Concord Biotech Limited: history, ownership, mission, how it works & makes money

A Brief History of Concord Biotech Limited

Concord Biotech Limited, an India-based biotechnology company, was established in **2000**. It focuses on the development and manufacture of biopharmaceuticals, particularly in the area of recombinant proteins and biosimilars. The company has earned a reputation for its R&D capabilities and has made significant investments in state-of-the-art manufacturing facilities.

In **2021**, Concord Biotech went public with an Initial Public Offering (IPO), raising approximately **₹1,500 crore** (around **$200 million**) to enhance its research and development, expand manufacturing capabilities, and fuel growth initiatives.

The company operates two manufacturing facilities located in Ahmedabad, India, which are compliant with regulatory standards of major global markets including the US FDA, EMA, and WHO. Concord's flagship products include biosimilars in oncology, nephrology, and autoimmune diseases.

As of **September 2023**, Concord Biotech reported a revenue of **₹1,335 crore** (approximately **$178 million**) for the fiscal year ending March 2023. This represented a growth of **25%** year-over-year from **₹1,068 crore** in the previous fiscal year.

The company's net profit for the fiscal year 2023 stood at **₹385 crore** (approximately **$51 million**), reflecting an increase of **30%** compared to **₹296 crore** in FY2022. The EBITDA margin for this financial year was reported at **40%**.

Concord’s expansion strategy is underscored by recent collaborations and partnerships. In **2022**, the company entered into a strategic partnership with a leading European pharmaceutical company to co-develop a biosimilar product, further solidifying its presence in international markets.

In addition to its biosimilars portfolio, Concord Biotech is also investing in the development of new APIs (Active Pharmaceutical Ingredients). As of mid-2023, the R&D expenditure accounted for approximately **10%** of total revenues, highlighting the company’s commitment to innovation.

Concord Biotech’s stock performance since the IPO has shown resilience. The share price has increased approximately **50%** from its listing price of **₹741** to around **₹1,111** as of **September 2023**. The market capitalization of the company is approximately **₹21,000 crore** (around **$2.8 billion**).

With a workforce of over **1,000 employees**, the company emphasizes talent development and training, regularly updating its operational protocols to align with global best practices. This focus on human capital has proven beneficial, as employee productivity has increased, correlating with the financial growth observed in recent years.

A Who Owns Concord Biotech Limited

Concord Biotech Limited is a publicly traded pharmaceutical company based in India, listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). As of October 2023, various shareholders hold ownership stakes in the company, including institutional investors, individual shareholders, and company insiders.

As per the latest data from the company's filings and stock exchange disclosures, the ownership structure is as follows:

Among the promoters, the key individuals include:

As of September 2023, Concord Biotech's market capitalization stood at approximately ₹15,000 crores (around $1.8 billion), reflecting a significant interest from both institutional and retail investors. The company's share price has experienced fluctuations, with a 52-week range of ₹650 - ₹900.

Key financial metrics that indicate ownership sentiment include:

The significant promoter ownership reflects confidence in the company's strategic direction and long-term growth potential, while the institutional investment signals strong market approval. Tracking these stakes provides insights into the company’s governance and operational decisions, as well as its responsiveness to market trends.

Concord Biotech Limited Mission Statement

Concord Biotech Limited focuses on developing, manufacturing, and marketing high-quality biopharmaceuticals, including active pharmaceutical ingredients (APIs) and formulations. Their mission emphasizes innovation, customer satisfaction, and sustainable practices. Concord aims to enhance human well-being by offering affordable and accessible medicines.

As of September 2023, Concord Biotech Limited reported a revenue of ₹1,344 crore for the fiscal year 2023, reflecting an increase from the previous year. The net profit for the same period reached ₹372 crore, showcasing a profit margin of approximately 27.7%. The company has maintained a consistent EBITDA margin, which stood at 39.5%.

The mission statement also highlights their commitment to research and development. Concord Biotech invests around 8-10% of its annual revenue in R&D, which amounted to approximately ₹107 crore for the fiscal year 2023. This investment aims to foster innovation in biopharmaceuticals, particularly in oncology and immunology.

Concord Biotech is also dedicated to expanding its global footprint. As of 2023, the company operates in over 70 countries, catering to diverse markets that include the European Union, North America, and Asia. Their strategic goal is to increase exports, targeting a growth rate of around 15-20% annually in international sales.

Furthermore, the company emphasizes sustainable development in its mission. In 2023, Concord Biotech achieved a reduction in carbon emissions by 12% compared to the previous year, contributing to its broader environmental goals. This aligns with their commitment to Corporate Social Responsibility (CSR) initiatives, which are funded by approximately 2.5% of net profit.

The commitment to quality is evident in their manufacturing processes, as Concord Biotech holds several certifications, including ISO 9001:2015 and ISO 14001, ensuring compliance with international standards for quality and environmental management.

