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FY14 Results
2
Certain statements in this release concerning our future growth prospects are forward-looking statements,
which are subject to a number of risks, uncertainties and assumptions that could cause actual results to
differ materially from those contemplated in such forward-looking statements. Important factors that could
cause actual results to differ materially from our expectations include, amongst others general economic and
business conditions in India, our ability to successfully implement our strategy, our research and
development efforts, our growth and expansion plans and technological changes, changes in the value of the
Rupee and other currency changes, changes in the Indian and international interest rates, change in laws and
regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing
competition in and the conditions of the Indian biotechnology and pharmaceuticals industries, changes in
political conditions in India and changes in the foreign exchange control regulations in India. Neither our
company, nor our directors, nor any of their respective affiliates have any obligation to update or otherwise
revise any statements reflecting circumstances arising after this date or to reflect the occurrence of
underlying events, even if the underlying assumptions do not come to fruition.
Disclaimer
FINANCIAL HIGHLIGHTS
3
4
Financial Performance (FY14 )
Rs. crore
FY14 FY13 % Growth
Revenue 2,933 2,538 16%
EBITDA 743 596 25%
PAT
(Excluding Exceptional
Item)
414 324 28%
PAT 414 509* -19%
EPS 20.7 25.4
Recommended Dividend of Rs. 5/share (100%)
*Includes exceptional items, Rs 202 Crores, Net exceptional item Rs 185 Cr
5
FY14 Diversified revenue growth of
16%
Driven by:
o Biopharma Business: Rs. 2,138
crores, 14 % YoY increase
o Branded Formulations: Rs. 391
crores, 13% YoY growth
o Research Services: Rs. 715
crores, 28% YoY increase
• EBITDA margin @ 25%
• PAT margin @14 %
• Net Cash Positive @ Rs 552 Crores
Key Financial Highlights (FY14)
Add pic
6
Financial Performance (Q4-FY14)
Rs. crore
Q4FY14 Q4FY13 % Growth
Revenue 746 649 15%
EBITDA 193 124 56%
PAT (Excluding
Exceptional Item)
113 64 75%
PAT* 113 249* -55%
*Includes exceptional items, Rs 202 Crores, Net exceptional item Rs 185 Cr
KEY APPOINTMENTS
7
8
o B. Tech, IIT Bombay
o Ph.D., MIT, Cambridge, USA
o COO since 2006
o Joined Biocon as General Manager –
Operations, 1990
o Core member of the leadership team
o Played a pivotal role in the evolution of Biocon
over the last 24 years.
Appointed as CEO and Joint Managing Director of Biocon Ltd
Welcome Dr Arun Chandavarkar to the New Role
9
o Post Graduate in Pharmacology, University of
Mumbai
o MBA, Jamnalal Bajaj Institute, Mumbai.
o Over 25 years of experience in global pharma
o Wide marketing experience in India, Asia Pacific
and other Emerging Markets with international
companies like Novartis, GSK and Roussel Uclaf
(now part of Sanofi).
o Played diverse roles in Marketing, Sales, Business
Development, Corporate Strategy and M&A
o Prior to joining Biocon he was responsible for
Specialty Business Franchise as well as Business
Development and Licensing with Novartis, India
Ravi Limaye Joins as President - Marketing, Biocon
BUSINESS HIGHLIGHTS
10
11EMERGING MARKETS FOCUS
Novel
Molecules
Partnering
through
Licensing
Five
Strategic
Business Units
Generic Formulations
including ANDAs
Small
Molecules
Research
Services
Integrated
offerings
Progressing
to DevicesBiosimilars
(Insulins &
MAbs)
Rapidly growing, India-
centric business
Branded
Formulations
Biocon: Strategic Business Units
EMERGING MARKETS FOCUS
12
Small Molecules
o Good momentum in
immuno-suppressants and
Specialty Molecules
o Portfolio being optimized
o Focus on bottom line
o Moving away from
commoditized business
Moving Up the Value Chain
APIs
(Generic & Novel)
Generic
Formulations
(Including ANDAs)
o Continued investments to forward integrate from APIs to generic formulations,
including ANDAs
o First set of ANDAs to be filed in FY15
o Aim to build robust pipeline of difficult-to-make, technology-intensive molecules
o Focus on adding value to small molecules portfolio to complement biosimilars
MABs and Insulins
12
14
o Delivered strong growth
led by robust exports
o Expanding global
footprint, generic rh-
Insulin approved in over
55 countries
o Augmented
manufacturing capacities
at Bangalore to support
increase in demand
Generic Insulin
Malaysia Insulin Project on track
• Asia’s largest integrated Insulins manufacturing facility coming up as planned
• To be commissioned in FY 15, Commercialization post regulatory approvals
Drug Product Facility
