Biocon share price target 2022, 2023, 2024, 2025, and 2030: Biocon is a global biopharmaceutical company changing patients’ lives in over 120 countries by finding new and affordable ways to treat diabetes, cancer, and autoimmune diseases.
Biocon Share Price Target 2022, 2023, 2024, 2025, and 2030: Overview of Biocon
Biocon was established by Dr. Kiran Mazumdar Shaw in 1978. The company had come out with an IPO in 2004. Unlike most pharma companies that are chemical-based, Biocon has carved out its niche in the more complex biotechnology field.
Over the decades, Biocon has successfully evolved into an emerging global biopharma enterprise, serving its partners and customers in 75+ countries. As a fully integrated biopharma company, it delivers innovative biopharmaceutical solutions, ranging from discovery to development & commercialization.
The company has initiated filings and launches of biosimilars in the US, EU, Australia, Canada, Japan besides some developing markets.
It has entered into a partnership with Mylan for six biosimilar programs (Trastuzumab, Pegfilgrastim, Adalimumab, Bevacizumab, Etanercept, and Filgrastim) and three insulin analogue programmes (Glargine, Lispro, and Aspart). In the biopharma segment, the company has a presence in India, regulated and semi-regulated markets.
In the domestic formulations market, it is a biologics-focused specialty products company, mainly in chronic therapy areas like anti-diabetic, antineoplastics, blood-related, and dermatology. The company derived 22% of its revenues from the domestic market while 78% from International markets and key being the US and Europe. Biocon is a leading supplier of complex, small molecule APIs across cardiac, anti-obesity, and immune-suppressants therapeutic areas.
It has signed a voluntary license agreement with Gilead to manufacture and supply Remdesivir in India and 127 other countries and indigenously developed ELISA testing kit, has been outsourced to a partner for manufacturing and distribution across the country. The company has a target to reach US$ 1bn revenues from the Biologics segment in FY22.
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Strengths of Biocon
- Robust infrastructure and a talent pool with extensive global product development experience.
- Capabilities and expertise in an array of expression platforms that include microbial and mammalian systems.
- 400 member strong scientific team, including MDs, phDs and masters degree holders, drawn from within India and global biopharma organisations.
- Products approved by key regulatory agencies from US, EU, Japan, Brazil, Mexico, Turkey and Gulf countries.
- Global scale, complex biologics manufacturing capabilities.
- Wide presence with marketing footprint across 120 countries.
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Corporate Overview of Biocon
Biocon Share Price Target 2022, 2023, 2024, 2025, and 2030
Biocon global businesses – Generics, biosimilars, research services, and novel biologics research, develop and manufacture innovative biopharmaceutical medicines for unmet medical needs and branded formulations cater to the Indian market. Biocon truly believes drug innovation and therapy cost must interact effectively in a new financial matrix. Biocon’s business strategy of delivering affordable innovation is well aligned with this emerging paradigm.
Biocon’s fully integrated business model spans the entire drug value chain, from preclinical discovery to clinical development and through to commercialization.
Business Segments
- Generics.
- Biosimilars.
- Research Services.
- Novel Biologics.
Biocon Partners
- Viatris.
- Sandoz.
- Serum Institute Life Sciences.
- Adagio.
- Voluntis.
Geographic Wise Revenue
Segment-Wise Revenue
Biocon Share Price Target 2022 by ShareKhan: Target Price Rs.470
ShareKhan has a buy call on Biocon with a target price of Rs.470. The time period given by the brokerage when Biocon can reach the given target is one year.
ShareKhan Report on Biocon Share Price Target 2022
Q1FY22 was a weak quarter and results missed estimates. Performance was impacted due to 2nd wave of covid in India. The growth outlook across all the businesses is strong with the Biologics segment expected to be the key growth driver.
The growth outlook across all the businesses is strong with the biologics segment expected to be the key growth driver. In the near term interchangeability status for approval bAspart, if received could be the key trigger. After a weak performance in Q1FY22, management has shared a promising growth outlook which augurs well from a growth perspective.
