Full Year 2020 Biocon Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : My first question is on the Biologics business. You mentioned that FY '21 should see a stable margin, stable EBITDA margin in Biologics. Could you give us some color on what could be the R&D spend? Could it be significantly higher, which will lead to this stable margin? And also just related to that question, how are you looking at pricing? What have you seen in pricing for Ogivri, given we've seen multiple players come through in the quarter? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 15, 2020 / 11:30AM, BION.NS - Full Year 2020 Biocon Ltd Earnings Call

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Siddharth, in that case, can I ask you what is the guidance for R&D for FY '21? Is it still 15% ex Syngene, 15% of sales ex Syngene?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Yes. So in which case, given we'll have 3 products contributing in FY '21, even with the higher R&D, a large part of our cost increase had come in through in FY '20. Shouldn't we be seeing some margin improvement in FY '21? What am I missing here?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Fair enough. My second question was on the fundraising in Biologics. After the first tranche, given the current COVID environment, a, do you see a delay in the subsequent round? And b, in case there is a delay, could this, for whatever reason, impact our ability to fund our growth plans for the next year in Biologics?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : No, no, ma'am. Fair enough. I was just wondering from a CapEx and R&D funding in case the fundraising -- subsequent rounds of fundraising is delayed.

Question: Aimee Truesdale - Jupiter Asset Management Limited - Analyst : This is Aimee Truesdale. First question is actually on China. Given the Mylan-Upjohn merger, when do you start expecting to see Biologic sales in China? And is that -- is any of that included in the $1 billion target?

Question: Aimee Truesdale - Jupiter Asset Management Limited - Analyst : Great. That's really great to hear. Any sense of time line on when -- is it a matter of months or is it kind of years?

Question: Aimee Truesdale - Jupiter Asset Management Limited - Analyst : Okay. Great. And just my second question is, you speak about expecting a recovery in the next few quarters. Just wondering what your base case is for COVID. When are you sort of building in for a vaccine or treatment to be available and -- you building in a second place? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 15, 2020 / 11:30AM, BION.NS - Full Year 2020 Biocon Ltd Earnings Call

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : Ma'am, will it be possible for you to give us a flavor of the geographical split between U.S. and the non-U. S. market for the Biologics business as it is now? And when you -- as it could be under the $1 billion FY '22, we're talking about $1 billion of revenues. Any sense on what kind of geographical data we're looking at in the business then?

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : Okay. That's helpful. And Siddharth, what could be consolidate net debt as of [year-end]?

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : Okay. And lastly, second, what proportion -- you mentioned about the Biologics business partly being shifted from Branded Formulations to Biologics from next year. On an aggregate annual level, what would be the amount of the business that we are shifting into Biologics now?

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : But that won't be all Biologics, right? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 15, 2020 / 11:30AM, BION.NS - Full Year 2020 Biocon Ltd Earnings Call

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : Okay. These are all will be reported under Biologics revenues going forward?

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Hello? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 15, 2020 / 11:30AM, BION.NS - Full Year 2020 Biocon Ltd Earnings Call

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Yes. Can you quantify the loss from Malaysia in FY '20?

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : INR 160 crores?

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Okay. Yes. My second question pertains to just like you quantified INR 103 crores as impacted by shipment delays, is there any -- what would be the number in the current quarter?

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : No. In the sense, this number is up to March. So...

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Yes.

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Okay. Okay. And my question is, what is the kind of growth we expect in small molecules going forward?