Generics Business Pricing Pressure and Demand Contraction: Biocon's Strategic Response
During the April-June quarter, Biocon reported a healthy topline and bottomline, despite the challenges faced in its generics business due to pricing pressure and demand contraction. In an insightful discussion, CEO Siddharth Mittal elaborates on the company's approach to enhancing the generics business performance through strategic product launches and APIs development.
Addressing the Generics Business Challenges
The generics segment has been under pressure, impacting our generic formulations and APIs performance. We expect to overcome these setbacks starting in the second half of this fiscal year through strategic launches, including Liraglutide in the UK.
Future Projections for Generics Business Growth
- Continuing to maintain good market shares in commercialised products.
- Growth in FY25 driven by the European market.
- Stability anticipated in the U.S. market.
Investment in Research and Development
Our focus remains on strategic investments in R&D to build a competitive product pipeline. This fiscal year, we anticipate R&D investments to be around 8-9% of revenues for both generics and biosimilars.
Strategic Roadmap for Debt Reduction
Biocon’s consolidated net debt stands at $1.1 billion, and reducing this is a key priority. Fundraising options are being explored to assist in lowering the debt level further.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.