Overview of Q1FY22 results of Biocon
Q1FY22 was a weak quarter for Biocon and the results missed ours as well as the street’s estimates. Lower than the estimated performance of the generic segment, due to the impact of the second wave of COVID, which led to disruptions of operations at both Bangalore and Hyderabad plants. This coupled with pricing pressure in the US formulations segment adversely impacted the performance.
The topline growth was muted at 4% YoY to Rs 1761 Cr backed by a 10% and 41% YoY growth in the biosimilars and research services segment, while the generic segment revenues declined by 21.7% YoY. The operating margins at 22.1% declined by 229 bps YoY due to a 210 bps contraction in gross margins. Consequently, the adjusted PAT for the quarter at Rs 84 Cr declined 43% YoY and missed estimates.
Biocon sees a strong growth outlook across its business – biologics, generics, and research services. Strengthening the insulin and oncology franchise backed by new product approvals expected, geographic expansion, and higher market penetrations would drive the growth for the biosimilars business. Also, the company is working towards identifying the next set of businesses that could propel the growth for the company in the coming years. The generic business is also well placed to grow backed by expected commissioning of new facilities at Vizag, new product pipeline, and focus on non-US markets.
After a blip in the performance for the Q1FY22, the generic segment operations are expected to normalize in the coming quarters, backed by new client wins and expected traction, the research services performance is expected to grow. Overall after a weak quarter, the management has shared a promising growth outlook for the rest of the year and this augurs well from a growth perspective.
Key positives for Biocon
- The biologics segment revenue staged a growth of 10% YoY in challenging times.
- Entered 7 new markets with the biosimilars.
ShareKhan Outlook on Biocon share Price Target 2022
Biocon has laid a strong platform for the growth of the biosimilars in the insulin and oncology franchise across its key markets. Expected approval for interchangeability status of semglee and launch of insulin aspart would strengthen the insulin franchise further while the launch of bBevacizumab in the US would fortify the presence in the oncology space. This coupled with the efforts to increase penetration in existing markets and tap new markets would drive the growth of biosimilars. Further, the performance of the generic segment is expected to normalize in the coming quarters after a weak show in Q1FY22 hit by the 2nd wave of the pandemic in India. Given the strong growth outlook ShareKhan retain a buy on the stock with a price target of Rs.470.
Biocon Share Price Target 2022 by ICICI Direct: Target Price Rs.400
ICICI Direct has a buy call on Biocon with a target price of Rs 400. The time period given by the broker when Biocon can reach the given target is one year.
ICICI Direct Report on Biocon Share Price Target 2022
Biocon is a leading biopharma company operating in biologics, small molecules, branded formulations, and contract research.
Revenue breakup: Biosimilars – 37%, generics – 31%, research services – 29%.
Key triggers for future price-performance:
- Interchnageability approval of insulin glargine.
- Marketing authorization for bBevacizumab in Australia and UK.
- Approval of bBevacizumab andninsulin aspart in the US.
- Ramp up of market shares in existing biosimilars, geographical expansion.
- Syngene mangalore customer validations and approvals.
Biocon Share Price Target 2022 by HDFC Securities: Target price Rs.452
HFDC Securities has a buy call on Biocon with a target price of Rs 452. The time period given by the brokerage when Biocon can reach the given share price target is one year.
HDFC Securities Report on Biocon Share Price Target 2022
Biocon has a strong presence in the biopharma sector with diversified revenue streams across small molecules, active pharmaceutical ingredients, biologics, and research services. The domestic business mainly focuses on chronic areas such as anti-diabetes, oncology, nephrology, immunotherapy.
Biocon has a presence in the research services segment through its listed entity Syngene international in which Biocon holds a 70.2% stake as of Jun-2020. Biocon is also one of the leading players in insulin in Asia, with its global capacities making it one of the leading insulin producers globally.
