Shaw: Big plans

Calcutta, Sept. 4: Biocon Limited aims to be a billion-dollar company within the next five years.

The company is not only trying out new innovations but also looking at inorganic growth through acquisition of companies that provide it access to intellectual property rights or new molecules for development.

The biotech firm is also planning to double its headcount, which is 2000 at present, within the next two years.

However, Biocon’s net profit for the April-June quarter this year dipped 20.4 per cent at Rs 39 crore compared with the corresponding period last year. The earnings declined because of price pressures on Statin drugs in Europe, higher investments in research, increased expenditure in capacity expansion and higher depreciation and interest outgo.

Kiran Mazumdar-Shaw, chairman and managing director of Biocon, said, “The biotech industry in India is expected to grow to $5 billion in the next five year from $1 billion at present. This reflects the growth potential of the industry.”

Biocon is also looking for premier institutes in the eastern region to partner with for research-oriented projects. The company is, in fact, in the process of identifying institutes across the country. The list is expected to be ready soon.

“New innovations and discovery-led R&D will be the key differentiator to address global pharmaceutical opportunities,” said Shaw. The company spends between 12 to 15 per cent of its revenues on research and development.

“This is a transition year for us. The big opportunity lies in the next fiscal,” Shaw added.

The global generic industry is expected to grow significantly over the next few years with sales in excess of $60 billion slated to lose patent protection or market exclusivity by 2008.