Hi everybody,
I think Biocon is a company going through temporary headwinds and has a good chance that it will come out stronger after this phase of consolidation.
Biocon has 3 business arms: syngene ( research and CDMO) , biocon biologics ( biologics) and generics
It owns 54% of syngene ( which is doing phenomenally well) and it has the same mCap as biocon…( talk about margin of safety)
Biocon biologics is proabably going to be listed in the next 2 years and is growing at 30% and has a good runway in the biologic space.By conservative estimates of private placement to serum india kotak group this part is probably valued at 15000 crores( 48% of current mcap of biocon)
The generic business is trundling along
The.present downturn is due to the ambitious take over of the biologics division of viatris and the resultant debt . However it will allow them to market directly to customers in the US .
Please share your thoughts
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