In summary, Concord Biotech Limited's mission statement underlines its dedication to innovation, quality, and sustainability, all while achieving impressive financial performance and expanding its global presence.

How Concord Biotech Limited Works

Concord Biotech Limited is an India-based biopharmaceutical company, primarily engaged in the development and manufacturing of biologics and biosimilars. These are complex molecules produced from living cells, and the company focuses on a range of therapeutic areas, including oncology, immunology, and endocrinology.

As of the latest financial reports for the fiscal year ending March 31, 2023, Concord Biotech reported a revenue of ₹1,040 crores (approximately $139 million), reflecting a year-on-year growth of 12%. The company's EBITDA stood at ₹390 crores, yielding an EBITDA margin of 37.5%.

Concord holds a significant position in the biosimilars market with several approved products in its portfolio. It specializes in the development of monoclonal antibodies and has reported a robust pipeline of at least 9 biosimilars under various stages of development and regulatory approval.

The company operates several facilities, which include:

• Manufacturing Unit in Gujarat
• Research and Development Center in Ahmedabad
• Quality Assurance Labs

Concord has recently expanded its manufacturing capacity to meet increasing global demand, which includes investments of approximately ₹200 crores to enhance production capabilities for its antibody products.

In addition to biosimilars, Concord Biotech is also engaged in the production of active pharmaceutical ingredients (APIs), which are essential components in drug formulations. The company’s API business has shown steady growth, contributing around 30% of total revenues. Concord’s strategic alliances with major pharmaceutical firms further enhance its market presence and distribution capabilities.

The company's financial health reflects in its debt-to-equity ratio, which stood at 0.5 as of March 2023, indicating a balanced approach to leveraging its capital structure. The return on equity (ROE) for the fiscal year was around 14%, showcasing effective utilization of shareholder funds.

Concord’s commitment to innovation is supported by its substantial investment in R&D, which has averaged about 6% of revenue over the past three years, positioning them well in the competitive biotechnology landscape.

Furthermore, the company has established a solid international footprint, exporting products to over 40 countries. In FY 2023, exports accounted for approximately 45% of total sales, highlighting its global outreach and market penetration.

Overall, Concord Biotech Limited operates through a vertically integrated model, allowing for greater control over quality, costs, and supply chain efficiency, which is crucial in the biopharmaceutical sector.

How Concord Biotech Limited Makes Money

Concord Biotech Limited is a biopharmaceutical company based in India, primarily focused on the development and production of biopharmaceuticals. The company generates revenue through multiple streams, including the production of biosimilars, APIs (Active Pharmaceutical Ingredients), and generics. Understanding its financial structure is essential for analyzing how it makes money.

Revenue Streams

• Biosimilars: Concord is known for its robust biosimilars portfolio, which includes products like Trastuzumab and Rituximab. In FY 2022-23, revenue from biosimilars accounted for approximately 40% of total revenue.
• APIs: The company also produces APIs for various therapeutic areas. In the same fiscal year, API sales contributed around 35% to the total revenue.
• Generics: Concord has a growing generics segment, which constituted about 25% of total revenue in FY 2022-23.

Financial Performance

For the fiscal year ending March 31, 2023, Concord Biotech reported a total revenue of ₹1,700 crores, marking a growth of 18% year-over-year. The breakdown of revenue sources is detailed in the following table:

Cost Structure

The cost structure of Concord Biotech is also vital to understanding its profitability. For FY 2022-23, the total expenses were approximately ₹1,300 crores, which includes cost of goods sold (COGS), R&D, and administrative expenses. The major components are outlined below:

• Cost of Goods Sold (COGS): Approximately ₹800 crores, accounting for 61.5% of total expenses.
• Research and Development (R&D): Invested ₹300 crores, approximately 23.1% of total expenses, focusing on innovation and new product development.
• Administrative Expenses: Around ₹200 crores, or 15.4% of total expenses, covering overheads and operational costs.

Market Trends

The global biosimilars market is expected to grow substantially, with a projected CAGR of 22% from 2023 to 2030. Concord, with its established portfolio, is well-positioned to capitalize on this growth. The company has invested in expanding its manufacturing capabilities, which are critical for meeting increased demand.

Moreover, the increasing incidence of chronic diseases has further stimulated demand for affordable treatment options, where Concord's low-cost, high-quality biosimilars and APIs provide a competitive advantage.

Partnerships and Collaborations

Concord Biotech has engaged in several partnerships to enhance its market presence and expand its product offerings. Recent alliances with leading pharmaceutical companies have allowed Concord to diversify its product line and enter new markets, driving additional revenue streams.

As of the latest financial quarter, Concord reported a growth in international sales, particularly in the European and North American markets, further bolstering its overall financial performance.