Biocon’s long-term growth potential is expected to be led by its biosimilar and novel biologics segments, in both semi-regulated and regulated markets. While these emerging segments continue to require a large investment for R&D and Capex, the company is supported by steady cash flow from its established small molecules and branded formulations segments. Very few players in India have been able to scale up their biologics revenues, and Biocon is one of them. Biologics revenues have registered robust 39% CAGR led by new launches over FY16-20.
HDFC Securities Outlook on Biocon Share Price Target 2022
Biocon has a strong pipeline of biosimilars to be launched over the next 3-5 years across various markets. Given its record, the biosimilar products have good potential to garner market share despite the competition. Over FY20-22E, we forecast a 22% revenue CAGR, led by 45% growth from Biologics and 9% in generic formulations and small molecules, with 470bps margin improvement. Healthy revenues coupled with strong margin improvement would drive robust 43% PAT CAGR over the same period.
Being the leading player in the India-listed space, and tie-ups for international business for biosimilars, HDFC securities expects the company to deliver strong growth across its segments. New customer additions and an increased number of projects from existing customers would drive the research services segment. Also, Biocon is in the process of building a product pipeline in the generics segment. Biocon has traded at around 20-30x 1-year forward PE over the past 8-10 years. Given string outlook in the next 2-3 years from biologics and research multiple has got re-rated significantly over the last 6 months.
Revenues Mix
Strong Return Ratios (%)
Income Statement
(Rs Cr) | FY18 | FY19 | FY20 | FY21E | FY22E |
|---|---|---|---|---|---|
| Total Revenues | 4123 | 5514 | 6367 | 7564 | 9478 |
| Growth (%) | 6 | 33.7 | 15.5 | 18.8 | 25.3 |
| Operating Expenses | 3294 | 4121 | 4764 | 5483 | 6646 |
| EBITDA | 829 | 1393 | 1603 | 2081 | 2832 |
| Growth (%) | -15.3 | 68 | 15.1 | 29.8 | 26.1 |
| EBITDA Margin (%) | 20.1 | 25.3 | 25.2 | 27.5 | 29.9 |
| Depreciation | 385 | 448 | 552 | 659 | 741 |
| EBIT | 444 | 945 | 1051 | 1423 | 2091 |
| Other Income | 206 | 144 | 161 | 169 | 194 |
| Interest Expenses | 62 | 71 | 65 | 58 | 53 |
| PBT | 610 | 1215 | 1186 | 1536 | 2234 |
| Tax | 157 | 212 | 315 | 384 | 558 |
| Growth (%) | -39.2 | 143.2 | -17.3 | 38.8 | 47 |
| EPS | 3.1 | 7.5 | 6.2 | 8.7 | 12.7 |
Biocon Share Price Target 2023
If you want to hold a little longer then Biocon share price target for 2023 is 480 Rupees. We would suggest you to hold Biocon for the long term. Because the stock is very strong in terms of fundamentals, financials, and management.
Biocon has strong and diversified revenue streams, the company drives revenues from across multiple streams such as biologics, contract research, small molecules, generic formulations, and APIs and branded formulations. The company also signed a voluntary license agreement with Gilead to manufacture and supply Remdesivir in India and 127 other countries and indigenously developed ELISA testing kit, has been outsourced to a partner for manufacturing and distribution across the country.
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Biocon Share Price Target 2024
If you want to hold a little longer then Biocon share price target for 2024 is 544 Rupees. Biocon’s long-term growth potential is expected to be led by its biosimilar and novel biologics segments, in both semi-regulated and regulated markets. Biologics business recorded strong 29% YoY growth in FY20 and a 41% YoY rise during Q1FY21.
The biosimilar segment sales stood at Rs. 758 Cr for the quarter, which is a growth of 10% YoY and 14% sequentially. During Q1FY22, the company expanded its footprint by entering 7 new markets, while it also received approval from TGA Australia for bBevacizumab. Also the strong growth of COVID- led the portfolio in India – Remndesivir and Itolizumab added to the topline growth of the biosimilars business. bTrastuzumab reported a strong uptake in the other emerging markets such as Brazil and retained a leadership position with a 39% market share, which is commendable. The other biosimilars – bTrastuzumab, bPegfilgrastim, and bGlargine saw healthy growth in the US markets with a steady increase in the market share.
