Biocon Ltd. — Call Transcript 2024

Aug 10, 2024

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Biocon Limited 20th KM, Hosur Road Electronic City Bangalore 560 100, India T 91 80 2808 2808 F 91 80 2852 3423

CIN : L24234KA1978PLC003417

www.biocon.com

BIO/SECL/SP/2024-25/67

August 10, 2024

To, The Secretary BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street,Mumbai – 400 001	To, The Secretary National Stock Exchange of India Limited Corporate Communication Department Exchange Plaza, Bandra Kurla Complex Mumbai – 400 050
Scrip Code - 532523	Scrip Symbol- BIOCON

Dear Sir/Madam,

Subject: Presentation and Video Recording of Q1 FY25 Earnings Call

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), please find enclosed the presentation on Q1 FY25 Earnings Call conducted on August 09, 2024. The same is also available on the website of the Company at www.biocon.com.

Further, the Video Recording w.r.t. the Earnings Call is also available on the website of the Company at https://www.biocon.com/news-biocon/video-gallery-biocon/quarterly-statementsbiocon/#1653297216088-5a4e9281-2d49.

Kindly take the above said information on record.

Thanking You,

Yours faithfully,

For Biocon Limited

MAYANK Digitally signed by MAYANK VERMA VERMA Date: 2024.08.10 14:03:16 +05'30'

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Mayank Verma Company Secretary & Compliance Officer Membership No.: ACS 18776

Encl. as above

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Biocon Limited Q1FY25 Earnings Call

09 - A U G U S T - 2 0 2 4

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The Multiplier Effect M A X I M I Z I N G V A L U E

Safe Harbor Statement

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Certain statements made during the call concerning the future growth prospects of the Company may be forward-looking statements, which are subject to number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements. that could cause actual results to our Important factors differ materially from expectations include, amongst others general economic and business conditions in India, our ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing competition in and the conditions of the Indian biotechnology and pharmaceuticals industries, changes in political conditions in India and changes in the foreign exchange control regulations in India. Neither the Company, nor its directors and any of the affiliates have any obligation to update or otherwise revise any statements reflecting circumstances arising after this date or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

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Group CEO Opening Remarks

Opening Remarks: Q1 FY25 Performance Overview

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Strong performance on a reported basis, driven by the impact of the Eris Lifesciences business transfer consummation Underlying Group Financial performance relatively subdued; inline with expectations and previous guidance

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Mix of headwinds and tailwinds across the businesses; Biosimilars delivered strong like-for-like growth Q1 trends expected to continue into Q2, transition towards accelerating growth across businesses expected in H2 FY25

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Financial Highlights

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Financial Highlights – Q1 FY25

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In ₹ Cr Q1 FY25 Q1 FY24 Q4 FY24 YoY% QoQ%
Generics 659 700 719 (6) (8)
Biosimilars 2,083 2,015 2,358 3 [3] (12)
Research Services 790 808 917 (2) (14)
Revenue from Operations 3,433 3,423 3,917 0 (12)
Total Revenue 4,567 [1] 3,516 3,966 30 15
Core EBITDA [2] 903 936 1,176 (4) (23)
% Margin 26% 28% 30%
R&D 228 315 246 (28) (7)
% of Revenue (Ex. Syngene) 9% 12% 8%
EBITDA 1,755 808 964 117 82
% Margin 38% 23% 24%
Profit Before Tax 1,114 184 328 506 240
(Before exceptional items)
% Margin 24% 5% 8%
Net Profit
648 101 144 539 351
(Before exceptional items)
Exceptional item, net of taxes 12 - (8) -
Net Profit (Reported) 660 101 136 551 386
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1 Q1 FY25 Includes income from the strategic collaboration / business transfer agreement with Eris Lifesciences of ₹1,057 Cr

2 Core EBITDA defined as EBITDA before forex, dilution/ fair valuation gain in Bicara, R&D, licensing income, sale of non-core BFI assets and mark to market movement on investments; Q1 FY25 number excludes income from the strategic collaboration / business transfer agreement with Eris Lifesciences | 3 Adjusted for Branded Formulations Unit, India revenues in Q1 FY24, YoY growth is 11%

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Generics

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Biocon Generics: Q1 FY25 Business Performance update