Drug Substance Facility
CMD Meeting the team at Malaysia
16
Biosimilars: CANMAb™ - World’s Most Affordable
Trastuzumab Commercialized
o CANMAb™ launched post regulatory
approvals in India
o Benefits Her- 2 positive breast cancer
patients as an affordable
trastuzumab
17
o Largest domestic Branded Biologics company
o FY 14 Revenue Rs 391 cr, Growth 13%
o Grew over twice the pace of industry growth of
6%
o Growth driven by flagship brands BIOMAb EGFR,
Insugen and Basalog
o Over 40,000 patients initiated into Insupen
therapy in FY14
o Focus on profitable growth, going forward
o Focus on Patient Service Model- Over 1 lakh
patients visits conducted
Branded Formulations: Grows Ahead of the market
* Source: Insulin Covered Market AIOCD Sep 13
18
ALZUMAb™ - 'First in Class' Novel Biologic for Psoriasis
o Encouraging response from
patients and physicians
o 100’s of patients are being
treated with ALZUMAb™
across India
o As a novel product, it needs
significant promotional
efforts to create awareness
about its benefits
Key Recognitions For ALZUMAb™
ALZUMAb™ awarded BioSpectrum
Biopharma Product of the Year - 2013
Sir JC Memorial Award 2013 for innovation
to Biocon for developing ALZUMAb ™
20
Novel Molecules: Oral Insulin IN-105 & Itolizumab
IN -105
o Shows clear efficacy as a prandial insulin
in lowering post-prandial glucose levels
o Initial set of global trials underway in
collaboration with BMS
ITOLIZUMAb
o Ongoing discussions with potential partners
o Preparatory work for trials for expanded indications underway
21
Biocon Partnership with Quark Pharma
o Licensing & Collaboration agreement
for developing siRNA (small interfering
RNA) based novel therapeutics
o Biocon & Quark to co-develop,
manufacture & commercialize
QPI-1007, a novel siRNA drug
candidate, for India and other markets
o QPI-1007 has the potential to treat
serious ophthalmic conditions in
thousand of patients
o Biocon will get access to Quark’s siRNA
technology platform to develop novel
therapeutics for unmet medical needs
22
Biocon Collaborates with Advaxis for
a Novel Cancer Immunotherapy
o Exclusive agreement to co-develop and
commercialize ADXS-HPV for HPV-
associated cervical cancer in India,
other emerging markets
o Advaxis will manufacture and supply
ADXS-HPV and Biocon will
commercialize the product
o ADXS-HPV will enable Biocon to
address unmet medical need in India
for cervical cancer patients
o Biocon will get access to Advaxis’
proprietary immunotherapy technology
to develop novel therapeutics
o Cervical Cancer one of the leading
causes of death in women in India
o Over 1,34,000 women diagnosed
every year
o 366 million women of the age of 15
years & above are at a risk of
developing cervical cancer
o Through ADXS-HPV for HPV-
associated cervical cancer we will be
able to make a significant difference
to these women
23
Research Services: Syngene & Clinigene
Robust growth at 28 %
FY 14 Revenue Rs 715 Crores doubled in three years ( FY 2011)
Strong growth across Chemistry, Biology and Clinical service platforms
Syngene:
• Baxter Global Research Center- Syngene’s third large scale dedicated
research center set up
• Successful US-FDA inspection of Syngene’s quality system with no 483s
• Addition of scale and capacity - Phase I expansion of API pilot plant
near completion -will allow Syngene to double its manufacturing
capacity, a precursor to significant growth projected in FY15
Clinigene:
• Strong Order Book build up in HPU
• Development of a Center of Excellence for small and large molecule
bioanalytical services augurs well for business
24
o Baxter Global Research Center (BGRC) at
Syngene, Biocon Park inaugurated by Shri
Ghulam Nabi Azad, the Minister of Health
and Family Welfare, Govt. of India
o Collaboration for Research & Development
of medical products and devices to serve
patients both in India and around the
world
o Over 100 multidisciplinary Syngene
scientists will be based at this dedicated
Center of Excellence
Baxter Global Research Center at Syngene
Biocon Ranked No 6 in Global Biotech Employers List
11
*
* Partial List represented here| Source-
Only Asian Company to
appear in the list
– 2 years in a row now
Debuted at # 19 last year
Recognized for
Clarity of Vision
Being Socially responsible
Quality Research
Corporate Social Responsibility
26
NEW INITIATIVES
27
Nobel Laureate at Biocon Research Centre
o Addressed Biocon scientists on ‘New
Directions in Cancer Research’ at
BRC
o Dr Harold Varmus Wing at Biocon
Research Centre Inaugurated by him
Biocon Academy 1st batch commenced in Jan
2014
o 16 weeks full time one-of-its-kind Biocon-KGI Certificate program
o Aimed at making biotech graduates employable
