical shifts have been advantageous for Syngene, especially as we have seen increased interest and business development activity over the last few quarters, particularly following the Biosecure Act. While the Act’s initial timeline was extended from three to seven years, interest in Syngene’s research services and manufacturing remains strong. We expect to see the full benefits of this in the mid to long-term.

The first half performance was muted, which you had expected, and you have given guidance for growth in the second half. What are the key growth drivers you are hoping that will be firing for you in the second half of FY25?

Mittal: For biosimilars, we expect growth to continue as we have seen in the first half, driven by increasing market share for existing products across various markets. Geographic expansion has been a key factor in this growth, particularly in emerging markets. Additionally, new product launches in the near to medium term are expected to boost growth. Products like Ustekinumab, Denosumab, and Aflibercept are set for launches globally, while Aspart and Bevacizumab are planned for the US, pending facility inspection outcomes. The combination of these factors will support growth in the biosimilar segment.

For the generics segment, Liraglutide will be a major growth driver for both the second half and the next fiscal year. We have a day-one launch scheduled in the UK this month, followed by launches in additional markets. We are also expecting the approval by the European Union by (EU) year-end, which will facilitate further expansion in markets where filings are already in place.

There are additional growth drivers within the generics segment such as increased volumes of our base products, expanded capacities over recent months which will lead to volume growth and new launches.

Also Read: Biocon shares slump 5.5% as net profit takes a dive in Q2

The GLP-1 market is substantial, currently generating over $100 billion in annual sales and projected to reach $150 billion by 2030, creating a major opportunity in this space. We are well-positioned within it. Right now what is opening up is Liraglutide, which represents about $3 billion of that total. Most of the market has shifted towards semaglutide and tirzepatide. Semaglutide, however, will become available in emerging markets by 2026.

While current IQVIA figures offer insights, we believe the market has further potential with the introduction of affordable options. The cost of treatment is prohibitively high in many regions, so an affordable GLP-1 drug could greatly expand access and grow the market significantly.

How much of a boost are you expecting to see from the US Biosecure Act for your business?

Mittal: With the formal passage of the Biosecure Act, we are seeing a very real and significant development. While we don’t expect immediate impacts, there has been a sustained and healthy interest from clients, reflected in increased request for proposals (RFPs), site visits, and audits. Syngene is ramping up its capacity and capabilities in discovery services across Bangalore and Hyderabad, with a particular focus on specialised areas such as antibody-drug conjugates, peptides, and oligonucleotides.

Biologics continue to be a key growth driver for Syngene, bolstered by major contracts like the one with Zoetis, announced last year, which has been instrumental in building our overall capability in this area. While the Biosecure Act and geopolitical dynamics have spurred increased inquiries, the tangible outcomes will take time to materialise.

Now that you have refinanced your acquisition debt at Biocon Biologics, are you planning to start working on the IPO of the business?

Mittal: We refinanced the bank debt with $800 million of bond issuance and restructuring the remaining $200-300 million of bank debt. This restructuring extends our repayment timeline, allowing us to use operating cash or free cash flow to reinvest in the business for future growth. We want to bring down the debt levels further and we will look at the best ways to do so.

Also Read: With refinancing done, focus will now be on debt reduction: Biocon Biologics CFO

We've been saying since the last few years that it (IPO) will happen, and that timeline has been moving. As you can imagine, there are certain milestones which need to be achieved before we go public and the concerns of the investors need to be addressed to ensure a successful IPO.

Debt level was one of those concerns, Federal Drug Authority (FDA) inspections and their outcome that was another concern and of course they want to see revenue growth. Now, we have started seeing revenue grow, as you have seen from the numbers. We expect to hear back from the FDA soon on the facility inspection outcomes. We have already refinanced the debt, but we also have to see what can be done to reduce the overall debt levels. So, once we are at that stage where we have addressed majority of the concerns which a prospective IPO investor will have. Then, it will be a right time to look at the IPO.