Accumulate BIOCON; target of Rs 422: Hem Securities

Hem Securities report on BIOCON

Revenue at Rs 2,223 Cr for Q3FY22, up 18%; EBITDA at Rs. 537 Cr, up 28%. Generics - three new approvals, partnership with Tabuk Pharmaceuticals for expansion into the Middle East and North Africa. Biosimilars - interchangeable bGlargine launched in US and received preferred status in the national formularies of two leading U.S. Pharmacy Benefit Managers. Novel Biologics - on track to initiate a Pivotal Study in early CY22 for use of Itolizumab in the First-Line treatment of Acute Graft Versus Host Disease. Research Services - Discovery Services and the Dedicated Centers were key growth drivers, while Development Services and Manufacturing Services delivered sustained performances.

Outlook

We expect company to deliver strong topline growth for next few years and recommend to ACCUMULATE the stock with price target of Rs. 422.