o Advanced Learning and Job Skill Training
o Best KGI faculty and Subject Matter Experts from Biocon
o Technology based real time /synchronous classes
o Nine course modules will prepare students for the biotech
companies
A batch of 30 students with varied background with KGI faculty at Biocon Academy
Biocon KGI Program in Biosciences
o Undergoing 16 weeks of intense Advanced Learning program
o 40 Hours of intensive interaction with local and international
industry experts
o 80 Hours of industry visits, including IBAB, Bangalore
o 90 Hours of hands-on training at Biocon facilities
o 192 Hours of classroom sessions
o 1st batch graduating
by end-May, ready
for placements
o 2nd batch of Biocon
KGI Certificate
Program to be
inducted in June
31
New Initiative : Telemedicine Services
Partnered with Odisha government
o PPP initiative in collaboration with
Odisha Trust of Technical Education
and Training (OTTET)
o To set up e-Health centres in rural
Odisha
o 51,000 villages to potentially get
access to healthcare at door step
o To identify, train and provide technical
assistance for setting up diagnostic
centers
o To set up diabetes and cancer centres
and link them with speciality hospitals
and tertiary care institutions
32
Making a difference
Infrastructure: Biocon Nagar
o Many families have moved
into homes equipped with a
Solar Light, toilet and
bathroom.
o Spoken English classes being
held for children
o 37 children from Grade 7 and
above attend these classes
HEALTHCARE:
o Oral cancer screening: 5,000 high-risk people
have been benefited
o Over 600 women underwent Cervical Cancer
screening this FY
o 9 Arogya Raksha Clinics witnessed consistent
patient footfall
o Health checkups, nutritional supplements
distribution and awareness workshops held for
tackling child malnutrition
EDUCATION:
o 100,000 children received maths work books
o Teachers’ orientation program covers > 400 govt
school teachers
o Pre-tests conducted in 45 schools to study
impact of maths works books
33
LOOKING AHEAD
Looking Ahead into FY15
34
o Will continue to work towards our
aspirational revenue target of U$1 Bn for 2018
o Insulins, Branded Formulations and Research
Services to drive near-term growth
momentum
o First set of ANDAs to be filed
o Projects in development pipeline to progress
to clinic
o Commissioning of the Malaysia Insulin facility
to augment global business
o Novel molecule licensing could be a potential
opportunity
o Outlook for FY15 continues to be positive as
we balance revenue growth with R&D
investments
THANK YOU
35
kiran.mazumdar@biocon.com
Reach out to Kiran Mazumdar-Shaw:

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Biocon FY2014 Results

  • 2. 2 Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others general economic and business conditions in India, our ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currency changes, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing competition in and the conditions of the Indian biotechnology and pharmaceuticals industries, changes in political conditions in India and changes in the foreign exchange control regulations in India. Neither our company, nor our directors, nor any of their respective affiliates have any obligation to update or otherwise revise any statements reflecting circumstances arising after this date or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition. Disclaimer
  • 4. 4 Financial Performance (FY14 ) Rs. crore FY14 FY13 % Growth Revenue 2,933 2,538 16% EBITDA 743 596 25% PAT (Excluding Exceptional Item) 414 324 28% PAT 414 509* -19% EPS 20.7 25.4 Recommended Dividend of Rs. 5/share (100%) *Includes exceptional items, Rs 202 Crores, Net exceptional item Rs 185 Cr
  • 5. 5 FY14 Diversified revenue growth of 16% Driven by: o Biopharma Business: Rs. 2,138 crores, 14 % YoY increase o Branded Formulations: Rs. 391 crores, 13% YoY growth o Research Services: Rs. 715 crores, 28% YoY increase • EBITDA margin @ 25% • PAT margin @14 % • Net Cash Positive @ Rs 552 Crores Key Financial Highlights (FY14) Add pic
  • 6. 6 Financial Performance (Q4-FY14) Rs. crore Q4FY14 Q4FY13 % Growth Revenue 746 649 15% EBITDA 193 124 56% PAT (Excluding Exceptional Item) 113 64 75% PAT* 113 249* -55% *Includes exceptional items, Rs 202 Crores, Net exceptional item Rs 185 Cr
  • 8. 8 o B. Tech, IIT Bombay o Ph.D., MIT, Cambridge, USA o COO since 2006 o Joined Biocon as General Manager – Operations, 1990 o Core member of the leadership team o Played a pivotal role in the evolution of Biocon over the last 24 years. Appointed as CEO and Joint Managing Director of Biocon Ltd Welcome Dr Arun Chandavarkar to the New Role
