Half Year 2026 Biocon Ltd Earnings Call Transcript

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

Question: Tushar Manudhane - Motilal Oswal Securities Ltd - Analyst : This is Tushar Manudhane from Motilal Oswal. Sir, firstly, on the insulin aspart now that we have launched the product. So if you could just sort of help us understand the kind of traction that can be expected from this product, given that we are the only interchangeable player in this space. That's my first question.

Question: Tushar Manudhane - Motilal Oswal Securities Ltd - Analyst : So effectively, let's say, second half FY26, still to sort of do the processing aspect and then to look at the commercial traction. Is that the way to think about it? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2025 / 3:30AM, BION.NS - Half Year 2026 Biocon Ltd Earnings Call

Question: Tushar Manudhane - Motilal Oswal Securities Ltd - Analyst : Understood, sir. That's helpful. Secondly, just on the R&D spend for the biosimilars business, we've seen scale up in terms of, as a percentage of biosimilars revenue, if you want to sort of guide for, let's say, full year '26, '27 in terms of the R&D spend on the biosimilar side, either on an absolute basis or as a percentage of revenue?

Question: Tushar Manudhane - Motilal Oswal Securities Ltd - Analyst : Got it. And just lastly, if I may, on the gross margins on the generics business, what kind of gross margin we are tracking. And similarly, what kind of R&D spend one should sort of build for the generics business?

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : This is Harith from Spark Avendus. Hope I'm audible.

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : So my first question is on the recent revised or updated guidance document from the FDA on lowering requirements around comparative efficacy trials. And do we expect this to be a positive for us in terms of the R&D spend that we do on developing each biosimilar product.

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : And would you expect some of the newer players to accelerate their development and hence, more competitive intensity in the space?

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : Got it. My second question is on the generics business. I see a fairly decent loss reduction versus the last quarter at the EBITDA level. So trying to understand what exactly drove this group performance? Is it the newer launches like liraglutide and dasatinib or is it the ramp-up that we've seen at some of these newer capacities at sites like Cranbury, the new peptide facility. So you can give some color that you'll be helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2025 / 3:30AM, BION.NS - Half Year 2026 Biocon Ltd Earnings Call

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : Got it. And last one, with your permission, on the interest costs. It's just in the consolidated P&L, it's broadly in line with what we saw in 1Q. And you had commented that there would be a reduction in line with the repayment of the Goldman Sachs debt. So when can we see a reduction

Question: Siddharth Nigandi - CWC - Analyst : This is Siddharth Nigandi from CWC. Firstly, congratulations on a very strong set of numbers and an improved balance sheet. I had two questions. First, there have been certain formularies that have excluded as part as a class. And in certain cases where Novolog is at a superior tier to KIRSTY. How do we look at sales for KIRSTY and for aspart in that case going forward? That was question number one. Question number two was given the upcoming patent clips and specifically on KEYTRUDA, which is really the largest one. There is no record of any clinical trials ongoing for Biocon. So is that going on to a partnership? How should we think of your participation in biosimilar KEYTRUDA? That was question number two. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2025 / 3:30AM, BION.NS - Half Year 2026 Biocon Ltd Earnings Call

Question: Siddharth Nigandi - CWC - Analyst : Sure. Matt, just wanted to understand given that it is the top two formularies, OptumRx, premium formulary and the Express Scripts, which have, in one case, excluded aspart as a class itself, does that, in any way, inhibit or limit the TAM for aspart?

Question: Love Sharma - - Analyst : I just wanted to just reconfirm what would be the current outstanding structured debt on the books as of September quarter.

Question: Love Sharma - - Analyst : Okay. Great. And in terms of the CP issuances, could you highlight how much has been the amount been issued so far?

Question: Abdulkader Puranwala - ICICI Securities Ltd - Analyst : This is Abdul Puranwala from ICICI Securities. So just a couple of questions as a follow-up on the draft guidance. So sir, what is your reading in terms of the market share improvement to what biosimilars can see post these norms on the interchangeable status kind of fading away or the study is no longer required. And a second one on that front, when we talk about rise in market share being inversely proportionate with the selling price. Going ahead, what is the kind of erosion now you see in this particular arena as the competition intensity kind of picks up?

Question: Abdulkader Puranwala - ICICI Securities Ltd - Analyst : Got it. And just one final one, if I may. So with this net debt reduction now, are we kind of laying out a road map for where we see the overall debt levels or net debt levels in the next couple of years?