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Overall performance for Q1 muted, but inline with expectations. Reflects Q1 Q1 Q4
In ₹ Cr YoY% QoQ%
pricing challenges in both APIs and formulations. FY25 FY24 FY24
Revenue from
Signed an exclusive licensing agreement with Handok, South Korea for 659 700 719 (6) (8)
Operations
synthetic Liraglutide for the treatment of chronic weight management.
Core EBITDA 123 161 155 (23) (20)
17 market filings across global markets including 2 ANDA’s in the US.
Received 3 approvals including our first generic injectable drug product % of revenue 18% 22% 21%
approval, for Micafungin, in the US.
R&D 64 54 65 18 (1)
FDA conducted GMP/PA inspections at API facilities Site-5 and Site 6 in
Visakhapatnam in June. Responses to observations submitted to the % of Revenue 10% 8% 9%
agency; EIR received for Site 5 in August with ‘VAI’ status.
EBITDA 59 104 92 (43) (35)
In June, ANVISA conducted an audit of our oral solid dosage facility in
Bengaluru, which concluded with no major or critical observations. % of Revenue 9% 14% 13%
Q2 expected to be relatively muted; performance to build in H2 led by PBT 17 64 50 (73) (65)
new formulation launches, including launch of Liraglutide in the UK, for
diabetes and obesity. Preparations underway. % of revenue 3% 9% 7%
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Biosimilars

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Biocon Biologics: Q1 FY25 Business Performance Update

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Focus in FY25 on consolidation and leveraging unique, vertically integrated model to drive profitable growth Strong demand across product range in the US with double-digit market shares

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Market shares in Europe stable with strong performance in key markets e.g. market leader for bAdalimumab in Germany Higher bBevacizumab, rh-Insulin and bEtanercept sales in Emerging Markets and 12 new launches

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US: Key Product Market Share (IQVIA - Monthly) Europe: Key Product Market Share (IQVIA - Quarterly)
25% 25%
20% Fulphila, 20% 20%
Ogivri, 19%
15% 15%
Semglee Total, 11%
10% 10%
Ogivri (in IV), 9%
Fulphila, 6%
5% 5% Hulio, 6%
Abevmy, 4%
Semglee, 4%
Nepexto, 2%
0% 0%
% Market share by volume (Eq SU) % Market share by volume (Eq SU)
Jul'18 Oct'18 Jan'19 Apr'19 Jul'19 Oct'19 Jan'20 Apr'20 Jul'20 Oct'20 Jan'21 Apr'21 Jul'21 Oct'21 Jan'22 Apr'22 Jul'22 Oct'22 Jan'23 Apr'23 Jul'23 Oct'23 Jan'24 Apr'24 Jun’24 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
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Biocon Biologics: Q1 FY25 Financial Update

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Q1 Q1 Q4
In ₹ Cr YoY% QoQ%
FY25 FY24 FY24
Revenue grew 11% vs. last year on a like-to-like basis after adjusting Revenue from
2,083 2,015 [1] 2,358 3 (12)
for revenues in Q1FY24 from the BFI Unit, India Operations
Core EBITDA 614 513 698 20 (12)
Growth driven by increase in market shares, tender wins and new
launches
% of revenue 30% 28% 30%
EBITDA remains healthy at 23%
R&D 166 259 176 (36) (6)
R&D Investments at 8% of revenues - a key driver of growth
% of Revenue 8% 13% 7%
PBT of ₹1,065 Cr which includes a one-time gain from Eris
EBITDA 474 457 564 4 (16)
collaboration consideration
% of Revenue 23% 23% 24%
1Includes sales from the BFI Unit, India and Licensing Income
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Biocon Biologics: Q1 FY25 Regulatory Update

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USFDA approved Yesafili, bAflibercept, as the 1st interchangeable biosimilar - marks our entry into Ophthalmology

bDenosumab global clinical trial has met required endpoints; ontrack for filings later this year

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• EMA renews GMP Certificates of Compliance for Bangalore and Malaysia sites

• U.S. FDA concluded combined GMP and Pre-Licensing Inspection (PLI) of Biocon Park, Bangalore facilities

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Research Services

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Syngene: Q1 FY25 update

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• Q1 performance inline with expectations and guidance given in Q4 FY24

Steady performance by Dedicated centers with continued growth momentum in Biologics manufacturing driven by both commercial and clinical scale projects Discovery Services was affected by the funding environment for biotech's. Request for proposals (RFP) are up 50% year-over-year; Q1 also saw the start of several pilot projects for pharma companies. Successful delivery of pilot projects is expected to build a foundation for larger scale future collaborations; Syngene expects to win its fair share of these pilots Increased visits by companies exploring outsourcing option beyond China; adds to positive outlook and long-term tailwinds	In ₹ Cr	Q1 FY25	Q1 FY24	Q4 FY24	YoY%	QoQ%
	Revenue from Operations	790	808	917	(2)	(14)
	EBITDA	188	235	333	(20)	(44)
	% of Revenue	23%	28%
	PBT	69	123	209	(44)	(67)
	% of revenue	9%	15%	22%

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Concluding Remarks

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Concluding Remarks: Q1 FY25

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Underlying operating performance – inline with expectations and earlier guidance

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Second quarter performance expected to largely mirror the first quarter performance in fiscal 2025

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Expect transition to accelerated growth in the second half, underpinned by -

Continued traction in Biosimilars New product launches in Generics

Momentum expected to build in Syngene; to meet its guidance range for the year

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Q & A

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The Multiplier Effect M A X I M I Z I N G V A L U E