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Biocon's fourth quarter results seemed to disappoint the market; the company vigorously defended its strategy. Kiran Mazumdar-Shaw, chairman and managing director, shares her concerns and hopes in a conversation with Praveen Bose. Edited excerpts:
What is the growth you foresee for Biocon?
Biocon has set its sight on achieving $700 million revenue in 2015 and has also set a $1-billion revenue target for 2018. The market share will come in the form of biologicals, biosimilars and branded formulations catering to the emerging markets. Our insulin portfolio is shaping nicely and along with our strategic partnership with global players such as Mylan, we are pretty bullish on meeting the targets.
The market is looking forward to your research services arm, Syngene's listing. Do you think it is ripe now for a public offer?
Syngene International is now India's largest contract research organization and the second in Asia after the China-based WuXi AppTec in terms of retaining existing and bagging new businesses for FY2013. Presently, Syngene caters to 90 life sciences customers, including 16 of the top 20 global pharma companies. Syngene clocked revenue of Rs 557 crore, a 36 per cent growth year-on-year, for fiscal 2012-13. FY2013 was a milestone, with the research services revenue crossing $100 mn, reflecting traction from the investments made so far across multiple platforms.
Now, we feel, it is the right time to access the capital markets. However, we are not going to the market to just raise money but to unlock the value of Syngene. The research services arm has around eight per cent GE Capital equity stake that gave Syngene a post-money valuation of Rs 1,625 crore.
It also received a capital investment of $120 mn (Rs 650 crore) to embark on expansion in terms of major infrastructure and scientific personnel expansion.
What have been your concerns on the biotechnology industry?
One big worry for me, personally, is the government's views about IP (intellectual property) and it's views on clinical trials. We are also very worried about drug regulation in the country. The short-term view that the country is taking is a very big concern.
Though the Indian biotechnology industry is growing at a decent pace, there seem hindrances for many companies.
Most of the new players are not seriously invested. It's difficult to grow in the industry. We don't know today who are the serious players. Most of them find that the investment is too high and do not do well. Hence, they remain fringe players. But, we have an early mover advantage and we continue to build on it.
