Biocon FY27 plan: in-licensing, 5 US biosimilars pipeline

What Biocon is signalling ahead of FY27

Biocon is stepping up business development efforts in biosimilars, while preparing for a busy launch calendar in FY27 that management expects to support growth and margins. Chief Executive Officer and Managing Director Shreehas Tambe said the company is actively scouting in-licensing opportunities, aiming to use its expanding global commercial footprint to strengthen therapy franchises. The push comes as biosimilars have become the largest contributor to Biocon’s revenue mix and as competition in key biologics categories intensifies.

Tambe said Biocon has built capabilities across several markets and is looking for “synergistic opportunities,” with a dedicated team scouting assets. The company’s stance indicates it wants to add products or rights that can plug into its current development, manufacturing, and commercial platform, rather than building every programme in-house.

In-licensing: why it matters for the portfolio

In-licensing can shorten the time it takes to broaden a biosimilars portfolio, especially when manufacturing and regulatory capabilities are already in place. Biocon’s comments highlight that it is looking at external assets to expand coverage across therapy franchises. While no specific in-licensing targets were disclosed, the stated goal is to leverage its global reach and market capabilities.

The timing is notable because Biocon is simultaneously working through a multi-product launch cycle in the US and other markets. A broader portfolio can also help diversify revenue away from a single product cycle and support negotiations with payers and partners in large markets.

FY27 launch cycle: multiple products, heavier second half

Management expects the impact of FY27 launches to be more pronounced in the second half of the year. Tambe described a “multi-product launch cycle” as a key revenue driver.

Biocon expects five biosimilar launches in the US alone in the next 12 months. Products referenced in the company’s launch plan and commentary include insulin aspart (branded Kirsty), aflibercept (Yesafili), bevacizumab, and denosumab biosimilars. The company also indicated that multiple products will drive sales and revenues, but it is emphasising “sustainable margins and profitable growth” rather than chasing only market share.

US execution: Yesintek traction and next launches

Yesintek, Biocon’s biosimilar to Stelara (ustekinumab), has scaled to nearly 20% market share in the US, described as “nearly a fifth of the market” by Tambe. In a separate disclosure, the company also cited that Yesintek has over 70% commercial formulary coverage, underlining payer access as a key pillar for scaling.

Denosumab biosimilars have launched, strengthening Biocon’s oncology and bone health franchise. Insulin aspart (Kirsty) has launched in closed-door networks and is expected to expand into commercial payer channels in the second half. Biocon also expects aflibercept biosimilar Yesafili to enter the US market in the second half of FY27, with bevacizumab expected to start driving sales around the same time.

Beyond India: US and emerging markets in focus

Executive Chairperson Kiran Mazumdar-Shaw said Biocon is looking beyond India, with the opportunity in the US and emerging markets. She also described biosimilars as the company’s key growth driver going forward. That directional statement aligns with the company’s disclosed revenue mix shift toward complex biologics.

Biocon also highlighted the strategic fit between its insulin biosimilar portfolio and GLP-1 pipeline, stating it can address diabetes care across multiple therapies. This positioning matters because the global diabetes and obesity market has been rapidly evolving, with GLP-1 therapies gaining share.

GLP-1 filings: semaglutide and liraglutide progress

Biocon has filed semaglutide in Canada, Brazil, Saudi Arabia and Turkey, and said it continues to file in other markets. India is “not on the immediate list,” though regulatory processes are underway. Separately, management has spoken about preparing for a day-one launch of semaglutide in select markets, with filings underway and approvals expected by late 2026 or early 2027.

On liraglutide, the company has pointed to launches across EU markets as a growth driver, and disclosed that liraglutide was launched in the Netherlands for diabetes (gVictoza) and obesity (gSaxenda) as its first “direct-to-market” GLP-1 in the EU. Biocon also noted that liraglutide has generated over $1,600 million in annual sales globally.

Capacity and capex: Malaysia insulin expansion

Biocon plans to double drug product capacity at its Malaysia insulin facility by FY27, with drug substance expansion to follow in FY28-29. Management has also indicated that most major expansions are complete, and that ongoing investments are focused primarily on insulin capacity, pointing to a shift toward operational leverage.

The company has also referenced partnerships and channels for insulin access, including a partnership with the California government through Civica Inc. to supply affordable insulin glargine under the CalRx initiative.

Financial snapshot: revenue mix and Q2 FY26 performance

Biocon disclosed that biosimilars contribute 58% of total revenue, compared with 19% from generics and 23% from research services, reflecting a steady shift toward biologics. In a Q2 FY26 update, the company reported operating revenue of ₹42,960 million, up 20% year on year. Core EBITDA was ₹12,180 million, up 23%, with EBITDA margin at 21%.

Within segments, biosimilars revenue was ₹27,210 million (25% growth) and biosimilars EBITDA was ₹6,690 million, with EBITDA margin at 25% (up about 400 basis points). Generics revenue was reported at ₹7,740 million and research services (Syngene) at ₹9,110 million.

What brokerages and reports are flagging

Brokerage commentary cited in the report suggests biosimilars remain the core growth engine, although competition is expected to intensify. Citigroup forecast biosimilar sales growing at a 16% compound annual growth rate between FY26 and FY28. Kotak Securities pegged the rise in Biocon’s US biosimilars sales during the March quarter at 11% year on year.

Nomura noted that US sales excluding generic Revlimid in the three months trailing February were $105 million, compared with $187 million in the same period last year. Separately, Axis Securities said that following restructuring and the exit of structured debt holders, interest costs are expected to decline by around ₹3,000 million year on year in FY27, with capex also set to moderate.

Key numbers to track

Why the FY27 setup matters

Biocon’s FY27 setup combines three levers that investors typically watch in biosimilars. First is execution on launches and payer access in the US, where early market share in products like Yesintek can influence future contracting. Second is portfolio depth, where in-licensing can add optionality and reduce dependence on a narrow set of products. Third is cost and balance sheet trajectory, where lower interest costs and moderating capex can support profitability if launch ramp-ups go as planned.

At the same time, the company and brokerages have flagged competitive intensity in biosimilars. That makes management’s repeated emphasis on “sustainable margins” relevant, particularly as more products enter crowded categories over the next few years.

Conclusion

Biocon is positioning FY27 around a faster biosimilars cadence, a more active in-licensing pipeline, and capacity expansion in insulin, with the heaviest launch impact expected in the second half. Near-term milestones include additional US payer channel expansion for Kirsty, the expected second-half US entry for Yesafili, and the scaling of bevacizumab sales. Updates on in-licensing progress, additional filings, and launch execution are likely to be key watchpoints as the company moves through FY27.