Biocon will now increase its emerging markets focus going by the opportunities for growth. The company has been generating significant sales from the MENA (Middle East and North Africa ) region.
“We intend to shift our marketing emphasis from the MENA region primarily because of the geo-political challenges in terms of credit risk for our bio-pharma business. While these markets continue to indicate robust demand, there are apprehensions on disruption of cash flow. Therefore as a strategy, we are looking to augment our presence in the Latin America and South East Asian region besides Eastern Europe”, said Kiran Mazumdar-Shaw, chairman and managing director Biocon at a con-call during the Q2 results here today.
“While we are already present in Eastern Europe, there is a gestation period for regulatory clearances and we are expected to receive the clearances for the same soon. In fact, there are many more regulatory approvals coming forth for us and we seen good growth prospects. Although there is a concern about the Ukraine region, yet other parts of Eastern Europe are looking to import bio-pharmaceuticals,” she added.
The markets of Latin America and South East Asia are seen to be the future for bio-pharmaceuticals. In Malaysia, its insulin facility remains on track to be commissioned in H2 FY15. The commercialisation of products from Malaysia will commence post validation and regulatory approvals from respective countries which will take 12-24 months, she said.
The company has presence in 85 countries globally and is keen to reduce therapy costs of chronic diseases like autoimmune, diabetes, and cancer in the emerging markets.
In its efforts to ramp up its presence in the Emerging Markets, it also working to offset its capacity constraints by embarking on Greenfield and Brownfield projects. While it is setting up a contract manufacturing facility for Syngene, Biocon will also look at incremental Brownfield expansions for its branded formulations.