Biological E Limited is a major Indian vaccine and pharmaceutical company established in 1953. It supplies vaccines and drugs to UN agencies and the Indian government. The company is currently led by Mahima Datla as Managing Director following a legal battle over ownership between Mahima and her mother Renuka Datla after the death of the founder. Biological E focuses on vaccine development and production and has expanded its product portfolio and manufacturing facilities. It supplies over 60% of India's pediatric vaccines and has grown significantly in recent years through large export contracts. However, ongoing family disputes and a commitment to fixed pricing could impact future financial performance.

1. BIOLOGICAL E LIMITED
Company Report: India-Pharma-Unlisted
26 SEPTEMBER 2015
www.indiabusinessreports.com
COMPANY BACKGROUND
Beginning
Biological E Limited, the first private sector biological
products company in India and the first
pharmaceuticals company in South India was
established in 1953.
Originally incorporated as Biological Products Private
Limited, and launched by Late Dr. Vijay Kumar Datla,
Biological E (BE) today, is a significant leader in the
world of vaccine market.
BE supplies several essential and lifesaving Vaccines
and Pharmaceuticals to UN Agencies viz. UNICEF, Pan
American Health Organisations, other global markets
and within India to Central and State Government
Hospitals, Public Sector Undertakings, the Indian
Armed Forces and the domestic retail market.
The company claims that every child in India at one
time or other has been immunised by BE.
Dr. Vijay Kumar Datla, the founding Chairman and
Managing Director of the Company expired on 20th
March, 2013. Ms Mahima Datla was appointed as
Managing Director of the Company on 11th April 2013
Promoters
After the death of Dr Datla, there is a bit of conflict
going on amongst his wife and daughters about the
control of the company. The family is locked in a legal
battle.
At the time of Vijay Kumar's death, his wife Renuka
was an executive director in the company. The
problem started when her three daughters, Mahima,
Poornima and Indira, started making claims over the
ownership of the company. GV Rao, a founding
director and old-timer, then appointed them directors
of the company and, at a board meeting, showed a
will allegedly written by Vijay Kumar and gave
ownership of 80 per cent of the company's shares,
Board of Directors
Name Designation
Dr Renuka Datla CMD
Mahima Datla Director
Indira P. Raju Director
Purnima Mantena Director
*
Address
18/1 & 3, Azamabad
Hyderabad
Telangana-500020
91-040-30213999
Financial Summary
Year ending Mar 31 FY12 FY13 FY14
Net Sales (Rs mn) 2,197 4,743 6,977
EBITDA (Rs mn) 94 1,746 3,534
EBITDA Margin (%) 4% 37% 51%
PAT (Rs mn) -140 969 2,377
Net worth (Rs mn) 687 1,656 4,033
Debt (Rs mn) - - 548
Sales Growth (%) 115.9% 47.1%
PAT Growth (%) 145.4%
ROE (%) 58.5% 58.9%
ROCE (%)
D/E (x) 0.14
Auditor
Brahmayya & Co
To get a copy* of this report with full content, write to reports@indiabusinessreports.com
*free for students, academicians, and researchers

2. India-Pharma-Unlisted Biological E 26 Sep’15
www.indiabusinessreports.com 2
which were till then in the name of her father, to
Mahima. However, Renuka, too, came out with a will
and claimed ownership of 80 per cent of the shares.
The wife then wanted the court to declare as illegal
the board meetings and other meetings allegedly
convened by G V Rao and the consequent transfer of
shares in the name of Mahima.
In May this year, the Supreme Court in India direct the
family to a mediator after Dr Renuka Datla and her
three daughters filed an appeal against a high court
order directing them to work together.
The judge in his order made the mother and her three
daughters as equal partners of the shares only for the
purpose of running the company. They are not
allowed to transfer the shares to third parties in any
manner. While the mother will continue as ED, the
three daughters will continue as directors. Renuka will
also function as the CMD.
In case of differences in the day-to-day affairs, the
mother has to approach the company law board for
adjudication and advice. The court also ruled that the
board shall not take any major policy decisions unless
there is unanimity among all its members and then,
too, can do so only with the prior approval of the
company law board. This ad hoc board will continue
till the civil court gives its findings on the tussle.
Further developments are awaited on the mediation.
GV Rao is no more a director of the company.
BUSINESS HIGHLIGHTS
Vaccines
Vaccine division is the main business area of BE. The
company’s website says: As the leading supplier to the
Central Government, State Governments and all allied
institutions of the government, including the army,
municipal corporations and public sector institutions,
the vaccine division is a valuable and crucial section of
BE.
BE claims to be central to the Government of India's
Universal Immunisation Programme. BE supplies more
than 60% of its paediatric vaccines to the Government
of India.
In the last decade alone, BE has supplied around 1.2
billion doses of vaccines towards the immunisation
needs of India. In FY14, it supplied 135 million doses.
BE has extended its vaccine portfolio, invested in
cGMP manufacturing facilities and built new state-of-
the-art facilities and a modern infrastructure to ensure
future growth and the development of new products.
We also have a number of new products at the clinical
development stage.
Pharmaceutical Products
Biological E Limited also has presence in
pharmaceutical products. BE is ranked 57th by ORG in
terms of its prescription market share. Its has
presence in paediatrics, geriatrics and other
therapeutic (curative) offerings.
BE’s target market is primarily India and Nepal. It is
also beginning to target international markets.
Biological E Limited's domestic market network is
serviced by 23 Sales Offices and 25 Depots located
around the country. Its sales force covers 72,000
doctors all over India
The International Division of BE, headed by a Senior
Vice President, serves as a window to promote it's
products globally.
Institutional Sales
Apart from domestic retail marketing, Biological E
Limited also supplies most of the essential and
lifesaving drugs to various Central Government
Hospitals, State Government Hospitals, Public Sector
Undertakings and the Armed Forces.
Among the most sought after products are Anti Snake
Venom, Anti-Tetanus Serum, Tetanus Toxoid, DPT, DT,
Heparin and the Coscopin Range.
Some institutions it serves:
Director of Health Services (DHS):
Each State Government runs health schemes under
the control or guidance of the Director of Health
Services.