  • 9. 9 o Post Graduate in Pharmacology, University of Mumbai o MBA, Jamnalal Bajaj Institute, Mumbai. o Over 25 years of experience in global pharma o Wide marketing experience in India, Asia Pacific and other Emerging Markets with international companies like Novartis, GSK and Roussel Uclaf (now part of Sanofi). o Played diverse roles in Marketing, Sales, Business Development, Corporate Strategy and M&A o Prior to joining Biocon he was responsible for Specialty Business Franchise as well as Business Development and Licensing with Novartis, India Ravi Limaye Joins as President - Marketing, Biocon
  • 11. 11EMERGING MARKETS FOCUS Novel Molecules Partnering through Licensing Five Strategic Business Units Generic Formulations including ANDAs Small Molecules Research Services Integrated offerings Progressing to DevicesBiosimilars (Insulins & MAbs) Rapidly growing, India- centric business Branded Formulations Biocon: Strategic Business Units EMERGING MARKETS FOCUS
  • 12. 12 Small Molecules o Good momentum in immuno-suppressants and Specialty Molecules o Portfolio being optimized o Focus on bottom line o Moving away from commoditized business
  • 13. Moving Up the Value Chain APIs (Generic & Novel) Generic Formulations (Including ANDAs) o Continued investments to forward integrate from APIs to generic formulations, including ANDAs o First set of ANDAs to be filed in FY15 o Aim to build robust pipeline of difficult-to-make, technology-intensive molecules o Focus on adding value to small molecules portfolio to complement biosimilars MABs and Insulins 12
  • 14. 14 o Delivered strong growth led by robust exports o Expanding global footprint, generic rh- Insulin approved in over 55 countries o Augmented manufacturing capacities at Bangalore to support increase in demand Generic Insulin
  • 15. Malaysia Insulin Project on track • Asia’s largest integrated Insulins manufacturing facility coming up as planned • To be commissioned in FY 15, Commercialization post regulatory approvals Drug Product Facility Drug Substance Facility CMD Meeting the team at Malaysia
  • 16. 16 Biosimilars: CANMAb™ - World’s Most Affordable Trastuzumab Commercialized o CANMAb™ launched post regulatory approvals in India o Benefits Her- 2 positive breast cancer patients as an affordable trastuzumab
  • 17. 17 o Largest domestic Branded Biologics company o FY 14 Revenue Rs 391 cr, Growth 13% o Grew over twice the pace of industry growth of 6% o Growth driven by flagship brands BIOMAb EGFR, Insugen and Basalog o Over 40,000 patients initiated into Insupen therapy in FY14 o Focus on profitable growth, going forward o Focus on Patient Service Model- Over 1 lakh patients visits conducted Branded Formulations: Grows Ahead of the market * Source: Insulin Covered Market AIOCD Sep 13
  • 18. 18 ALZUMAb™ - 'First in Class' Novel Biologic for Psoriasis o Encouraging response from patients and physicians o 100’s of patients are being treated with ALZUMAb™ across India o As a novel product, it needs significant promotional efforts to create awareness about its benefits
  • 19. Key Recognitions For ALZUMAb™ ALZUMAb™ awarded BioSpectrum Biopharma Product of the Year - 2013 Sir JC Memorial Award 2013 for innovation to Biocon for developing ALZUMAb ™
  • 20. 20 Novel Molecules: Oral Insulin IN-105 & Itolizumab IN -105 o Shows clear efficacy as a prandial insulin in lowering post-prandial glucose levels o Initial set of global trials underway in collaboration with BMS ITOLIZUMAb o Ongoing discussions with potential partners o Preparatory work for trials for expanded indications underway
  • 21. 21 Biocon Partnership with Quark Pharma o Licensing & Collaboration agreement for developing siRNA (small interfering RNA) based novel therapeutics o Biocon & Quark to co-develop, manufacture & commercialize QPI-1007, a novel siRNA drug candidate, for India and other markets o QPI-1007 has the potential to treat serious ophthalmic conditions in thousand of patients o Biocon will get access to Quark’s siRNA technology platform to develop novel therapeutics for unmet medical needs
  • 22. 22 Biocon Collaborates with Advaxis for a Novel Cancer Immunotherapy o Exclusive agreement to co-develop and commercialize ADXS-HPV for HPV- associated cervical cancer in India, other emerging markets o Advaxis will manufacture and supply ADXS-HPV and Biocon will commercialize the product o ADXS-HPV will enable Biocon to address unmet medical need in India for cervical cancer patients o Biocon will get access to Advaxis’ proprietary immunotherapy technology to develop novel therapeutics o Cervical Cancer one of the leading causes of death in women in India o Over 1,34,000 women diagnosed every year o 366 million women of the age of 15 years & above are at a risk of developing cervical cancer o Through ADXS-HPV for HPV- associated cervical cancer we will be able to make a significant difference to these women
