Slides
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The Multiplier Effect M A X I M I Z I N G V A L U E 31 - JANUARY - 2 0 2 5 Q3 FY25 Earnings Call Biocon Limited
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Safe Harbor Statement Certain statements made during the call concerning the future growth prospects of the Company may be forward-looking statements, which are subject to number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others general economic and business conditions in India, our ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing competition in and the conditions of the Indian biotechnology and pharmaceuticals industries, changes in political conditions in India and changes in the foreign exchange control regulations in India. Neither the Company, nor its directors and any of the affiliates have any obligation to update or otherwise revise any statements reflecting circumstances arising after this date or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.
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Group CEO Opening Remarks
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Opening Remarks: Q3 FY25 Performance Overview Q3 has been important and progressive reflecting both continued executional delivery and strategic strengthening across the Group companies Highlights: Successful closure of FDA audits across multiple Biocon and Biocon Biologics sites Receipt of key product approvals in Generics and Biologics’ businesses Completion of all BBL’s deferred milestones under the acquisition agreement with Viatris, full and final remittance of considerations for the acquisition completed Overall Group financial performance in-line with our expectations; YoY Operating Revenue growth of 10% on a like for like basis Sustained growth in Biosimilars, return to growth in Research services, marginal decline in Generics Sequential growth across all three segments Maintain outlook for a transition to growth in the second half of the fiscal year and into the next fiscal
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Financial Highlights
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In ₹ Cr Q3 FY25 Q3 FY24 Q2 FY25 YoY% YoY% (Adj.) QoQ% Generics 686 703 624 (2) (2) 10 Biosimilars 2,289 2,483 2,182 (8) 141 5 Research Services 944 854 891 11 11 6 Revenue from Operations 3,821 3,954 3,590 (3) 101 6 Total Revenue 3,856 4,519 3,623 (15) 71.2 6 Core EBITDA3 1,007 983 992 2 41,2 2 % Margin 26 27 28 R&D 199 329 200 (40) (40) (0) % of Revenue (Ex. Syngene) 7 11 7 EBITDA 787 1,492 718 (47) 161,2 10 % Margin 20 33 20 Profit Before Tax (Before exceptional items) 138 787 72 (82) 91 % Margin 4 17 2 Net Profit / (Loss) (Before exceptional items) 13 644 (13) (98) Exceptional item, net of tax & NCI 12 16 (3) (25) Net Profit / (Loss) (Reported) 25 660 (16) (96) Financial Highlights – Q3 FY25 1 Excluding revenues from Branded Formulations India (BFI) and income from part divestment of BFI units in Q3 FY24 2. Excluding dilution/ fair valuation gain in Bicara Therapeutics in Q3 FY24 3 Core EBITDA defined as EBITDA before forex, R&D, licensing income, dilution/ fair valuation gain in Bicara, sale of non-core BFI assets and mark to market movement on investments
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Generics
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Biocon Generics: Q3 FY25 Business Performance update In ₹ Cr Q3 FY25 Q3 FY24 Q2 FY25 YoY% QoQ% Revenue from Operations 686 703 624 (2) 10 Core EBITDA 102 154 97 (34) 5 % of Total Revenue 15 22 15 R&D 73 65 67 13 8 % of Revenue 11 9 11 EBITDA 39 91 36 (58) 7 % of Total Revenue 5 13 6 PBT (14) 50 (9) (128) (54) % of Total Revenue (2) 7 (1) Sequential revenue growth of 10% driven by higher API sales and improved contribution from generic formulations Strategic R&D investments in peptides and other complex products to fuel mid to long term growth Key approvals during the quarter: GLP1 Liraglutide: EU de-centralized Procedure (DCP) approval Tacrolimus Capsules: Second major drug approval in China. Successful regulatory outcomes of the U.S. FDA inspections of both our Bengaluru API sites conducted in September 2024. EIRs with VAI status both sites (Site 1 and Site 2) from U.S. FDA Cranbury (U.S) facility now qualified by the U.S. FDA for three vertically integrated statin products; commercial supply has commenced Expect performance in Q4FY25 and beyond to build upon sequential revenue growth in Q3. Growth to be driven by new product launches across markets
