Biocon plans $150-million capex in two years
Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Biopharmaceutical firm Biocon plans to invest $150 million in capital expenditure over the next couple of years, with $100 million earmarked for its biologics division and the remaining for the generics business, top company officials said.A large part of the biologics investment 'will go to enhance the capacities in Malaysia,' Kedar Upadhye, chief financial officer of Biocon Biologics, told analysts in an earnings call on Friday. Capex in biologics is expected to get moderated after a couple of years, he said.Siddharth Mittal, managing director and chief executive officer of Biocon, said, 'For generics, we will be looking at $50 million capex next year and with that, majority of our ongoing capex programmes will come to an end and there will be a small bit of maintenance capex going forward.'Biocon had on Thursday announced its fourth quarter result with a 153% surge in net profit to Rs 344 crore, while consolidated total revenue for Q4 was Rs 4,454 crore, a growth of 12% the previous year.'This quarter's performance was bolstered by strong growth in generics, steady progress in biosimilars and ongoing traction in research services,' Kiran Mazumdar-Shaw, chairperson, Biocon Group, said at the analyst call.During the quarter, Biocon launched lenalidomide - a medication used to treat types of multiple myeloma - and oncology drug dasatinib in the US, and anti-diabetes medication liraglutide in the UK.One of the primary focus areas for the company going ahead will be its peptide portfolios, especially GLP1s which it sees as the key driver of future growth.The company is also betting big on its biosimilars that continued to build shares in global markets with four biosimilars recording sales of $200 million each in FY25.It plans to launch oncology drug bevacizumab in the US in the first half of this year when it also expects approval for diabetes drug insulin aspart, according to Matthew Erick, chief commercial officer - advanced markets at Biocon Biologics. 'We have an incredible oncology portfolio and it will be a nice addition to our portfolio and we will be well positioned with our sales force,' he said.It has already launched yesintek (biosimilar Ustekinumab), one of the first biosimilars to Stelara in the US.Analysts have maintained a strong near-to-mid-term outlook on the company based on multiple recent product launches and planned launches this year.'Biocon Q4 result was strong and just in line with our estimates, driven by the launch of gRevlimid and Dasatinib in the US,' PhillipCapital's pharma analyst Surya Patra said in a report.He said they remain optimistic about the company, citing a strong biosimilar pipeline and recent clearance of Bengaluru and Malaysia facilities, 'paving the way for the launch of Bevacizumab, Insulin aspart biosimilars in the US.'Additionally, the recent launch of ustekinumab biosimilar (a drug used to treat autoimmune conditions) and strong positioning of biosimilar aflibercept (used to treat eye conditions) in the US augurs well for the company, Patra added.It received approvals for liraglutide in the EU, and everolimus (Zortress) tablets in the US. It partnered with Civica Inc, a US-based not-for-profit, supporting affordable insulin access for people with diabetes.'With a surge in global insulin demand, given our global scale manufacturing capacities, we are well-positioned to capitalise on this large opportunity,' Shaw said.During the quarter, the company's arm Syngene expanded its biologics manufacturing footprint through an acquisition of a facility in the US.The company is also looking at raising Rs 4,500 crore through a combination of QIP and private placement. The proceeds of the funds raised will be primarily used to meet financial obligations towards commitments and put options from the structured debt that the company has from investments in its biologics unit.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
37 minutes ago
- Time of India
Tourism dept plans international roadshows to attract tourists to Goa
Panaji: The tourism department plans to conduct international roadshows in the Gulf region, Denmark, Norway, Uzbekistan, Finland, Sweden, and Poland this year. 'These are the top countries based on social media statistics and the quantum of visitors,' said a department note. The department hopes to attract international tourists to Goa, including first-time travellers for wellness, MICE, leisure, and medical tourism. The department could tentatively spend at least Rs 4.3 crore on the roadshows, which officials say are crucial to depict Goa and India as favourable tourism destinations. As of now, the dates for the roadshows have not been announced, but the department has moved to appoint an event management agency to host the tourism roadshows. The department stated that the international roadshows help enhance Goa's 'visibility and presence' while also providing a platform for Goan tour operators, travel agents, hoteliers, and airlines to network and connect with their international counterparts. 'The target of this participation is to attract international tourists to Goa for various segments of tourism, and accordingly, the agency will have to evolve a strategy to achieve these goals,' said a department official. A six-member team from Goa is likely to participate in the international tourism roadshows. While critics, including the Travel and Tourism Association of Goa, have expressed concern about the expenditure on these roadshows, the tourism department believes that such outreach helps Goa compete with international markets. 'We need to promote Goa as a safe and world-class tourism destination to ensure a sustained flow of tourists into Goa. We will present a marketing plan for approval,' said an official. In April, the tourism department's empowered committee called for a rethink on the department's participation in roadshows and expos, particularly in foreign countries. The department's top officials agreed to 'restructure and streamline' roadshows and trade shows — both domestic and international — based on a cost-benefit analysis. At that time, the tourism department said that participation in trade expos and roadshows 'must be aligned with clear performance benchmarks and measurable outcomes' so that govt funds were efficiently utilised.