  • 23. 23 Research Services: Syngene & Clinigene Robust growth at 28 % FY 14 Revenue Rs 715 Crores doubled in three years ( FY 2011) Strong growth across Chemistry, Biology and Clinical service platforms Syngene: • Baxter Global Research Center- Syngene’s third large scale dedicated research center set up • Successful US-FDA inspection of Syngene’s quality system with no 483s • Addition of scale and capacity - Phase I expansion of API pilot plant near completion -will allow Syngene to double its manufacturing capacity, a precursor to significant growth projected in FY15 Clinigene: • Strong Order Book build up in HPU • Development of a Center of Excellence for small and large molecule bioanalytical services augurs well for business
  • 24. 24 o Baxter Global Research Center (BGRC) at Syngene, Biocon Park inaugurated by Shri Ghulam Nabi Azad, the Minister of Health and Family Welfare, Govt. of India o Collaboration for Research & Development of medical products and devices to serve patients both in India and around the world o Over 100 multidisciplinary Syngene scientists will be based at this dedicated Center of Excellence Baxter Global Research Center at Syngene
  • 25. Biocon Ranked No 6 in Global Biotech Employers List 11 * * Partial List represented here| Source- Only Asian Company to appear in the list – 2 years in a row now Debuted at # 19 last year Recognized for Clarity of Vision Being Socially responsible Quality Research
  • 28. Nobel Laureate at Biocon Research Centre o Addressed Biocon scientists on ‘New Directions in Cancer Research’ at BRC o Dr Harold Varmus Wing at Biocon Research Centre Inaugurated by him
  • 29. Biocon Academy 1st batch commenced in Jan 2014 o 16 weeks full time one-of-its-kind Biocon-KGI Certificate program o Aimed at making biotech graduates employable o Advanced Learning and Job Skill Training o Best KGI faculty and Subject Matter Experts from Biocon o Technology based real time /synchronous classes o Nine course modules will prepare students for the biotech companies A batch of 30 students with varied background with KGI faculty at Biocon Academy
  • 30. Biocon KGI Program in Biosciences o Undergoing 16 weeks of intense Advanced Learning program o 40 Hours of intensive interaction with local and international industry experts o 80 Hours of industry visits, including IBAB, Bangalore o 90 Hours of hands-on training at Biocon facilities o 192 Hours of classroom sessions o 1st batch graduating by end-May, ready for placements o 2nd batch of Biocon KGI Certificate Program to be inducted in June
  • 31. 31 New Initiative : Telemedicine Services Partnered with Odisha government o PPP initiative in collaboration with Odisha Trust of Technical Education and Training (OTTET) o To set up e-Health centres in rural Odisha o 51,000 villages to potentially get access to healthcare at door step o To identify, train and provide technical assistance for setting up diagnostic centers o To set up diabetes and cancer centres and link them with speciality hospitals and tertiary care institutions
  • 32. 32 Making a difference Infrastructure: Biocon Nagar o Many families have moved into homes equipped with a Solar Light, toilet and bathroom. o Spoken English classes being held for children o 37 children from Grade 7 and above attend these classes HEALTHCARE: o Oral cancer screening: 5,000 high-risk people have been benefited o Over 600 women underwent Cervical Cancer screening this FY o 9 Arogya Raksha Clinics witnessed consistent patient footfall o Health checkups, nutritional supplements distribution and awareness workshops held for tackling child malnutrition EDUCATION: o 100,000 children received maths work books o Teachers’ orientation program covers > 400 govt school teachers o Pre-tests conducted in 45 schools to study impact of maths works books
  • 34. Looking Ahead into FY15 34 o Will continue to work towards our aspirational revenue target of U$1 Bn for 2018 o Insulins, Branded Formulations and Research Services to drive near-term growth momentum o First set of ANDAs to be filed o Projects in development pipeline to progress to clinic o Commissioning of the Malaysia Insulin facility to augment global business o Novel molecule licensing could be a potential opportunity o Outlook for FY15 continues to be positive as we balance revenue growth with R&D investments