Biocon Biologics’ FY24 revenue guidance will be a three-fold jump compared to its revenues of ₹3,464 crore in FY22.
The company said the acquisition of Viatris’ biosimilars business alone will contribute $1.1 billion to the revenues; $300 million will come from vaccine sales through SII alliance and $400 million from sales of biosimilars in domestic and emerging markets.
In an interview to ET, Biocon Biologics’ deputy CEO Shreehas Tambe said the $1.8 billion target is not overtly ambitious, and the company is confident of achieving it. Tambe added that he expects to see value accretion from the Viatris deal and SII alliance flowing from the second half of FY23.
He indicated that the Viatris deal is expected to close in the first half of FY23. “We have secured all of the debt; on equity infusion (of $800 million) we have already tied up $300 million, and $500 million has to come from Biocon Biologics, existing and new shareholders. We are comfortable with funding (the acquisition),” Tambe said, adding that the company is working on getting all the statutory approvals and “the good thing is we are progressing well, and we expect to close as we guided before”.
Biocon Biologics in March entered into a definitive agreement to acquire Viatris’ biosimilars assets for $3.34 billion. It will pay Viatris $2 billion in cash at the closing of the deal, and another $335 million in 2024. Out of $2 billion, $800 million will come through equity infusion from existing investors including parent Biocon and others such as Serum Institute of India, Abu Dhabi-based ADQ, True North, Tata Capital Growth Fund and Goldman Sachs.
Serum Alliance
On the progress of the alliance with SII for vaccines and biologics, Tambe said vaccine sales are expected to begin from the second half. “In the second half of the year, we will see value accretion both to the topline and the commensurate addition in the mid-30s to our Ebitda contribution,” he said.
Biocon Biologics is pinning hopes on the Covid jab Covavax that SII is manufacturing and commercialising with a license from US biotech Novavax.
“It (SII) is the only facility that has been approved for emergency use authorisation in the EU, and clearly it is amongst the frontrunners for approval by the USFDA. It puts SII in a unique position to tap into those markets, and given that Biocon Biologics has the same rights, it actually puts us in a unique position,” Tambe said.