Time of India
38 minutes ago
- Time of India
Deported from US, bizman arrested in 30cr export fraud
New Delhi: Economic Offences Wing of Delhi Police arrested Angad Pal Singh, a businessman, in connection with a massive Rs 30.47-crore export fraud involving forged foreign inward remittance certificates (FIRCs). Singh was taken into custody on June 2 after being deported from the US. Singh, who helped his father in the business of auto spare parts, was earlier arrested by Central Bureau of Investigation in another fraud case and was later handed over to EOW for his role in this export scam. Police said a case was registered in 2017 on the complaint of a private bank. The complainant reported that 467 fake FIRCs were submitted to the bank by their 18 account holders (17 firms) during the processing of their export documents. The fake FIRCs were for the period from Sept 26, 2013, to Oct 21, 2015. "Upon receipt of the FIRCs, the bank issued bank realisation certificates (BRCs) to the account holders, who availed trade (export) benefits from the office of Director General of Foreign Trade (DGFT) under the foreign trade policy. All these FIRCs, which ran into crores of rupees, were purportedly issued from a bank at Bhikaji Cama Place," police said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Amazon CFD : La clave para un ingreso extra (Conoce más) Empezar ahora Registrarse Undo Under the foreign trade policy, exporters are entitled to two key benefits: duty drawback and scrips. Duty drawback is directly credited to the exporter's account by the customs department once the goods are successfully exported through designated ports or depots. The second benefit, scrips, is provided by DGFT as an incentive for exporters, allowing exemption from import duties. "These scrips are issued only after the exporter receives payments and submits the necessary documents to an authorised dealer bank. Upon verification, the bank will issue a bank realisation certificate, which the exporter will present to DGFT to claim the benefits," police said. The investigation revealed that Singh, along with his father Surinder Singh and brother, owned five firms and managed the affairs of these companies with them. "They created forged FIRCs and obtained benefits of duty credit scrips worth Rs 30.47 crore and sold them in the open market," DCP (EOW) Vikram Porwal said. The remittance was shown to be received at a bank. They opened bank accounts in a private bank and processed the documents in conspiracy with bank employees. When the complaint was filed, they fled the country.
Time of India
38 minutes ago
- Time of India
Ahmedabad Municipal Corporation to review Rs 661 crore road contract at 34% cost hike
Ahmedabad: A Rs 661.25 crore road resurfacing contract, marked up by 34% over its estimated cost, is set to be reviewed by the road and building committee of the Ahmedabad Municipal Corporation on June 9. This proposal, intended for a single company, follows two previous large contracts awarded to the same firm: Rs 536 crore in 2020 and Rs 641 crore in 2023. Although the corporation employs consultants for roadwork cost estimation, sources indicate that approving a tender at 34% above the estimate suggests possible errors in the initial assessment. Concerns are mounting over persistent cost inflation and quality issues. In 2017, roads resurfaced under a Rs 450 crore project reportedly deteriorated severely after monsoon, prompting a vigilance inquiry by the corporation. Notices were issued to seven additional engineers, and over 90 other officials faced disciplinary action. Three contractors were blacklisted. Additionally, a scandal involving fake bitumen bills for road resurfacing emerged, leading to police complaints against two contractors. Despite this, since 2018, the AMC has routinely approved road resurfacing tenders at 20% to 34% above estimates. On April 17, 2023, the road and building committee approved a Rs 641 crore proposal, 26.90% above its Rs 505 crore estimate. In 2020, a single Rs 536.03 crore tender for various road projects was approved at a 34% markup. Similarly, a 2018-19 tender for Rs 534 crore was approved against an estimated Rs 353 crore. Sources indicate that the 2023 Rs 641 crore tender, awarded to a single company, also saw an additional Rs 26 crore approved for bitumen cost differences. "Such clauses, common in all tenders, consistently lead to approvals significantly exceeding initial estimates, suggesting potential errors in the estimation process," said sources. The AMC issues two types of road resurfacing tenders: one for roads wider than 60 feet, awarded to a single company for Rs 500-600 crore annually rate contract, and another for roads narrower than 60 feet, awarded to different companies. Tenders are approved at 25-34% above estimated costs, with varying warranty periods: five years for roads wider than 60 feet and three years for narrower roads. Iconic and RCC roads are also being constructed with tenders approved at 25-30% above estimated costs.
