Biocon eyes stronger H2FY27 growth on back of recent US product launches

Biocon expects momentum to strengthen in H2FY27, driven by new US biosimilar and generic launches, improved operating leverage and a favourable product mix

Biocon expects business momentum to strengthen in the second half of financial year 2026-27 (H2FY27), banking on a series of recent product launches in its primary US market, as the company looks to build on the strong start to FY27.

 

The biotechnology company reported a 16.5 per cent year-on-year (Y-o-Y) rise in consolidated revenue from operations to ₹3,572 crore for the quarter ended June 30 (Q1FY27), while net profit more than quadrupled to ₹141 crore from ₹31 crore a year ago. Biopharma, comprising biosimilars and generics, contributed 83 per cent to consolidated revenue during the quarter.

 

The management said recently launched products in the US, including biosimilar denosumab (monoclonal antibody used to treat bone loss from cancer treatments) brands Bosaya and Aukelso, biosimilar aflibercept Yesafili (used in treating retinal eye diseases), and generic liraglutide (used in managing type-2 diabetes), are expected to drive growth over the coming quarters. While initial revenues from liraglutide have already started reflecting in the June quarter, the contribution is expected to increase as the launches gain traction.

 

 

"The second half has to be much more exciting than the first half," Shreehas Tambe, managing director and chief executive officer (MD & CEO) of Biocon, said during the company's post-results earnings call. He added that the combination of new product launches and the company's expanding presence in the US market would support stronger revenue and margin performance later in FY27.

 

Tambe said Biocon has already begun seeing encouraging customer interest for Yesafili, its biosimilar version of blockbuster eye drug Eylea, which was launched in the US earlier this month. The company believes its limited launch lead before additional competitors enter the market will help establish customer relationships and support commercial uptake.

 

Biocon also said generic liraglutide has become operational in the US, with initial revenues beginning to flow during Q1FY27. The company expects the product to contribute more meaningfully in subsequent quarters while also pursuing opportunities in Europe.

 

The company maintained that growth in H2FY27 would also be supported by improved operating leverage, a favourable product mix, and lower financing costs following its balance-sheet optimisation efforts.

 

While Biopharma remained the key growth engine, Biocon acknowledged that its research services business, Syngene, continues to face demand headwinds. The company said the business is expected to perform better in the second half under its new leadership, as commercial execution improves and investments in contract development and manufacturing capabilities begin to yield results.

 

Biocon maintained that the US remains its biggest growth market, and said it does not expect the current uncertainty around potential US pharmaceutical tariffs to alter its strategy at this stage, citing the role of biosimilars and generics in improving healthcare affordability.