Please let us know if you can find the EB purchase by KMS in her personal capacity , soon after the bribery case where their staff had bribed or was black mailed by the Drug admin dept. for clearing their files. More like black mail as they already had approvals from all global regulators
I am not very ambitious on returns. My buy price (after accounting for splits/bonuses…) is about Rs. 17. Does 20X in 15 years count for a return?
Biocon tries too many things, it appears to be aggressive at times and very defensive at times.
Aggressive: developing new drugs (though with partnerships, licensing…), trying to be an innovator
Defensive: When they enter service space (with assured margins) that affects their product business
Too active: Buys a business from its customer, sells something else…
Pretty complex to analyse. Only concern is “outsized influence of the promoter, who is past the prime, on the business”
If you read close;ly… there is a certain regularity which is getting into their business and they are more foussed on monetizing Bio similars … They also have API’s ( linked to their generics ) and some generics and small molecules. Gestation of their business is long. and can be cyclical . They also spend sizable amount on R & D and call it out. They claim to make 30 % margin ex R &D and once R & D pipeline generates sizeable revenue . Numbers will start showing up . They also are probably best CDMO player potentially with 100 % India presence … There are off and on events which impact the companys standing but really not so much to sleep over. There is also an optonality about Bicara which not many people know about.
To round it off about Madams larger than life image, she is what she is and nothing much you can do about it Suffice it to say that there is a capable team below at all levels …
Bicara raised Seris C funding, which resulted Biocon Stake dilution, so there was a loss of significant influence over control by Biocon as there will be other funding parties on the board.
But that fund raise resulted into gain for Biocon agaisnt their stake sale.