{"id":615,"date":"2020-01-10T11:17:52","date_gmt":"2020-01-10T11:17:52","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=615"},"modified":"2020-01-10T11:17:56","modified_gmt":"2020-01-10T11:17:56","slug":"biocon-optimistic-about-hitting-1-billion-in-revenue-by-fy22-on-back-of-new-launches-kiran-mazumdar-shaw-chairperson-and-managing-director-biocon","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2020\/01\/10\/biocon-optimistic-about-hitting-1-billion-in-revenue-by-fy22-on-back-of-new-launches-kiran-mazumdar-shaw-chairperson-and-managing-director-biocon\/","title":{"rendered":"\u2018Biocon optimistic about hitting $1 billion in revenue by FY22 on back of new launches\u2019 &#8211; Kiran Mazumdar Shaw, Chairperson and Managing Director, Biocon"},"content":{"rendered":"\n<p><strong>Update&nbsp;on the Indian Equity Market:<\/strong><\/p>\n\n\n\n<p>On Wednesday, NIFTY closed at 12,025 (-0.2%). Among the stocks, Bharti Airtel (+3.1%), Yes Bank (+2.2%) and TCS (+2.15%) were the gainers. Eicher Motors (-4.3%), Coal India (-2.5%), and LT (-2.2%) were the top losing stocks. IT (+0.4%) and FMCG (+0.1%) were the sectoral gainers. All the sectors ended in the red.<\/p>\n\n\n\n<p><strong>\u2018Biocon optimistic about hitting $1\nbillion in revenue by FY22 on back of new launches\u2019 &#8211;<\/strong> <strong>Kiran\nMazumdar Shaw, Chairperson and Managing Director, Biocon<\/strong><\/p>\n\n\n\n<p>Excerpts from an interview with Kiran Mazumdar Shaw,\nChairperson and Managing Director- Biocon published in Livemint on 08<sup>th<\/sup>\nJanuary 2020:<\/p>\n\n\n\n<ul><li>They would get a benchmark valuation through some\nprivate equity investment before they take it to the market for an initial\npublic offering (IPO) and according to her this is the first step where True\nNorth has invested in Biocon\u2019s Biologics and they set a base level benchmark\nvaluation.<\/li><li>They might raise little more private equity prior\nto the IPO. This gives them an idea of where they believe they can unlock the\nvalue in terms of Biocon Biologics in the next few years.<\/li><li>They have been in discussion with several private\nequity forums and of course True North has been first of the block and they\nwill be socializing and entertaining other investment opportunities from other\nprivate equity firms.<\/li><li>In 2020, hopefully they will see private equity\nfunding complete before they go for an IPO. The plan is obviously to invite\nprivate equity and use it for many of their current funding needs.<\/li><li>They have set up a very expensive biologics\nfacility. So private equity funding will actually come in very handy instead of\nraising extra loans, debt finance. <\/li><li>They plan to extend the private equity funding to\n$200-300 million or more levels and True North is expected to take up\nadditional stake along with others.<\/li><li>The opportunities are very well marked out, and she\nfeels optimistic about hitting the target of $1 billion of revenue in biologics\nby FY22.<\/li><li>They are now in the US market with both Trastuzumab\nand Pegfilgrastim. Both have had pretty strong entries.<\/li><li>They have also got Glargine and Bevacizumab that\nwill make an entry into the market by FY22 and we also expect insulin Aspart to\nbe in the US market by that time.<\/li><li>There are many launches that are planned by FY22\nand she believes that they have worked out a fairly conservative kind of\nmetrics to get them to that FY22 billion dollar target. So that is why they\nremain quite confident that they will be able to hit that target.<\/li><li>She believes that they have a very robust pipeline;\nthey have 28 molecules, either in the market or under development. They have\njust commissioned first expansion of their very large biologics facility in Bengaluru.<\/li><li>Biocon has to be viewed as a balanced portfolio\nwith small molecules, biologics and research services and those who want a pure\nplay investment opportunity in either biologics or research services can opt\nfor either Syngene or Biocon Biologics. She thinks they have made it into an\ninteresting investment opportunity by structuring it this way.<\/li><li>Biocon will continue to be a very strong performer\nconsidering the fact that it intends to have majority stake in both Syngene and\nBiologics.<\/li><li>As capex needs of biologics business are very high\nboth in terms of manufacturing capacity as well as R&amp;D investment, they\nwill use the funding across the board.<\/li><\/ul>\n\n\n\n<p>Consensus\nEstimate: (Source: market screener website)<\/p>\n\n\n\n<ul><li>The closing\nprice of Biocon Ltd was&nbsp;\u20b9 282\/- as on 08<sup>th<\/sup> January-20. It\ntraded at 37x\/ 28x\/ 21x the consensus earnings estimate of&nbsp;\u20b9&nbsp;7.5\/\n10.1\/ 13.2 for FY20E\/ FY21E\/ FY22E respectively.<\/li><li>Consensus\ntarget price is \u20b9 294\/- which implies a PE multiple of 22x on FY22E EPS of \u20b9 13.2\/-<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update&nbsp;on the Indian Equity Market: On Wednesday, NIFTY closed at 12,025 (-0.2%). Among the stocks, Bharti Airtel (+3.1%), Yes Bank (+2.2%) and TCS (+2.15%) were the gainers. Eicher Motors (-4.3%), Coal India (-2.5%), and LT (-2.2%) were the top losing stocks. IT (+0.4%) and FMCG (+0.1%) were the sectoral gainers. All the sectors ended in [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[247,85],"tags":[250,252,251,249],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/615"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=615"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/615\/revisions"}],"predecessor-version":[{"id":616,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/615\/revisions\/616"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}