Biocon Limited

Kiran Mazumdar

Shaw – Executive Chairperson, Biocon Limited

Siddharth Mittal

CEO & Managing Director, Biocon Limited

Indranil Sen

Chief Financial Officer, Biocon Limited

Shreehas Tambe

CEO & Managing Director, Biocon Biologics Limited

M.B. Chinappa

Chief Financial Officer, Biocon Biologics Limited

Susheel Umesh

Chief Commercial Officer – Emerging Markets, Biocon Biologics Limited

Matthew Erick

Chief Commercial Officer – Advanced Markets, Biocon Biologics Limited

Abhijit Zutshi

Commercial Head - Global Generics, Biocon Limited

Nehal Vora

Commercial Head - Global API, Biocon Limited

Sibaji Biswas

Chief Financial Officer, Syngene International

Saurabh Paliwal

Head - Investor Relations, Biocon Limited

Nikunj Mall

Head - Investor Relations, Biocon Biologics Limited

rs,

2, 2023 To, The Secretary BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code - 532523 Dear Sir/Madam, Subject: Transcript of Earni

2 billion

ition of Viatris’ global biosimilar business, Biocon Biologics had made an upfront payment of US$ 2 billion and issued US$ 1 billion of Convertible Securities to Viatris. The upfront payment was funded throu

1 billion

biosimilar business, Biocon Biologics had made an upfront payment of US$ 2 billion and issued US$ 1 billion of Convertible Securities to Viatris. The upfront payment was funded through US$ 1.2 billion of d

1.2 billion

ed US$ 1 billion of Convertible Securities to Viatris. The upfront payment was funded through US$ 1.2 billion of debt raised by Biocon Biologics, US$ 650 million of equity infusion by Biocon and US$ 150 millio

650 million

s. The upfront payment was funded through US$ 1.2 billion of debt raised by Biocon Biologics, US$ 650 million of equity infusion by Biocon and US$ 150 million of equity infusion by Serum. Biocon had raised

150 million

.2 billion of debt raised by Biocon Biologics, US$ 650 million of equity infusion by Biocon and US$ 150 million of equity infusion by Serum. Biocon had raised US$ 420 million of mezzanine financing to part f

420 million

quity infusion by Biocon and US$ 150 million of equity infusion by Serum. Biocon had raised US$ 420 million of mezzanine financing to part fund the US$ 650 million equity infusion into Biocon Biologics. I

₹1,200 Crore

nto definitive agreements with Kotak Strategic Situations Fund, for a structured funding of up to ₹1,200 Crores. This funding together with the recently concluded stake sale in Syngene will help to reduce our

54.9%

bt. It is important to point out that Biocon continues to maintain majority control in Syngene at 54.9%, post this divestment. Furthermore, we believe the divestment achieves two key objectives – reduc

36%

financial highlights of the quarter. At a consolidated group level, revenues for Q3 FY23 were up 36% on a year-on-year basis at ₹3,020 Crores. Revenues from our Biosimilars Business and Research Ser

₹3,020 Crore

arter. At a consolidated group level, revenues for Q3 FY23 were up 36% on a year-on-year basis at ₹3,020 Crores. Revenues from our Biosimilars Business and Research Services Business delivered strong year-on-

54%

m our Biosimilars Business and Research Services Business delivered strong year-on-year growth of 54% and 23% respectively, and our Generics Business grew at a healthy 18%. Core EBITDA, i.e. EBITDA e

“The recording will be available on our website within a day and the transcript will be uploaded subsequently.”

“We have also drawn up a comprehensive integration plan and intend to start migrating business operations in a phased manner.”

“This, I would again emphasize is a one-off event and we expect it to return to normal from next quarter.”

“We expect to complete the validation batches in both sites by H1 of FY24.”

“We have expanded our reach through 8 new launches across emerging markets and the franchise will be augmented by the integration of Viatris’ Emerging Market territories.”

“Concluding Remarks I would like to conclude by saying that we expect to end FY23 on a strong note, with healthy growth across all our businesses.”

