'It is not just the US and European opportunity, but it is a huge global opportunity.'
The peptides and GLP-1 class of drugs that are offering breakthrough treatment for diabetes and obesity are estimated to be a $100 billion global opportunity by 2030.
Speaking to Sohini Das and Aneeka Chatterjee/Business Standard over a video call, Kiran Mazumdar-Shaw, executive chairperson, Biocon and Biocon Biologics, outlines how being vertically integrated puts Biocon in a strong position.
The generics business has seen some pricing pressure in Q1FY25. What is the outlook?
I would rather not focus on pricing pressure and markets.
I would rather focus on the overall generics business, which I think has huge growth potential in the second half because of the glucagon-like peptide 1 (GLP-1) agonists opportunity.
It is not just the US and European opportunity, but it is a huge global opportunity.
We are seeing a great demand for this first GLP 1, which has genericised both from a diabetes and obesity point of view.
We have a dominant position on many of our generic molecules, whether it is active pharmaceutical ingredients or generic finished formulations.
How are you positioned to take advantage of the GLP-1 off patent opportunity?
I really think real growth and the real opportunity are going to come from GLP1, starting with Liraglutide.
The Semaglutide opportunity is opening up in 2026, and that is going to add to that excitement because that is the product everyone is focusing on.
Now, having said that, why is Biocon so unique in this Peptide business? For one, I think Peptides are not an oral tablet and it's not just an injectable.
This GLP-1 is like an insulin -- it needs devices, large volumes, and capacities for producing both cartridges and devices or auto-injectors. So it is a device play.
You have filed for approval for your GLP-1 with the United States (US) Food and Drug Administration.
How critical is an early approval to make the most of this current market shortage for GLP-1s?
The US market is a good market, because the price points are higher.
It is going to be an interesting window of opportunity because there is such a shortage of Semaglutide and Mounjaro (Eli Lilly's drug Tirzepatide).
So as long as there's that shortage there will be scope for a product like Liraglutide.
If Semaglutide and Mounjaro are going to be expensive, and you get a generic Liraglutide at a fraction of the price then obviously, European health care systems are going to promote Liraglutide.
In the US, I think there is a window of opportunity for Liraglutide, which we need to address.
You started work early on GLP-1s. Can you share some details?
In 2007, Biocon had a partnership with Amylin Pharmaceuticals. We were developing a GLP1 molecule together similar to Mounjaro.
We had developed it with a company in San Diego and that company was acquired first by Bristol Myers Squibb and then later on sold to AstraZeneca, and they dumped this product.
What a blunder they made! Seven years ago we discovered this molecule, and in fact, the US company had told us about its obesity potential.
You haven't applied for Liraglutide in India. Do you now plan to do so?
We didn't do it because there was a requirement for a clinical trial.
Now, because it is approved in the United Kingdom, we can get a clinical trial waiver, and introduce it if we want.
So, yes, there is now an interest in India too.
We have exited the branded formulations business in India, but we will work with companies who are interested in this molecule.
Will you be open to divesting more of your businesses?
No, I think we have done our divesting. I think the reason
why we did the divesting of the India business is because we felt that that was a business we could support through supplying products and let somebody else really drive the marketing, because India is a very different market.
So we said, let them drive it. We'll supply them products.
And Eris, for instance, is doing a very good job of building a market share of our brands through them.
What measures are being planned to pare debt?
In the last two quarters we have comfortably serviced our debt. We used proceeds from Eris, and also our internal accruals to pay for it.
We would want to repay even more debt.
Feature Presentation: Aslam Hunani/Rediff.com