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Biosimilars
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Biocon Biologics: Q3 FY25 Business Performance Update Strong performance in the U.S., with market shares >20% for the oncology portfolio and mid-to-high-teens for the Glargine franchise Market shares in Europe remain stable with a strong performance in key markets e.g. Germany and France where we hold double-digit shares for products such as bAdalimumab Continue to expand the depth and breadth with 8 approvals and 14 new launches across key geographies in Emerging Markets US: Key Product Market Share (Quarterly) Europe: Key Product Market Share (Quarterly) Note: The data presented hereunder inter alia volumes, projections, market share, is based solely on our study, interpretation and conclusion derived through analysis of different data sets from varied sources inter alia IQVIA Hulio, 5% Abevmy, 4% Nepexto, 2% Semglee, 4% Fulphila, 8% Ogivri (in IV), 12% 0% 5% 10% 15% 20% 25% Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 % Market share by volume (Eq SU) Ogivri, 22% Fulphila, 23% Semglee, 11% 0% 5% 10% 15% 20% 25% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 % Market share by volume (Eq SU) 18% incl. all channels
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Biocon Biologics: Q3 FY25 Financial & Regulatory Update Financial Performance Revenue grew 14% vs. last year on a like-to-like basis1 while EBITDA grew 44%1 after adjusting for forex impact Fulfilled obligations towards all deferred consideration milestones under the acquisition agreement with Viatris Regulatory Update U.S. FDA classified Biocon Park facilities in Bengaluru and Insulins facilities in Johor Bahru, Malaysia, as Voluntary Action Initiated (VAI) bUstekinumab approved in global markets - U.S., Japan and Positive Opinion from European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) In ₹ Cr Q3 FY25 Q3 FY24 Q2 FY25 YoY% Yo Y % (Adj.)1 QoQ % Revenue from Operations 2,289 2,4832 2,182 -8% 14% 5% Core EBITDA 654 587 691 11% 14% -5% % of Revenue 29% 28% 32% R&D 135 265 138 -49% -49% -2% % of Revenue 6% 11% 6% EBITDA 487 7142 469 -32% 44% 4% % of revenue 21% 29% 21% 1Post adjustment of sales from BFI Unit, India and BFI divestment gain of ₹350Cr. Like-to-like EBITDA post forex in Q3FY25 is ₹ 507 Cr. vs. ₹ 352 Cr. LY. I 2Includes sales from the BFI Unit, India and BFI divestment gain of ₹350Cr.
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Research Services
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Syngene: Q3 FY25 update In ₹ Cr Q3 FY25 Q3 FY24 Q2 FY25 YoY% QoQ% Revenue from Operations 944 854 891 11 6 Total Revenue 962 883 908 9 6 EBITDA 302 261 261 16 16 % of Total Revenue 31 30 29 PBT 181 142 137 27 32 % of Total Revenue 19 16 15 Broad based growth, signaling a return to growth across all divisions Discovery Services contributed to growth: Continued collaborations with many large and mid-size pharma companies on pilot projects Converted initial pilot projects into full-fledged contracts, which should contribute to growth into next year. Steady performance by Development and Manufacturing Services, driven by biologics Overall, a positive Q3 performance with positive momentum across all business
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Concluding Remarks
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Concluding Remarks: Q3 FY25 Q3 FY25 has been important and progressive for the Biocon Group Improved growth visibility across all the businesses Maintain our outlook for a transition to growth in the second half of this fiscal year, and into the next fiscal Syngene has returned to growth, on the right trajectory Good momentum maintained in Biosimilars, clear line of sight for multiple new product launches Recovery in Generics to be driven by launch of our first GLP1 generic in UK and EU, new launches in the United States
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The Multiplier Effect M A X I M I Z I N G V A L U E Q & A