“Directionally, Biocon Biologics will be exiting FY23 at a US$ 1 billion trajectory, excluding vaccines.”

“So, we have approval for all the strengths, or a specific strength and secondly, with respect to interchangeability, what is the kind of timeline can we expect to get the approval?”

“So, we come on the back of previous success and we're quite confident in how our product will be received when we launch it in the US.”

“And lastly, if I may on this agreement with Zentiva any commercial outlook or guidance on this business?”

Kiran Mazumdar-Shaw

22

Shreehas Tambe

21

Siddharth Mittal

17

Saurabh Paliwal

16

M.B. Chinappa

13

Cyndrella Carvalho

12

Sameer Baisiwala

11

Matthew Erick

9

Surya Patra

9

Shyam Srinivasan

8

Saurabh Paliwal

Good morning, everyone. I am Saurabh Paliwal from the Biocon Investor Relations team, and I would like to welcome you to Biocon's Q3 FY23 Earnings conference call. I would like to indicate that all participants will be in the ‘listen-only’ mode and there will be an opportunity for you to ask questions once the management’s commentary concludes. Should you need to ask questions, please select the “Raise Hand” icon under the ‘Reactions’ tab of the Zoom application. We will call out your name and unmute your line to enable you to ask the question. While asking, please begin with your name and your organization. Please note that the chat box is disabled, but you can raise any technical concerns by sending us an email to investor.relations@biocon.com. I would also like to bring to your attention that this conference call is being recorded. The recording will be available on our website within a day and the transcript will be uploaded subsequently. Today, to discuss the Company's Business Pe

Dr. Kiran Mazumdar-Shaw

Thank you, Saurabh. Good morning everyone. I would like to start with the national budget which was presented by the Honourable Finance Minister on the 1st of February this year. The budget has a favourable impact on our business especially with respect to Research. While details are yet to be published, the increased focus for R&D in pharma and healthcare through Centres of Excellence is certainly a step in the right direction. Now coming to the Viatris transaction Biocon Biologics successfully completed the acquisition of Viatris’ global biosimilars business on November 29, 2022. Consequently, incremental revenues and profits post deal closure are reflected in its earnings this quarter. Viatris continues to provide commercial and other transaction services to Biocon Biologics as part of a pre-agreed Transition Services Agreement. In parallel, Biocon Biologics is designing a bespoke country specific strategy and business model that optimizes for revenues and profitability. This we bel

Saurabh Paliwal

Thank you, Kiran. We will take a moment for people to raise their hands to ask a question. I will request the participants to please limit their questions to two, to allow other people in line to get an opportunity. We will start with Tushar Manudhane from Motilal Oswal. Tushar, please go ahead.

Tushar Manudhane

Yeah, thanks for the opportunity. Just on the Adalimumab clarification. So, we have approval for all the strengths, or a specific strength and secondly, with respect to interchangeability, what is the kind of timeline can we expect to get the approval?

Shreehas Tambe

Sure. Thanks, Kiran. Thanks for the question. We've seen that there are several players in the market; there are low strength and high strength formulation players. We have a low strength formulation. We also have a product which really checks the key boxes of being citrate free, latex free and a device, which will really be what the patient experience is all about. So, we believe that we've got what it takes to be competitive in this market, Tushar. Another important aspect that you're talking about is interchangeability, that is something that remains to be seen. We believe that may not necessarily be a critaeria to win. We do not see other biosimilars which are currently taken up in the national formularies having interchangeability at this point. Nevertheless, it's something that we will pursue, and we will have the right to win when we get our product into the market.

Shreehas Tambe

So, at this stage if you really look at it, the market from innovator perspective, has been moved to the high concentration, but we do not see high concentration or a low concentration really being the differentiator. We've seen a similar commentary from other incumbents who have come there and other players who have also looked at bringing products. We’ve also seen payor acceptance of other biosimilars, which have been launched. So that may not necessarily be a criteria for success. Transcript - Biocon Limited Q3FY23 Earnings Call