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Biocon Biologics Ltd, the biosimilars subsidiary of Biocon Ltd, will reassess plans to go public only after the return of normalcy, executive chairperson Kiran Mazumdar-Shaw said in an interview. The covid-19 pandemic has pushed back Biocon’s $1-billion annual revenue target set for the subsidiary as well as plans to go for an initial public offering (IPO).

“As soon as normalcy returns and things fall in place for us to hit the growth trajectory, we will reassess and be in a better position to talk about the timing of the IPO," Mazumdar-Shaw said in an interview.

Mazumdar-Shaw, who is also the chairperson of Biocon Ltd, said the company’s facilities are not running at full strength due to pandemic-related safety measures, and procurement of some raw materials and shipments of finished products is also proving to be a challenge. Exacerbating the issue is the fact that lower patient footfalls at hospitals has also led to a slump in demand.

“All these issues have cumulatively dampened our ability to achieve our aspirational billion-dollar revenue target by FY22," she said.

The challenges thrown up by the pandemic have reflected on Biocon’s revenue from biosimilars and other biological products, which have grown by 11% year-on-year to 7.69 billion in the December quarter. The growth rate is much slower than the 31% it recorded in the corresponding period last year, the quarter just before the pandemic outbreak.

Along with the dampening of expectations over revenue in the coming financial year, the fall in Biocon Biologics’ performance has also temporarily disrupted the company’s timeline for an IPO.

For now, Mazumdar-Shaw said the company has enough funds to take care of its capital requirement in the near term after raising $330 million from private equity investments, which she said will “allow us to be flexible with our IPO timelines".

“There are some regulatory approvals and growth triggers lined up ahead of us, which are important events for driving our valuations and thus determining the time of the Biocon Biologics IPO," she said.

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