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Biopharma major Biocon has hired the services of global consulting giant McKinsey to create a new structure to help the company achieve its ambitious sales target of $1 billion by FY2018.
The company has already reorganised itself to focus on five key business verticals — small molecules comprising complex APIs (active pharmaceutical ingredients), biosimilars including affordable insulins and MAbs (monoclonal antibodies), novel molecules including biologicals for diabetes and autoimmune diseases, and value added generics and branded formulations — in addition to integrated research services through its subsidiary Syngene.
“McKinsey is advising Biocon on an effective and scalable organisation structure to deliver on our ambitious and differentiated growth strategy,” Arun Chandavarkar, COO, told Business Line .
A McKinsey spokesperson, however, refused to comment on the development saying that it does not respond to queries regarding individual companies.
Successive quarters
In its current form, Biocon has had three successive quarters of growth this fiscal. For the third quarter, the biopharma major recorded an eight per cent increase in net profit to Rs 92 crore on the back of a 24 per cent growth in revenues to Rs 643 crore on a year-on-year basis.
It also recently tied up with international pharma major Bristol Myers Squibb for the global clinical development of oral insulin IN 105 after shrugging of a setback when its deal with Pfizer was called off last year.
Chandavarkar said the way to the $1-billion target will be driven by key business verticals through a combination of new product approvals and expansion of the geographic footprint, especially in emerging markets.
It also plans to grow in branded formulation business in India in key therapeutic segments, creating a licensable portfolio of R&D assets comprising both biosimilars and novel biologicals and expansion of its manufacturing capabilities.
The company is also setting up business units in each of these growth drivers, he said.
An analyst report from ICICI Direct said Biocon has put in place all the necessary blocks and with incremental sales from its Malaysian facility, which is expected to go on stream by FY15, it should be able to achieve its targets.
Biocon shares closed the day at Rs 284.85, about the same as the previous closing day.
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