ICICI Direct's research report on Biocon
Biocon mainly operates in biologics (biosimilars), small molecules (generics), branded formulations and contract research (Syngene). Biocon Biologics (BBL), a subsidiary of Biocon, entered into an arrangement to acquire Viatris’ biosimilars assets for US$3.335 billion. Biocon Biologics entered into a strategic alliance with SILS for access to 100 million vaccine doses per annum for 15 years. Biosimilar US pipeline: (approvals - Pegfilgrastim, Trastuzumab, Glargine, Adalimumab); filed - Aspart and Bevacizumab • In generics, it is among the world’s largest manufacturers of immunosuppressant and statin APIs • Revenue breakup FY22: Biosimilars (41%), Generics (28%), CRAMS (31%).
We maintain HOLD as 1) we wait for Viatris deals impact considering sheer balance sheet expansion, 2) execution risks with incremental size of business verticals and 3) persistent price erosion and regulatory issues. We value Biocon at Rs 380 on SOTP basis.
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