Continuing it emphasis on innovation, biotechnology major Biocon plans to spend 10 per cent of its annual biopharma revenue on research and development in the next fiscal year.
The company, which is pursuing R&D in both novel biologics as well as biosimilars (generic versions of biologic drugs), in various stages of trials, had spent around Rs 131 crore on R&D in the previous fiscal year which was 6 per cent of biopharma sales.
“As an innovation-led company, Biocon continuously invests in cutting-edge innovation that will deliver exponential value in the long-term… On an average, the company is likely to continue spending around 10 per cent of its biopharma sales on R&D,” Biocon CMD Kiran Mazumdar Shaw told PTI.
The Bengaluru-based company has spent Rs 47 crore on R&D in the third quarter of this fiscal, an increase of 124 per cent over the corresponding period of the year ago period.
The firm had a revenue of Rs 436 crore from its biopharma business during the quarter.
“The increase in R&D spend augurs well for the company as it reflects the progress made by Biocon in its biosmilars and novel programmes,” she added.
Stating that biosimilars business is a very integral part of Biocon’s future growth story, she said focus would be “initially in the emerging markets and later in the developed countries”.
“These are investments Biocon has to make because they are integral to the company’s business model,” she added.
Biocon has shaped its business into five key growth verticals — small molecules (APIs), biosimilars, branded formulations, novel molecules and research services.