Biocon Q2 Results Review - Delay In New Approvals Drags Biosimilar Prospects: Motilal Oswal

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Biocon Ltd.'s Q2 FY24 financial performance missed our estimates. While the traction in the biologics business has been improving from commercialised products, the increased pricing pressure in generics and higher operating cost led gradual improvement in profitability. Research services exhibited healthy high-teen YoY growth in revenue for the quarter. We reduce our earnings estimate by 7%/2% to factor in-the challenges in the active pharma ingredient segment of generics business,slower off-take of b-adalimumab. We continue to value Biocon on an SoTP basis (15 times 12 months forward enterprise value/Ebitda for 70% stake in biosimilar business, 54% stake in Syngene and 10 times EV/Ebitda for generics business) to arrive at a price target of Rs 220. The biosimilar outlook is getting dulled due to the time required to resolve regulatory issues at Malaysia/Bengaluru site. Also, as highlighted in our note, the competition is building up faster in products under development (b-Denosumab/b-Ustekinumab). While there is healthy traction in the formulation segment, API is facing challenges in the generics segment. Syngene International Ltd. also reduced its outlook for H2 FY24. Considering these factors and valuation adequately capturing the earnings upside, we reiterate our 'Neutral' rating on the stock..Click on the attachment to read the full report:.Divi's Labs Q2 Results Review - Pricing Pressure In API Segment Hurts Profitability: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Biocon Q2 Results Review - Delay In New Approvals Drags Biosimilar Prospects: Motilal Oswal

Pricing pressure in API segment adds woes

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Biocon Q2 Results Review - Delay In New Approvals Drags Biosimilar Prospects: Motilal Oswal

Pricing pressure in API segment adds woes

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