News Pharma Industry

New Group CEO is someone who understands Biocon’s business synergy well: Kiran Mazumdar-Shaw


In an interview to ET Now, Kiran Mazumdar-Shaw, chairperson, Biocon, talks about the likely KRAs of new Group CEO Peter Bains. Excerpts below (edited for clarity):

ET Now: Can You give us an idea of the KRAs for Peter Bains? What is going to be the immediate priority, and what kind of value creation are you trying to achieve with this appointment?
Kiran Mazumdar-Shaw: Every one of our individual businesses is at an inflection point of high growth. We believe that this is an opportunity for us to create premium growth at a group level. That is what I think this strategy is all about.

Enhance Your Healthcare Expertise with High-Impact Courses

Offering College Course Website
IIM Kozhikode IIMK Healthcare Management & Analytics Programme Visit
Indian School of Business ISB Healthcare Management Visit

While our individual businesses are being valued, what is not being valued correctly, we believe, is the group value that is brought together by these three businesses.

Biocon is a very unique business entity in the sense that it brings very important complementary businesses under one roof. And it provides every stakeholder a huge value-creation opportunity in terms of investment. We believe that as a business, it is also a huge value creating opportunity for us.
Peter, who is a veteran when it comes to the pharma and biopharma industry in terms of his global experience, also understands the Biocon Group because he has basically played a very key role in Syngene. Through Syngene, he has understood the entire Biocon business very well because many of the capabilities and competencies that Biocon had were leveraged by Syngene during his time. He knows what this group synergy is all about.Coming to his mandate, I think Peter is very clear that he is going to focus on making sure that the group strategy reflects the synergistic strategies at the individual levels. So his main focus is going to be to work with the CEOs on their strategies, refine them, and make sure that they are adopted extremely well at a group level so that the group benefits from every single one of its businesses.Given that all three businesses are independent of each other, how would a group CEO look to intervene in the existing structure?
I will start the process and then Peter can add to it. However, as far as each CEO is concerned, they will work very independently and autonomously. But like I said, there are many aspects of our businesses which actually have commonality.For example, between the three businesses, we have put in place large capacities — whether it is bio manufacturing, whether it is drug products, both oral dosage and injectables, or whether it is small molecule APIs. These businesses, in terms of manufacturing scale and capacity, are at global scale. I think each one of our businesses can and has been leveraging these capacities as and when required.

The opportunity that lies ahead is really to ensure that we minimise idle capacity across the group. And that is something that Peter will look into.

Any news about the timeline for Biocon Biologics IPO?
I do not think I will be able to give you any more in terms of the timelines than what I have shared in the past. We need to look at certain triggers that will help us hit those dates that we are looking at.

I have clearly indicated that we certainly want to look at an IPO within two years. And a lot of it depends on a number of aspects, markets, business triggers, and the urgency of doing such IPOs. We will look at all these very carefully.

Any update on Insulin Aspart approval timeline?
Right now I have nothing firm to tell you, but I just hope that we will get this approval soon. That is all I can say.

All right. Any guidance on when Biocon can expect to launch the biosimilar aflibercept in the US? And will Biocon get the interchangeability?
These are questions that will be better answered a few months down the line. Right now, all I can say is we do hope to be the first approved aflibercept. We have got the nod from the EU authorities. We hope we will get the nod from the USFDA too. But a lot depends on patent expiration dates and the discussions that we have with innovators, etc.

Lastly, in the small molecule business, when is the new facility at Visakhapatnam getting commercialised?
It is already in the commissioning stage. We hope to operationalise it by the end of this year. So I think you will start seeing exports taking place, hopefully, quite soon.


Source link