Biocon - The ultimate biosimilars play!

(ashit) #248

Biocon discussed opportunities in Agri Biotech in tea, horticulture & medicinal plants with Assam government



(ashit) #250

Drug major Biocon and Mylan’s proposed biosimilar trastuzumab has been approved by Brazilian regulatory agency ANVISA, through their partner Libbs Farmaceutica (Libbs).



Glenmark Pharmaceutical launches the biosimilar of Adalimumab in India

What could be the impact of this on Glenmark and Biocon?

(eyesice) #252

This might be slightly off topic. I was just looking at the various other Indian Pharma companies who could potentially join the race for biosimilars in the next 3 - 5 years since most of the generic drug makers are trading at low valuations. I can see from Biocon’s presentation that Dr Reddy’s and Lupin are the closest competitors and many of their drugs are either in Phase 1 or Phase 3. How long does a drug take to move from Phase 1 to Phase 3 and then eventually for approval by FDA or EMA?

Disc : Invested in Biocon and learning.

(azardeen) #253

Celltrion’s market cap reaches $34.8 billion. Celltrion’s pipeline is somewhat similar to that of Biocon. So Biocon should command atleast 50% of this marketcap assuming 50% revenue sharing with Mylan.

Disc: Invested

(sharrmasks) #254

interesting article in FT about celltrion also mentions biocon in the similar fashion

(sharrmasks) #255

Realised after posting that link is seeking a subscription. I navigated to the webpage by searching celltrion on google and then clicking on the top story. This way the said story may be accessed even without subscription.

(Gary) #256

Cadilla already claims to have been the first to launch. I was quite surprised to read that in their investor presentation.

(azardeen) #257

Glemark is just marketing the same product developed by Cadila. I dont know why Cadila is licensing it to Glenmark while they themselves are selling. Also it seems Cadila’s biosimilars pipeline is targeting only India and emerging markets. So they can’t be considered a serious player in biosimilars.

(azardeen) #258
Biocon Announces Exclusive Global Collaboration with Sandoz on Next-Generation Biosimilars

(spachiap) #259

Coherus Biosciences (a US company) is facing patent lawsuit for their biosimilars. Though they have one or two approved biosimilars, can’t sell their product in US yet. This move by Biocon to partner with Sandoz (a Unit of Novartis), and earlier with Mylan were super good moves (Imagine if Biocon is in the same state as that of Coherus, the stock would have tanked facing lawsuits). Good sales strategy!

(sharrmasks) #260

It looks proactive management of Biocon is stratagising for the biosimilars which are to be launched after the current crop of molecules ( 5-6 molecules which are in advance stage of launch in US EU and ROW). This reinforces the continuity and will help the analysts in understanding/predicting cash flow.
All information available about Biocon is focussing on the present set of drugs and company is tightlipped about other drugs for obvious competetive reasons.
Leading members of this thread / Value pickr @rks00 @Advait_6270 @ayushmit @Anant @ananth may through some light on the possibilities. Celltrion is now a $35B company and tripled since the morgan stanlay report of Biocon (avaialble in this thread) and is now qouting at almost 100 p/e.
Can Biocon make similar move over next 10 years @rks00 ?

(Rohit) #261

Hi Sharma SKS, you’re right, it is heartening to see Kiran, Chandavarkar & team making the right moves, and diversifying their partnerships.

About the future possibilities of Biocon with respect to their undisclosed molecules, your guess is as good as mine. There is no data to go off of so that would merely be me speculating, wishfully in my case :grinning: I’m just glad that they are thinking ahead and are investing in their future pipeline today. That being said, I do think that competition would be a lot more intense for Biosimilars than it is today. They are among the first movers today, but a lot of Pharma companies are catching up (Including Indian ones) so even though there are more molecules in the pipeline for the future as far as Biocon is concerned, my guess is that the IRR on each of these would come down successively.

Biocon still has a long way to go though with its existing disclosed molecules, it merely got approval for only one so far, and that to in the US (none in EU) and no commercialization yet. In the short run, I am a lot more optimistic on the Pegfilgrastim commercialization schedule, an early approval could mean almost immediate commercialization & that would be significant not just in understanding the market acceptance of these products and price erosion, but more importantly it could give us a sneak peak into the nature of the partnership agreements Biocon has entered (with Mylan) or would get into going forward with Sandoz etc. That would help us in updating our revenue & product profitability forecasts.

About Celltrions mcap and whether Biocon can get there in 10 years, Biocon is currently at approx $6 Bn mcap, a $35 Bn market cap in lets say 10 years would mean a 20% CAGR in value from here on out. That’s definitely not impossible, but I am slightly more optimistic in terms of the timelines :slight_smile:

(sharrmasks) #262

Article provides some information and perspective about how biocon has moved up the value chain and importance of biocon"s selection by novartis who is already an accomplished players in biopharma/biosimilars. for the thrid wave of biosimilars.
Clearly biocon is quickly moving ahead of other indian players who have yet to figure out there speciality, complex, biosimilar stretagy.

(sharrmasks) #263


(spachiap) #264

Any opinion on Novartis India? Would they come into play in the scheme of things with the recent announcements?

(eyesice) #265

(Mithun Raj) #266

Biocon-Mylan glargine biosimilar approved by EMA.

Approval for vials only, not for pen (60% of market). Guess they will have to await the EMA reinspection outcome of Bangalore facility before the pens are approved. Better this than a complete rejection.:roll_eyes:

(spachiap) #267

Biocon reaping the rewards of the hard work started long back, when all the generics drug makers were racing past them. I am reminded of this quote by Jeff Bezos. The biosimilar R&D path is a long and painful one. Congratulate Biocon for the bold move to venture the tough road. (I believe a biosimilar research takes 5-8years of effort). Here is the Bezos Quote -

“When somebody … congratulates Amazon on a good quarter … I say thank you. But what I’m thinking to myself is … those quarterly results were actually pretty much fully baked about 3 years ago. Today I’m working on a quarter that is going to happen in 2020. Not next quarter. Next quarter for all practical purposes is done already and it has probably been done for a couple of years.”

Disc: Invested.