Biocon Ltd., India’s leading biotechnology major foresees a sustained pace of growth for itself from ramping up investments in R&D over the next four to five years. As a result, it expects its revenues, currently at Rs.2050 crore, to nearly double to Rs.4,000 crore by 2018.
A small promising start in this direction was already made this fiscal. “The 57 per cent rise in R&D during this fiscal is helping us drive research programmes like insulin and the novel molecules,” said Kiran Mazumdar-Shaw, chairman and managing director, Biocon Limited.
Over the next five years, the biotechnology major has set sights on organic and inorganic growth. This will be driven by research services; small molecules covering active pharmaceutical ingredients; branded formulations and biosimilars. Now it seeks to capture some unprecedented prospects in the global markets.
The governments of US and Japan are looking at high quality, affordable biosimilars. There is a huge opportunity for the same in the emerging markets of MENA (Middle East- North Africa) and BRIC (Brazil, India, Russia and China) The entire South East Asian region too unfolds bright prospects for insulin and branded formulations, Therefore, Biocon reflects growth momentum in R&D. “We are literally investing in the future. R&D will be an integral part of our future focus. Right now all our research programmes are in key stages and if there is a concern on an increasing research spend, we view it as a positive indication,” she said.
There are several research programmes going into the clinical stage and the company needs to invest to deliver exponential growth in the future. As the company enter into the clinical research such expenditures would only increase, said Shaw.
On the progress of the pipeline drugs, she said, "We are in advanced stages of finalizing our co-development agreement for IN-105 (oral insulin), initiated engagement with potential partners for out licensing Itolizumab an anti CD6 monoclonal antibody for psoriasis in the global markets. With Itolizumab, we are seeking market authorization from DCGI. Clinical trials will be initiated for indications like multiple sclerosis, Vitiligo and rheumatoid.”
“We have already identified strategic growth areas. It will be the active pharmaceutical ingredients (APIs) covering the statins and immunosuppresants, biosimilars, insulin and monoclonal antibodies which help us to accelerate the revenue generation. For instance, the small molecules led by the immunosuppressants can definitely do well in Latim America and US. APIs like fidaxomicin, orlistat and tacrolimus along with biosimilars and insulin are showing extremely encouraging sales. We are working to be ready for product registrations in Europe in 2014-15 with insulin,” she said.
Among the branded formulations, under the diabetic category: Insugen, Basalog, oncology segment: Abraxane and BioMab EGFR, immunosuppressant basket: Psorid and Picon, is a reflection of a strong portfolio and the comany will remain committed to offering differentiated products that provide best in class, affordable treatment to patients.
While the company has chalked out many partnerships at every stage of its research and entered into long-term supply agreements for commercial manufacturing and co-marketing, it has also exited tie-ups with AxiCorp, Pfizer and Amylin Pharmaceuticals. “These are part of a continuous research evolution," explained Shaw.