Setting New Matrix for Biotech Sector

"If there is a dream and goal, there should be action. For Biocon, it’s time to convert its dream and goal into action. Strategies have been chalked out - acquisitions, mergers, joint ventures are all there to follow the strategy. Biocon is all set to touching new heights in Biotechnology sector

   For realizing the dream of seeing India as a global destination for biotechnology, Biocon India is all geared up to attain global scale in the manufacturing and marketing capabilities. Biocon, India’s pioneering biotechnology enterprise, aspires to see itself among the world’s top 10 companies making it a global biotechnology enterprise.  A shy and studious girl, Kiran always wanted to be a brewer like her father who worked for United Breweries as the head brewer and managing director. More reason to be a brewer - she grew up as Vijay Mallya's neighbours. But after her graduation with B.Sc. Zoology Honours from Bangalore University in 1973, whenever she thought of entering into sector of her choice she had to face a strong gender bias prevailing in the sector. A chance encounter with the founder of an Irish Biotech entrepreneur, Leslie Auchincloss in 1978, led to the formation of a JV, Biocon India, in November 1978 and thus began her entrepreneurial journey.

The Growth Story

Since then the company has not looked back. It stands committed to build big brands of products like Insugen, BIOMAb-EGFR, and Statin. The share of Statins right now is about 33-34 percent of the biopharmaceutical revenue. Company’s dependence on Statins is reducing and growth is coming from other areas as well. Statins is about a third of its business, immuno-suppressants and insulin account for another 25 percent, and then the rest are all miscellaneous products, including the company’s branded formulations. Also the company’s growth in terms of revenue has shown the upward trend. The total revenues of Biocon for fiscal 2007-08 increased 19 percent to Rs l,090 crore, up from Rs 990 crore in the previous year, and net profit increased by 3 percent to Rs 225 crore. The consolidated revenue (excluding enzymes) increased by 19 percent from Rs 881 to Rs 1,044 crore this fiscal. Biocon's profit growth has been maintained at the consolidated level despite the divestment of the enzymes business, currency appreciation and increased depreciation. The company has a strong balance sheet with high reserves and Rs 193 crore in net cash. The biopharmaceuticals business still accounts for 75 percent share of the total business. The company is now gearing up to increase its top line performance in biopharma. So the year ahead should see it delivering a better growth in terms of biopharma. In branded formulations sales it has grown by more than 100 percent compared to the previous year.
The company is now planning to take it’s fully research unit, Syngene public.  Syngene has attained critical mass that can be leveraged to deliver a strong growth trajectory. As one of Asia's largest and most profitable Contract Research companies, Syngene's IPO can deliver superior shareholder value. However, the timing of the IPO will depend on domestic and global market conditions. More...