No impact on industry of move to withdraw Rs 2000 notes from circulation: Biocon MD Siddharth Mittal

New Delhi [India], May 24 : There will be no impact of RBI's decision to withdraw Rs 2000 currency notes from circulation on businesses and transactions in the pharma industry, said Siddharth Mittal, MD and CEO of Biocon and noted that there has been no panic reaction among people.
Mittal told ANI in an interview that a large portion of retail sales in pharmacies happen through digital modes.
"As an industry, quite honestly, I particularly don't feel there would be any impact on businesses and transactions, including retails. A large portion of retail sales through pharmacies happens through digital modes (using UPI). Drug industry that way is insulated from financial pressures. Anyway, RBI also said the Rs 2000 will continue to be legal tender," he said.
"I have not seen any panic-like situation so far and hence I feel it will not impact our industry," he added.
The RBI has said that Rs 2000 currency notes can be exchanged at bank counters till September 30.
Biocon is largely an exports-focused pharma firm with US and China among its key markets.
Biocon has three business segments, Biosimilars, Research Services, and Generics, and all of them are, on a consolidated level, growing at a decent rate.
Asked about the overall drugs industry in India, he said it is doing well as volumes are growing with rising disposable income among citizens, which is translating into higher disease diagnosis and screening. Accessibility, he said, is one of the other factors for pharma industry's growth.
About its acquisition of Viatris, he said the transition will be completed this year and the company has hired human resources for leadership roles.
Biocon Biologics Ltd, a subsidiary of Biocon Ltd, last year successfully completed its USD 3 billion acquisition of the global biosimilars business of its partner Viatris Inc. The acquisition will provide Biocon Biologics with direct commercial capabilities and supporting infrastructure in the advanced markets and several emerging markets.
"The transition to Viatris will be completed this year and we have already hired the leadership team here. As soon as the transition is done, we will be able to grow the business with our existing relations," Mittal said.
Asked how Biocon sees China as a market, he said the company has already filed applications for a few molecules in China and also is in talks with local companies for partnerships to sell drugs.
"At Biocon, we have already filed for a few molecules in China. Besides, we are also in talks with local companies for partnerships to sell our drugs there. And we see a very big market opportunity in China," Mittal said.
"If we see, China is the biggest pharmaceutical market after the US. We are seeing many changes in the China market which earlier was a very strong retail branded market. Due to government procurement, it is going very much towards the tender system. And, the Chinese FDA (the Chinese drug regulator), they are focused on raising their standard as far as the drugs sold in that country are concerned. The regulator wants to bring it in line with the global standards."
Indian companies, who are selling drugs in the US and EU markets on a large scale for many years now, see an opportunity in the Chinese market as well, he added.
Separately, Biocon on Wednesday announced its consolidated financial results for the fourth quarter and the fiscal year that ended on March 31, 2023.
The company's revenue from operations during the January-March quarter and for the entire 2022-23 was Rs 3774 and Rs 11174 crore, up 57 per cent and 37 per cent, respectively, on a yearly basis.
Its consolidated net profits for the quarter and the full fiscal year were Rs 313 crore and Rs 463 crore, up 31 per cent and down 29, respectively.
Along with the earnings, the Board of Directors has recommended a final dividend of Rs 1.50 per share for the financial year that ended March 31, 2023. A dividend is a reward that companies often provide to their shareholders, though not mandatory, from a portion of their earnings.