Biosimilar ramp-up to drive growth for Biocon in FY27
New biosimilar launches and scaling-up of recently launched products are expected to drive growth for Biocon in FY27 as the company moves from a heavy investment phase towards improving capacity utilization, profitability and margins in its biopharmaceutical businesses, managing director and CEO Shreehas Tambe told reporters on Friday.
Biocon announced its financial results for the fourth quarter and full FY26 late on Thursday.
“We have successfully integrated our biosimilars and generics business to create a single biopharmaceutical business with capacity and reach at greater scale… the focus now shifts towards improving the utilization of the capacity we have created, expanding margins and delivering steady improvement in terms of return on capital employed,” said Tambe, who previously headed the biosimilars subsidiary.
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Biocon’s growth in FY27 is expected to be fueled by new biosimilar launches and scale-up of recently launched products. The company focuses on improving capacity utilization, profitability and margins from heavy investments in its biopharmaceutical businesses.
Biocon’s biosimilars business accounted for 60% of its revenue in FY26 and recorded 16% revenue growth on a year-on-year basis. The company has achieved strong market share gains in the US for its plaque psoriasis biosimilar Yesintek and expects other products such as insulin aspart and bevacizumab to also support growth.
Biocon has integrated its biosimilar and generic drug businesses into a single biopharmaceutical business to increase scale, capability and reach. The focus now is on improving capacity utilization, expanding margins and supporting profitable growth with sustainable margins.
In April, Biocon launched Bosaya and Aukelso, two biosimilars of the bone-related disorders drug Denosumab, in the US. The company also received approval from Health Canada for two Denosumab biosimilars.
Biocon’s consolidated revenue stood at ₹16,927 crore in FY26; this figure stood at ₹15,261.7 crore in FY25. However, net profit fell from ₹1,429.4 crore to ₹368.8 crore in FY25, driven by factors such as loss in lenalidomide sales and exceptional products.
Tambe said recently launched biosimilars have begun to scale in markets and will gain momentum throughout the year, especially in the second half of FY27.
In April, Biocon launched Bosaya and Aukelso, Denosumab, two biosimilar drugs for bone-related disorders in the US. It has also received major approvals, including Health Canada’s approval of two Denosumab biosimilars.
Biocon competes in the US biosimilar market with giants such as Sandoz, Pfizer and Amgen.
Tambe also noted strong market share gains for plaque psoriasis biosimilar Yesintek, which has already captured nearly a fifth of the market in the United States. Other products expected to support growth include insulin aspart and cancer drug bevacizumab.
“You’ll see a lot of products that will increase sales and increase revenues. But the focus won’t just be on revenue growth or market share. The point is, you’ll see a lot of products that will increase sales and increase revenues.” [we] “We will have sustainable margins and profitable growth,” he said.
Biosimilars continue to be the biggest driver of growth, accounting for 60% of the company’s revenue.
Biocon’s consolidated income from operations in the fourth quarter was as follows: ₹4,516.6 crore as against ₹Its net profit fell 57% to Rs 4,417 crore in the same period last year. ₹198.6 crore. The company’s performance was hit by the loss of lenalidomide sales compared to the same period last year, as well as exceptional items.
Consolidated revenue from operations in FY26 was as follows: ₹16,927 crore in return ₹15,261.7 crore in FY25. Net profit fell ₹368.8 crore, downwards ₹1,429.4 crore in FY25.
Biocon’s biosimilars business recorded 16% year-on-year revenue growth in FY26, while EBITDA grew 40% on a like-for-like basis, driven by strong performance in developed markets, tender wins in emerging markets and improved product mix.
EBITDA margins in the biosimilars business were around 26% during the quarter; The company expects further expansion in the medium term as operating leverage improves.
Biocon expects savings of over 10% on interest cost ₹300 crore in FY27, which will directly strengthen the financial picture, following the buyout of minority shareholders in Biocon Biologics and refinancing initiatives to strengthen its balance sheet last year.
