Biocon banks on weight-loss drugs, raises stake in biosimilar arm
The Bengaluru-headquartered company is relying on its existing partnerships and vertical integration in various markets, along with its expertise in the segment, to capture a significant share of the fast-growing global market. “We know what it takes to bring these types of complex medicines to market,” the CEO said.
The biopharmaceutical industry’s generic products business contributed 18% to total revenue, up 24% year on year. ₹774 crore in the September quarter, driven by recent launches, particularly liraglutide, in the US and Europe.
The company reported a 21% year-on-year increase in consolidated revenue on Tuesday. ₹Earnings before interest, taxes, depreciation and amortization (EBIT) increased by 29% to Rs 4,389 crore. ₹928 crore in the second quarter of 2025-26.
“Liraglutide is a key driver of this growth, particularly in the European market where we supply the product to our partners,” he said.
The company has launched generic liraglutide in Europe and the UK and is awaiting approval in South American markets as well as other markets such as the US later this fiscal year.
The company has applied for regulatory approval of semaglutide in markets such as Canada and Brazil, where it will be off-patent next year.
“Applications will continue in many other markets from the third and fourth quarter,” Mittal said, adding that he expects approval in Canada and Brazil in 2026-27.
Both semaglutide and liraglutide are GLP-1 (glucagon-like peptide-1) receptor agonists; It is a class of drugs used to treat type 2 diabetes and for long-term weight control. The global market for GLP-1 drugs is expected to reach $95 billion by 2029-30, according to Goldman Sachs.
It also announced net profit ₹85 crore compared to net loss ₹16 crore in the previous year quarter.
Biocon, which had net debt of $1.2 billion during the quarter, closed after increasing its structured debt obligations with commercial paper as well as Goldman Sachs and Kotak Mahindra Bank. ₹4,500 crore ($507.7 million) through qualified institutional placement (QIP) in June 2025.
“This cleans out our balance sheet… all these tools add up to roughly the annual interest cost ₹“300 crore, we will start leveraging it on the profit before tax (PBT) line next year,” Mittal said.
This allowed it to increase its stake in biosimilar subsidiary Biocon Biologics from 71% to 79%. “Bank and bond debt, which is approximately $1.2 billion, remains unchanged,” he said.
The company had earlier said that its board was considering the strategic merger of Biocon Biologics with the parent entity.
competitive advantage
Biocon is not the only company racing to launch semaglutide in multiple markets. Many Indian and global generic companies such as Dr Reddy’s Laboratories Ltd, Sun Pharmaceutical Industries Ltd, Torrent Pharmaceuticals Ltd, Sandoz Group AG have stated that they plan to launch the drug once the patent expires.
However, Mittal believes Biocon’s existing portfolio, including liraglutide, gives it an advantage in a highly competitive market. The company was the first to launch generic liraglutide in the UK.
“Applying is one thing, but getting approved is the most important thing,” he said. “We are vertically integrated, we make our own drug substance, drug product and devices, and we know that some of these devices can be very complex, difficult for patients to adopt… we are very well positioned as an integrated player,” he added.
He said the company already has the infrastructure and supply chain to deliver these drugs to its partners and is investing in the space to achieve “major revenue growth.”
Biosimilar growth
Biosimilars business accounts for 61% of Biocon’s total revenue. ₹2,721 crore, up 25% year-on-year.
Revenues increased by 11% sequentially, driven by expansion of market share in core therapeutic areas and successful new product launches. Biocon Biologics has launched four biosimilar products in major global markets in 2025-26 and is on track to launch osteoporosis and cancer drug Denosumab later this financial year.
The U.S. Food and Drug Administration’s new draft guidelines on biosimilars, which aim to speed development by simplifying biosimilar studies and reducing unnecessary clinical testing, will increase competition but could also benefit the company, Mittal said.
USFDA also plans to facilitate the development of biosimilars as interchangeable with branded biologics. A replaceable biosimilar, designated by the US regulatory authority, allows the drug to be used in place of the original biologic at the pharmacy level without the need for physician intervention.
“With 10 biosimilars on the market, we know how to build that solid dossier that will allow us to get waivers from phase three trials and tighten development timelines… which will definitely benefit us,” Mittal said.
“This is of course a positive step when it comes to the interchangeability guide because it allows you to take market share and compete better against the brand,” he said.
Biocon has two interchangeable biosimilars: insulin glargine and insulin aspart, both approved in the US.
Biocon’s share price closed 5.22% higher on the National Stock Exchange on Wednesday. ₹405.20 each. The stock is up about 23% in the last six months. In comparison, Nifty Pharma gained 7.06% in the same period.