3. India-Pharma-Unlisted Biological E 26 Sep’15
www.indiabusinessreports.com 3
Government Medical Stores Depots (GMSD):
Located at Mumbai, Kolkata, Guwahati, Chennai,
Hyderabad, Delhi and Karnal, they cater to the
requirements of many of the Government/Semi
Government Institutions like Medical Colleges, Civil
Hospitals, CGHS Supplies and Public Sector Units.
Railways:
The Railways is the single largest Government
undertaking employing over 50,00,000 people with
well equipped Hospitals.
Employee State Insurance Corporation (ESIC), Delhi:
All private industry workers earning a salary below
Rs.7500/ - per month are covered by the ESI.
Director General of Armed Forces Medical Stores
(D.G.A.F.M.S.):
They procure medical supplies for all the Armed
Forces Medical Stores Depots.
Municipal Corporation Hospitals/Dispensaries:
These are located in every town and city in the
country.
BE also caters to the needs of the following
institutions:
 Police Line Dispensaries and Dispensaries
attached to various jails
 University Health Centres attached to each
University
 State Road Transport Corporations
 Development of new technologies
 Electricity Boards in every state
 Bharat Heavy Electricals Ltd. (BHEL) whose
units are located at Bhopal, Jhansi, Hardwar,
Tiruchirapalli, Bangalore and Hyderabad
 The Steel Authority of India Ltd with units at
Bhilai, Bokaro, Rourkela, Salem, Ranchi,
Jamshedpur (Telco), Durgapur and
Vishakapatnam
 Oil and Natural Gas Commission (ONGC)
Medical units
 Hindustan Aeronautics Limited
 Currency Note Press
 Coal Fields (CCL, WCL, SECL, NCL)
APIs
In 2002 a strategic decision was taken to focus on API
products that were used in Biological E Limited's
captive and in-house range of formulations. Currently
BE offers a few proven products from Alkaloids and
Glandular segments.
BE has a compact and world-class production facility,
to manufacture APIs. This facility has been set up, with
a plan to go for further expansion of production and
development capabilities, to cater to the future needs
of global customers.
R&D
BE’s R&D labs located at Azamabad and in Shameerpet
are actively engaged in developing, standardizing and
developing platform for new vaccines for human use.
Our R&D center is well equipped with all basic and
modern requirements for developing manufacturing
process, analytical methods for analysis of the
experimental vaccines. R&D work for the development
of Combination Vaccine formulations and
improvement of Test Methods.
The Company is currently pursuing the following
programs among other developmental activities:
 Dengue Vaccine
 Human papilloma virus vaccine (VLP vaccine)
 Pneumococcal Conjugate Vaccine
 Carrier Protein CRM197 for conjugate vaccines
BE sharply hiked R&D spends in FY14. From 1.4% of
sales in FY13, R&D spends went to 4.6% of sales in
FY14. This amount to Rs 318mn.
Future focus areas for R&D, as listed in FY14 Directors’
Report are:
1. Meningitis vaccine: - The development of a N.
meningitis (A, C, W and Y) vaccine is in progress to
optimize the process for purification and conjugation
of the pure polysaccharide with carrier protein
(tetanus toxoid) with improved yields and stable
product.
2. Acellular Pertussis vaccine containing recombinant
pertussis toxin and pertactin and purified Filamentous
Hem agglutinin antigen is currently developed for
optimizing antigen content expression yields.
3. BE is also considering other proposals to develop
recombinant vaccine containing purified protein
antigens linked to immuno-modulator carrier protein
co-expressed in high expression vector system.

