Biocon Biologics CEO: GLP-1 Pipeline Fuels Growth

Biocon Biologics Managing Director & CEO Shreehas Tambe has revealed an optimistic growth strategy centered on new product approvals and expansion into profitable markets. The company has successfully reduced its debt-to-EBITDA ratio from elevated post-acquisition levels, with plans to decrease leverage further, aiming to approach 1x.

The company anticipates meaningful scale-up in fiscal 2027, driven by multiple regulatory approvals secured recently. Biocon Biologics is prioritizing high-value markets and preparing for upcoming launches, notably in the GLP-1 drug segment, which aids diabetes management and weight loss.

Liraglutide has already demonstrated success in Europe and emerging markets, with US approvals expected soon. Semaglutide is also in development for various regions, potentially through partnerships in India to broaden access. The company reported revenues of ₹4,173 crore for the October-December quarter (Q3FY26), with a net profit of ₹143.8 crore and 20% margins.

During Q3FY26, Biocon Biologics achieved an EBITDA margin of 28%, a significant increase driven by a focus on high-margin markets in anticipation of new launches. For the full fiscal year, margins are expected to be in the mid-20s. The CEO views the biologics segment as presenting more opportunity than pressure.

Liraglutide, a key GLP-1 launch, has shown good demand in Europe, particularly Germany, and has contributed to business growth in several emerging markets. The company expects Semaglutide to also drive generic space growth from fiscal 2027 onwards. While Semaglutide is under development, Biocon Biologics plans to partner for its launch in India to ensure wider patient reach.

Regarding its debt, Biocon Biologics has reduced its debt-to-EBITDA ratio to 2.5x from over 4.2x post-acquisition. The company is comfortable with this trend and has guided that the ratio will fall below two and closer to one, a highly desirable financial position.