Biocon

• Established in 1978, Biocon Limited is India's largest biotechnology company, specializing in biopharmaceuticals, custom research and clinical research.

 

• Biocon delivers products and solutions to partners and customers across 50 countries across the globe. Many of these products have USFDA and EMEA acceptance.

 

• The company recently sold its enzymes business to Novozymes South Asia Pvt Ltd, for an overall consideration of Rs 467 crore and this is expected to improve the working as returns on this fund would be higher.

 

• The company, being flush with funds now, plans to reinvest the money from the sale of its enzyme division and it is looking at strategic acquisitions to move up the value chain. It plans to acquire pharma research companies either in the US or Europe and once that happens, things will change dramatically for the company.

 

• The company's subsidiary Syngene International, its custom research arm, has tied up with BMS and this tie-up is expected to start giving revenues to the company from the third quarter.

 

• The company is in the process of developing oral and nasal insulin products - of which oral insulin is undergoing phase-1 trials; It is also developing drugs for rheumatoid arthritis, cancer and cardiology. Once these also get the necessary approvals, the adverse impact of the rupee appreciation will get more than diluted.

 

• The company's' branded formulations are doing extremely well. INSUGEN has already overtaken brand leaders, both in some of the domestic market segments as well as a few international markets. BIOMAb EGFR has attained market leadership in its very first year of launch in India.

 

• Neo-Biocon, a JV between Biocon and Neopharma, based in Dubai, has commenced operations in the GCC region. This is expected to be a significant market opportunity for Biocon's products and it is expected to add to the coffers of the company, starting this fiscal.

 

• The company has also recently received marketing approval for ABRAXANE (A nanoparticle albumin bound paclitexel) from DCGI, which will also add to the bottomlines.

 

• Biocon is in the process of registering with the regulatory authorities in the developed markets for the launch of Insugen. The strategy would be to out license the products to different partners for different geographies and to launch on its own, in Europe and other key markets.

 

• Biocon hopes to commercialise its new molecule under development for psoriasis and rheumatoid arthritis in three to four years. The drug is undergoing Phase II clinical trials in India.

 

• Biocon's Biomab, the monoclonal antibody for the treatment of cancer, will also be launched in the European market (where it is awaiting approvals) within a year.

 

• The company's financial performance for the first half of the current fiscal has been quite encouraging. Consolidated Revenues grew by 19% over the same period in the previous year. Biopharmaceuticals and branded formulations showed strong performance and Insulin was a significant contributor. Technology and licensing revenues continued to contribute to H-1 financials.

 

• EBITDA grew by 31%. Profit after Tax stood at Rs: 107 crores registering an impressive 27% growth. The profits could have been much higher but was restrained by rupee appreciation.

 

• The company is one of the big time investors in research and for H1 FY08, the company's R&D expenditure increased to Rs. 32 crores from Rs. 19 crores in the previous years first half.

 

• Biocon is one of the best companies in India and it is indeed headed for very big times in the future. Though the stock has caught the fancy of the marketmen, the real surge in the stock price of Biocon is yet to begin as the good times are just about to start unrolling for the company. 

 

• On a face value of Rs.5 per share, the company's annualized EPS stands at Rs.18.20. It is currently quoted at Rs.563. One can safely buy Biocon for wealth creation in the next 12-15 months.