Biocon

“We expect H2 to be stronger than H1, supported by improving biosimilars momentum, as I talked about earlier, continued profitability improvement in generics, which we have demonstrated for the last couple of quarters and a progressive recovery at Syngene, which is demonstrated in Q2 over Q1.”

“We also remain comfortable with biosimilars delivering EBITDA margins in the mid-20s range that we have indicated earlier and improving on that as revenues scale and operating leverage improves.”

“To that extent, this quarter is an aberration since second half is expected to see strong growth compared to first half, we are holding onto margins, and the visibility on that is strong.”

“We are expecting a strong performance in H2, and as both Kedar and Shreehas have mentioned, it will be a strong double-digit growth”

“The last couple of years, we've had annualized growth of double-digit. We look forward to seeing how it goes in the current year as well. And the double-digit growth is something that we are focused on, Tushar.”

“We also secured EMA and U.K. MHRA approval for our new Insulin Glargine fill and finish line in Malaysia, which of course expands our ability to support the growing demand that we see across these markets.”

“EMA has approved our new line in Malaysia for supplies, and you will see that those supplies have commenced starting Q2 of this year, which is the quarter that has gone by.”

“The momentum across our portfolio expanded insulin manufacturing capacity through the commissioning of a second fill-finish line in Malaysia”

“Like we referred to insulin capacity addition, both internal and external, through CMO network. I think multiple capacities are coming up on stream, and that will be visible in the revenue line.”

“Biocon Biologics was recently awarded a landmark 10-year contract with a total contract value of $400 million under the Brazilian government's Productive Development Partnership, or the PDP program, as it is called, in partnership with Bahiafarma and Bionovis”

“Commercial supplies will begin in Q4FY27, and the full annual run rate will begin to show in the numbers for the full financial year, fiscal '28.”

“The consortium received 100% allocation under Brazil's PDP program, providing access to the country's public healthcare market and supporting the phased localization of the product.”

“In parallel, we added over $100 million in new contracts and major payor wins covering a majority of the U.S. population.”

“We also secured approximately 20 tender awards across key markets that included Italy, Spain, France, and Denmark.”

“The U.S. opens up in the subsequent year, so it does allow us time to prepare for a U.S. launch.”

“Market share for that is now at 34% in the U.S. alone. It has actually surpassed the originators.”

“During the quarter, we made multiple launches across several important therapeutic areas, including Ustekinumab autoinjector, Denosumab, and Aflibercept across several European markets.”

“For H1FY27, Generics business grew at 15% year-on-year, and the EBITDA stood at INR120 crores against an EBITDA loss of INR28 crores for the same period last year.”

“Biosimilars revenue for Q2 FY27 stood at INR2,809 crores, with an EBITDA for the quarter at INR623 crores.”

“we are the second biosimilar to have launched, and we have a relatively uncrowded space today because there hasn't been another launch since we've launched it.”

“See, the order visibility on aflibercept, aspart, ustekinumab, pertuzumab is very high.”

“It is a very limited competition space. It is just the innovators and us. So, demand here, we do not see a problem. It is as much as we can make.”

“So, before we take on more commercial payers on Aspart, we have to be careful.”

“I think we are seeing that we are actually not able to meet the full demand for Glargine.”

“EBITDA was at INR865 crores. The meaningful improvement in Generics profitability and sequential improvement in the Services business revenues helped support our overall performance.”

“Depreciation and amortization is in line with the intangibles that get capitalized for the new launches and the depreciation for the Malaysia line too. I think largely it should be in that line. There should not be a very large increase hereafter.”

“EBITDA margin was at 8%, up from 1% in the same quarter last year.”

“EBITDA for the quarter was at INR64 crores, as compared to INR7 crores in Q2 of last year.”

“So, your margins are stable, the pricing is reasonably stable, but there are several other Part D products that will see erosion faster.”

“Interest costs continued to trend lower during the quarter, declining 12% year-on-year to INR240 crores, following the actions taken to strengthen our balance sheet.”

“The benefit of interest cost reduction in the P&L has been visible since quarter 3 of fiscal '26 and should continue hereafter.”

“So unlikely that there will be a large increase hereafter. And as we start retiring debt in the subsequent quarters, in fact, it should come down.”

“we had a run rate of INR280 crores to INR300 crores per quarter, and that was in quarter 1 of last year.”

“The increase is largely for the working capital, which is required to fund the new launches.”

“this agreement secures the earliest licensed launch dates for our product across key global markets, including the EU and U.K. from early calendar 2027, and the U.S. from Q3 calendar 2028.”

“Building on this strong foundation, we also intend to progressively move our semaglutide opportunity forward as we continue to work with partners in several key markets, including Brazil, where we look to localize this opportunity with our partners.”

“We are also working with Biomm in Brazil on semaglutide, further extending our partnership-led approach into the growing GLP-1 opportunity.”

“Rhonda Duffy, our Chief Operations Officer, will retire from her current role in March 2027, having built a phenomenal team and significantly strengthened our commercial capabilities. George Kaliviotis has already joined us and will succeed her as COO starting April 2027.”

“On the technology front, Mukesh Rathi has joined us and will take over as the Chief Technology Officer starting January of 2027 from Mandar Ghatnekar.”

“Our commercial heads from North America, Europe, and emerging markets will now report directly to me. Matthew Erick, our Chief Commercial Officer for advanced markets, has decided to pursue opportunities outside Biocon.”

“Joshua Salsi, who has successfully led our North American Biologics business, will now take on an expanded role leading both our Biologics and Generics businesses in North America.”

“We witnessed a one-off deferral in revenue recognition on certain biosimilar shipments this quarter on account of logistics issues, including those related to the ongoing geopolitical situation. These amounted to approximately 5% of the revenues for the quarter.”

“Hence, that is a one-off situation, which you will see those revenues in Q3, which is why we quantified it and have said very clearly that those are Q2 revenues which you'll see in Q3.”

“The quantum is roughly $20 million or so.”

“In our company, we see it about 1% or so. This time, the quantum is high. That is the reason we called it out. These are not for new products. These are largely for insulin and mAbs, and that sales has been booked in the month of October already.”

“So, the incremental EBITDA pertaining to these shipments, Rusmik, will flow into quarter 3.”

“FY27 remains a transition year for Syngene as it continues to navigate the impact of reduced demand for a large biologics client, but we expect the trajectory of the business to improve as the year progresses.”

“There will be competition coming, so it is something that we should be aware of. It's a reality.”

“In Q2FY27, the group delivered a 2% year-on-year growth in operating revenues. The biopharmaceutical business grew 5% year-on-year, while the services revenues improved 13% quarter-on-quarter.”

“Our Pertuzumab biosimilar received positive CHMP opinion, becoming the first monoclonal antibody biosimilar recommended under the EMA's tailored clinical development approach.”

“We received FDA approval for Yesintek single-dose prefilled autoinjector, further strengthening our immunology offering in the U.S. and Canada.”

“For the H1FY27, our consolidated operating revenues grew 6% year-on-year to INR8,725 crores, and EBITDA stood at INR1,767 crores, translating to an EBITDA margin of 20% on a consolidated basis.”

“Our investments in R&D stood at 7% of revenues.”