You are here: Home » Companies » News
Business Standard

Biocon to increase R&D spend by 20-30%

BS Reporter  |  Hyderabad 

Biotechnology major Biocon, an integrated healthcare company delivering bio-pharmaceutical solutions, will increase its spend on research and development by about 20 to 30 per cent every year as its products are getting into advance stages of development, according to the company chairperson and managing director Kiran Mazumdar Shaw.

“There is a great deal of risk aversion among the big pharma as the return on investment is getting tough and also there is a high chance of failure,” she pointed out.

Also, the small are not getting enough capital to carry out innovations. Several big pharma are cutting their spend on innovation-driven products and preferring the generics segment due to the global financial crisis. This is proving an opportunity for some Indian companies to partner with global companies for innovations as the costs here are still less comparatively. “The costs of failure is also affordable in India,” she said.

According to Shaw, this is the right time to focus on innovations as most companies are exiting, making the markets less cluttered. This will ensure a better success rate and will boost Biocon to take bigger risks in phases. Ideally, the R&D spend is pegged at around 10 to 15 per cent of the total revenues. The company, for the first half of the current financial year, reported revenues of about Rs 734 crore (Rs 593 crore in the corresponding period last year) and a profit after tax of Rs 100 crore.

Speaking to reporters on the sidelines of “Emerging India: Strategic innovation in a flat world”, organised by the Strategic Management Society at the Indian School of Business, she said, “ IN 105, the oral insulin drug from Biocon stable, will go for the three-phase of clinical trials in a year. The company will take another year for collating the data to measure its success.”

With contract research organisations across the world looking to cut down the expenses, Shaw said there would be increased outsourcing to India and the global companies.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, December 14 2008. 00:00 IST
RECOMMENDED FOR YOU
.