Biocon Q4 Result Review: Competition May Mire Down Potential Turnaround, Says ICICI Securities, Retains 'Sell'

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ICICI Securities Report

Biocon Ltd.’s Q4 FY25 performance was above our expectation, mainly driven by higher launch quantities of gRevlimid in US. Performance in the biosimilar and research services was in-line with expectation.

The company was able to double its market in Fulphila/Ogivri to 30%/26% in US in FY25, aiding as the primary growth drivers for the company.

Biocon now has four biosimilar assets, each having sales of ~$200 million. In the near term, the company has five launches lined up, which should boost growth; however, competition challenges persist.

Besides, the company has already supplied adequate quantities of gRevlimid in Q4 and its revenue run-rate may dip in quarters ahead. We cut our FY27E Ebitda by ~1% due to concerns over margins.

Retain Sell with a higher target price of Rs 270 (roll over to FY27E).

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