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Biocon Share Price Target 2025
If you want to hold Biocon for 4 to 5 years then the Biocon share price target for 2025 is 625 Rupees. Indian pharmaceutical companies are better placed to harness opportunities and report healthy growth going ahead. They are among the most competitive globally and hold a sizeable market share in most developed as well as other markets.
Moreover, other factors such as easing of pricing pressures (especially in the US generics market), rise in product approvals, plant resolutions by the USFDA, strong growth prospects in domestic markets, and emerging opportunities in the API space would be key growth drivers.
This would be complemented by strong capabilities developed by Indian companies (leading to a shift towards complex molecules and biosimilars) and the commissioning of expanded capacities by select players over the medium term. Collectively, this indicates a strong growth potential going ahead for Indian pharmaceutical companies
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Biocon Share Price Target 2030
If you want to hold Biocon for 10 years or even more, it can give you multi-bagger returns. Biocon is a leading company manufacturing biosimilars in India and one of the few global companies to receive approvals for its products across the regulated markets of – US, EU, Japan, and other developed markets.
The company is expected to benefit substantially from the opportunities in the lucrative biosimilars space. A robust opportunity lies ahead in the biosimilars segment for Biocon, as some key global brands would lose patent exclusivity in the medium to long term. Price erosion in biosimilars is much lower than that in the other segments as of now and this works to the company’s advantage.
Scientific expertise in developing and manufacturing complex biosimilars together with the commercialization strength of partner companies would further strengthen Biocon’s presence globally in the biosimilars. Moreover, with the possible listing of Biocon Biologics, there exists a significant value unlocking opportunity going ahead. Though given the headwinds, the growth momentum in the near term could slow down, but growth levers over the long term stay intact.
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Biocon Share Price Target 2022, 2023, 2024, 2025, and 2030
| Year | Target |
|---|---|
| Target for 2022 | Rs 400, 452, 470 |
| Target for 2023 | Rs 480 |
| Target for 2024 | Rs 544 |
| Target for 2025 | 625 |
| Target for 2030 | For multibagger returns |
Download Biocon Annual Report PDFs
To know more about the company you can download the latest annual reports and go through those reports so that you can have a good idea and confidence about the company, its business, and its growth potential.
You can download the annual report PDF by the link which is given below. If you are investing in Biocon for the long term, we highly recommend you to go through the PDF, so that you can understand more about the company.
Conclusion
In this article, we have provided the fundamentals, overview, and business verticals of the Biocob along with the Biocon share price target 2022, 2023, 2024, 2025, and 2030. Biocon may or may not reach the target price we have given, but one thing is clear, Biocon is fundamentally, financially very strong. One can hold it for the long term, there are a lot of growth opportunities for Biocon and for the pharmaceutical industry.
Frequenlty asked questions
What is the future of Biocon Share?
Biocon has a strong pipeline of biosimilars to be launched over the next 3-5 years across various markets. Given its record, the biosimilar products have good potential to garner market share despite the competition. Over FY20-22E, we forecast a 22% revenue CAGR, led by 45% growth from Biologics and 9% in generic formulations and small molecules, with 470bps margin improvement. Healthy revenues coupled with strong margin improvement would drive robust 43% PAT CAGR over the same period. Being the leading player in the India-listed space, and tie-ups for international business for biosimilars.
Is Biocon good for long term investment?
Yes, Biocon is a good share for long-term investment. One can hold Biocon for long-term investment. Biocon is strong in terms of financials, fundamentals and the management is also strong. Management has laid out an aspirational US$ 1bn revenue target for the biologics segment by FY22. However, as a matter of prudence, HDFC Securities expect revenues from Biologics to be ~US$ 550mn in FY22 vs. US$ 250mn in FY20.
Is Biocon debt free?
No, Biocon is not a debt-free company. The debt of the company is 0.70 Cr, but the debt is negligible. The debt to equity of the company is 0.0.
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