Biocon Biologics’ (BBL) revenues for Q1 FY24 saw an over 100% year-on-year growth, driven by the consolidation of the biosimilars business acquired from Viatris, as well as higher sales of commercialized products that is reflected in their market share gains in U.S. & Europe. The robust performance this quarter has given Biocon Biologics the impetus to build on this momentum and accelerate growth in the rest of the current financial year.
Business integration on fast track
The acquisition, the largest outbound pharma deal from India, marks a historic milestone in our transformational journey, as it turns us into a fully integrated, leading global biosimilars player, with end-to-end capabilities in the development, manufacturing, and commercialization of affordable, high-quality biosimilars, thus strengthening our commitment to expanding affordable access to lifesaving biosimilars.
We acquired Viatris’ biosimilars business in November 2022, and we are happy to report that the first wave of integration of the acquired business has happened well ahead of plan. On July 1, 2023, which is less than seven months since the closure of the acquisition, we integrated over 70 countries in the Emerging Markets. More than 60 customers related to the acquired business have been integrated into Biocon Biologics’ Emerging Markets operations.
The success of the first wave gives us the confidence to complete the integration of the North America business by the end of Q2FY24, and integrate all remaining markets by the time the current fiscal draws to a close, thus completing full business integration well ahead of the plan charted out for the acquired business.
Advanced Markets like North America and Europe, among others, contribute about 75% of Biocon Biologics revenue, while the US is its single largest market.
Fortifying the leadership team
To prepare the organization for the future and ensure a seamless integration of the acquired business, Biocon Biologics has made several key leadership appointments recently.
We have appointed Rhonda Duffy as Chief Operating Officer of the Company. Rhonda, who brings over 30-years of experience in the global pharmaceuticals industry, will lead Manufacturing, Quality and Supply Chain Management.
David Gibson has joined the Company from GlaxoSmithKline (GSK) to lead all licensing, strategic partnering and business development activities as our Global Head – Business Development.
In addition to the above key leadership appointments, we have on-boarded global leadership talent across several functions including Manufacturing Science and Technology (MSAT), Clinical Development, Finance, HR, Legal and Compliance.
These are in addition to the leadership appointments we made in the previous financial year.
Stephanie Wasco had joined as Head of Communications – Advanced Markets to lead Corporate and Marketing Communications and Product Branding in Advanced Markets such as the US and Europe.
Stephen J. Fecho, Jr. was appointed Global Head of Supply Chain Management. Stephen is leading the end-to-end supply chain function, including the transition and integration of front-end supply chain capabilities.
We had appointed Stephen Manzano as General Counsel for Advanced Markets. He is leading Legal Compliance functions in the Advanced Markets as well as Global M&A and IP.
We had also onboarded key talent in our Advanced Markets for Market Access and Pricing, U.S. Policy and Advocacy, Human Resources, Finance and Clinical Development.
When we signed the deal to acquire Viatris’ biosimilars business we did not have existing sales infrastructure and local market expertise in most of these world markets. We believe that bringing in rich, global experience will help prepare the organization for the future and ensure a seamless integration of the acquired business. In doing so, it will allow us to enhance performance, reliability and sustainability while delivering on our commitment of bringing high-quality affordable biosimilars to millions of patients across the globe.
Building an organization of the future
A recent market review by McKinsey predicted that the global biosimilars market will quadruple by 2030, on the back of more than 200 billion dollars of originator biologics losing exclusivity. As a fully integrated, global company and with a comprehensive portfolio of 20 biosimilars, out of which eight are commercialized globally, we are perfectly positioned to seize this future opportunity.
The acquisition of Viatris’ biosimilars business has combined the complementary capabilities of two long-term partners. Driven by a common purpose and leveraging ‘The Power of One’, we aim to reduce healthcare inequities and transform healthcare, transform lives, worldwide. Our fully integrated business model, backed by a strong product portfolio, sets us up for long-term success.
FY24 is a pivotal year for Biocon Biologics as we further boost our growth with the complete integration of Viatris’ biosimilars business. The acquisition unlocks an opportunity for us to step up and be counted as a global leader in the biosimilars business. Our performance this quarter gives us the confidence that we are on the right path.
A Blog by Biocon 