Attractive Prospects

Established in 1978, Biocon Ltd. has come a long way since the time it developed simple industrial enzymes. Today this biopharma major is at the forefront of developing what has been called the holy grail of the diabetes market — oral insulin. Oral administration does away with the need to inject insulin. If Biocon is successful, multiple daily injections for diabetics would become a thing of the past. Oral administration would revolutionise the insulin market not only in India but the world over and Biocon would find itself in a sweet spot. This scenario will come true only when the new drug passes stage III trials. In the meantime, the company is keeping the cash registers ringing with a variety of revenue streams that are getting stronger by the day. Biocon’s entry into biosimilars, increased licensing income, and a strong presence in domestic formulations space put the company on a strong footing even if it takes time to deliver oral insulin. Strengths and Opportunities Pfizer deal: Biocon recently entered into an agreement with Pfizer for the global commercialisation of biosimilar versions of insulin that Biocon manufactures, namely, recombinant human insulin, Glargine, Aspart and Lispro. This deal will see Biocon receive an upfront payment of $200 million (Rs900 crore) and milestone payments of up to $150 million (Rs678 crore) between FY11-FY13. A recent report from Motilal Oswal Securities pegs this deal as having an

This article was originally published on April 08, 2011.