Biocon plans to increase the share of branded formulations in its sales to 20 per cent, from 14 per cent at present, as it targets $1 billion revenue by end of FY 2019. At present, Biocon sells branded formulations, including biologics and biosimilars, in India and the UAE. The company plans to expand the business with the launch of new products and entry into new markets. In 2016-17, Biocon reported revenue of Rs 4,078 crore. The company on Thursday launched the anti-cancer biosimilar Bevicazumab under the brand name Krabeva. Biocon said the drug featured a unique mechanism that would ensure patients receive quality-ascertained products right up to infusion. “As Krabeva is being launched in the middle of the third quarter, its impact will reflect in fourth-quarter sales of branded formulations,” said Suresh Subramanian, senior vice-president and head of branded formulations, Biocon. The Biocon stock gained one per cent on Thursday to close at Rs 413.05. The stock has fared better than the pharma index and the Sensex in the year to date, gaining 30.28 per cent. With the launch, Biocon joins drugmakers Reliance Life Sciences, Hetero, Zydus Cadila and Intas that sell Bevicazumab in the domestic market.
The market size for Bevacizumab, both innovator product and biosimilars, in India is estimated at Rs 177 Crore.This is Biocon's second anti-cancer biosimilar in domestic market after Trastuzumab, which was launched in 2014 In FY17, branded formulations contributed Rs 548 crore to the consolidated revenue and accounted for 14 per cent of the total revenue. The segment revenue increased 24 per cent year-on-year basis last financial year but slowed down in the first half of FY 18. “The branded formulations business in first quarter of FY18 was impacted due to GST (goods and services tax) implications that led to a lower offtake. In Q2 FY18, however, this business has recovered on the back of channel restocking. For Q2, branded formulations reported a year on year growth of 29 per cent to Rs 176 crore. Good traction across various divisions of the business such as metabolic, oncology, comprehensive care and international business drove robust performance,” Subramanian added.