Biocon aims to list Biocon Biologics over the next few years

In its 2019-20 annual report, Bengaluru-based Biocon Limited stated that it aims to list its biosimilar unit Biocon Biologics in the next two to three years, subject to market conditions.

In March 2019, the company had hived off its biosimilars division into a separate unit - Biocon Biologics. The subsidiary has its own dedicated infrastructure and manages the manufacturing, development and commercialization of the biosimilars segment.

Biocon's Chief Executive Officer & Managing Director, Siddharth Mittal, while sharing information with the firm shareholders said that it is important for the company to unlock the value of the biosimilars business and the company intends to list Biocon Biologics on the Indian capital markets in the next two to three years. He also added that yet, the company could not comment on a specific IPO timeline since it was dependent on business performance and market conditions. 

A biosimilar is a medical product highly similar to already-approved biological medicine. With a booming global opportunity, Biologics is fast-emerging as a big opportunity for the company. Witnessed based on recent numbers, it is Biologics that has been driving growth and margins for Biocon.

Further, Biocon targets at generating US$ 1 billion in revenue from the biosimilars segment by FY22. Moreover, the company is predicting the market opportunities in the vertical to double over the next couple of years with developed market sales projected to increase in FY21 and beyond.

Biocon's stock was trading at Rs 394.85, down by 0.18 per cent or Rs 0.70 per share, at 10.20 am on Friday. The 52-week high is recorded at Rs 410.35 and the 52-week low is Rs 211.30 on BSE.