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Biocon Biologics Outlook Boosted by Parent's Stronger Finances
7 Feb
Summary
- Fitch Ratings revised Biocon Biologics' outlook to Positive from Stable.
- Parent company Biocon Limited's improving financial metrics drive the upgrade.
- Biocon Biologics holds significant market share in US and European biosimilars.
Fitch Ratings has elevated Biocon Biologics Limited's (BBL) outlook to Positive from Stable, affirming its Long-Term Foreign-Currency Issuer Default Rating at 'BB-'. This revision is primarily driven by the strengthening financial metrics of its parent, Biocon Limited (BL).
The Positive Outlook signifies Fitch's anticipation of a sustained decrease in BL's financial leverage. This is expected following the repayment of liabilities using proceeds from a significant equity issuance completed in January 2026. Fitch forecasts BL's EBITDA net leverage to fall below 4.0 times in FY26, aiming for below 3.0 times.
BBL possesses a competitive standing in the global biosimilars arena, bolstered by robust R&D and in-house manufacturing. The company holds substantial market shares in the US for key products like trastuzumab and insulin glargine, and ranks among top sellers in Europe.
