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Biocon slips after CFO resigns

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Biocon declined 4.76% to Rs 254.25 after the company said that its chief financial officer (CFO), Indranil Sen has resigned with effect from 15 March 2024.
Indranil Sen has resigned due to pursue opportunities outside the organization. He was relieved from his duties, by the close of business hours on 14 March 2024.
Meanwhile, the pharmaceutical company announced a long term commercial cooperation with Eris Lifesciences to increase patient access to their metabolics, oncology, and critical care portfolio in India.
This collaboration is in line with the companys strategy to unlock value from its legacy business of branded formulations built over the past two decades and extends its existing partnership with Eris for Biocons Nephrology and Dermatology business announced in December 2023. As a part of this collaboration, the company will continue to leverage Eris strong commercial footprint to significantly expand patient access to its world class biosimilars in India.
The company has signed a 10-year supply agreement with Eris, as a part of this deal. The total transaction value of sale is Rs 1,242.0 crore, which represents an accretive multiple of 3.4x of revenues and 18x of EBITDA. The transaction is expected to come into effect before 15 April 2024, subject to customary closing conditions.
Shreehas Tambe, CEO & MD, Biocon Biologics, said: This strategic collaboration with Eris Lifesciencesfor our portfolio of Metabolics, Oncology, and Critical Care products in India aligns with our commercial strategy to maximize patient reach and market potential. It builds on the success of our existing partnership with Eris for our Nephrology and Dermatology products and will allow us to deliver our high quality, lifesaving biosimilars to millions of patients in India. Biocon Biologics remains committed to a successful transition of employees of these business units, our product brands, and customers to ensure continuity for patients.
Biocon is an innovation led global biopharmaceuticals company, engaged in the production of therapies for chronic conditions like diabetes, cancer and autoimmune. It has developed and commercialized novel biologics, biosimilars, and complex small molecule APIs in India and several key global markets as well as Generic Formulations in the US, Europe & key emerging markets. It also has a pipeline of promising novel assets in immunotherapy under development.
The company had reported consolidated net profit of Rs 660 crore in Q3 FY24 as compared with net loss of Rs 41.8 crore posted in Q3 FY23. Revenue from operations jumped 34.43% year on year (YoY) to Rs 3,953.7 crore in the quarter ended 31 December 2023.
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First Published: Mar 15 2024 | 11:08 AM IST

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