Amid weak showing by biosimilars and generics, downgrade pressure on Biocon

Analysts expect ramp-up in biosimilars to be gradual

A weaker-than-expected performance of the biosimilars segment and muted growth in the generics segment dented the March quarter showing of Biocon. Biosimilars revenues were down 14 per cent on a sequential basis because of price erosion and higher inventories in the channel in the previous quarter. The segment is the largest among its business units and accounts for 36 per cent of its overall revenues.
 
Brokerages say the sequential decline was due to the flattish market share trajectory of oncology biosimilars (Pegfilgrastim, Trastuzumab) in the American market, with volumes continuing to trend below the pre-Covid levels and price decline