Biocon Ltd Q1 2021 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 revenue. I just wanted to understand your commentary that market share for Ogivri and pegfilgrastim is improving versus, let's say, earlier this year. However, you also mentioned that the profit share is lower this quarter. Could you give us some color as to why the profit share, even if I look at performance and the lag is not reflecting the underlying Biologics momentum, let's say, in developed markets or in MoW?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Chinni, if that is the case, then if I look at -- if I were to look at your EBIT margin at 15% versus, let's say, even if I were to ignore the first quarter, my margins for the second and third quarter last year was about 25%. I understand that the cost for biologics has increased. But has the cost increased to that extent despite the higher share from Ogivri in U.S. and higher share in peg, our EBIT margins are not reflecting it?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Okay. So as our revenue momentum improves, the profit share, therefore, should improve, right? Whatever happened in this quarter or the last few quarters in terms of profit share is not reflective of our underlying Biologics performance?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Understood. My second question is on peg and to some extent, on Ogivri. First on Fulphila. We have seen at least the secondary data that we are seeing -- have seen that market share is up at about 6% for peg for the last few months. As -- and even the volumes have recovered in the month of June, I know it's just 1 month of data, our market share has been flat. So how confident are we of improving market share, given, one, we've seen new players come in; and second, we have seen the largest player in the market, biosimilar player in the market seeing a recovery in market share? Second, also, if you can comment on your views on pricing given higher competition in both trastu and peg? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 24, 2020 / 3:30AM, BION.NS - Q1 2021 Biocon Ltd Earnings Call

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : Siddharth, this is for you. On the generic business, now on the formulation side, we are a relatively small business at this point of time. And with the market dynamics being what they are, I mean how are we looking at this business over the next 3 to 5 years? And what kind of investments are you looking to make in this business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 24, 2020 / 3:30AM, BION.NS - Q1 2021 Biocon Ltd Earnings Call

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : I have 2 questions. One pertaining to the recent Voluntis agreement, do you have competition in the similar area?

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Okay. And is there a limitation because the focus is on type 2 diabetes, so -- which is more an oral service?

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Yes. Certainly very novel and all the best for that. My second question is on the R&D spend. How much would you -- are you planning to spend on R&D over the next 2, 3 years?

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Yes. But how much will be the spend?