4. India-Pharma-Unlisted Biological E 26 Sep’15
www.indiabusinessreports.com 4
Biological E. Limited has productive partnerships with
several well respected and renowned institutions and
Public Health Services across the world for joint
development of new Products. Some of these
collaborations are:-
1. lntercell AG, Vienna, Austria for the development of
cell cultured based purified inactivated japanese
Encephalitis UE) Vaccine.
2. National Institute of Health (NIH), USA, for
development of live tetravalent Dengue vaccine and
live Tetravalent Rotavirus Vaccine.
3. Netherland Vaccine Institute (NVI) Netherlands, for
development and manufacture of
Haemophillusinfluenzae Type B vaccine.
4. University of Hyderabad, Andhra Pradesh, India, for
development of CRM 197, a mutant diphtheria toxin.
5. University of Hyderabad, Andhra Pradesh, India, for
development of Human Papilloma Virus types 16 & 18.
6. Defense Institute of Physical & Allied Sciences
(DIPAS}, New Delhi, India, for development of Heat
shock protein or their derivative based vaccines for
treating infectious and auto-immune diseases.
Biological E's R&D unit at Ranga Reddy is
implementing an expansion program worth Rs 30
crore.
$200m order in Jun’13
BE entered into a 10-year supply agreement worth
$200 million (around Rs 1,200 crore ) with Vacsera, an
Egyptian state-owned vaccine company, to supply 8
million doses of liquid pentavalent each year.
Pentavalent is a combination paediatric vaccine, that
immunizes children against diphtheria, pertussis,
tetanus, hepatitis-B and HiB.
“Under the agreement, Biological E’s pentavalent
vaccine shall be procured exclusively by Vacsera,”
Biological E statement said.
“The deal can be extended further post mutual
discussion and agreement,” the company said.
Biological E’s Liquid Pentavalent vaccine was
prequalified by WHO (World Health Organization) in
2012 and has been exported to several countries.
GSK JV in Jan 2013
The company entered into a five-year supply
arrangement with Global Alliance for Vaccination and
Immunization for its inactivated polio virus containing
hexavalent vaccine under development with
GlaxoSmithKline Plc in January 2013.
The companies also intend to develop new products,
via early-stage research and development of a six-in-
one combination paediatric vaccine to help protect
children in India and other developing markets.
The JV was expected to enter phase-1 trial in two
years. GSK was to combine its injectable polio vaccine
and Biological E was to combine its pentavalent
vaccine of tetanus, diphtheria, whooping cough,
hepatitis B, haemophilus influenzae type B. Both the
companies stressed that, if successful, this will be the
first of its kind vaccine developed for India and other
developing markets.
Novartis deal in July’13
Novartis, the Switzerland-based healthcare solutions
company, announced a development and licensing
agreement with Biological E Limited to deliver
vaccines against typhoid and paratyphoid fevers in
July’13.
Under the license, the Novartis Vaccines Institute for
Global Health was to transfer technology to BE, which
will have responsibility for manufacturing, further
clinical development, approval and distribution of the
Vi-CRM197 typhoid vaccine. The vaccine successfully
achieved proof of concept in a Phase II trial.
MANUFACTURING FACILITIES
BE facility at Genome Valley, Hyderabad is one of the
largest biotech manufacturing sites in Asia. It has
invested to introduce two new processing suites and
expand current production and product testing
capabilities for a number of products.
FINANCIAL PERFORMANCE
After a stumble in FY12, the company recovered will
to post sharp growth in FY13 and FY14.
FY14 was a spectacular year, with EBITDA margin
expanding sharply to 51%, from 37% in FY13 and just
4% in FY12. Sales have grown sharply in these two
years as well.
Export was the growth driver in FY14. Export revenues
expanded 96% as against just 1% growth in domestic

5. India-Pharma-Unlisted Biological E 26 Sep’15
www.indiabusinessreports.com 5
revenue. In FY14, exports as a share of revenue
reached 65%, as compared to 16% in FY12.
This exports growth could be driven by the big
contracts the company signed in 2013.
5 year fixed price commitment
The margins may be impacted in FY15 or later, as BE
has agreed to fixed pricing for 5 years for a key
contract.
It has offered a five-year price commitment to GAVI
(Global Alliance for Vaccines and Immunisation)
graduated countries.
“...To further our support to GAVI's mission, I am
pleased to announce Biological E's offer of a 5-year
price commitment to GAVI graduated countries. This
commitment aims to ensure that graduated countries
will have access to affordable prices that are
comparable to GAVI-eligible ones,” Mahima Datla,
managing director of BE said while addressing a
conference in Berlin recently, according to a press
release.
Biological E had earlier reduced the price of their
Pentavalent vaccine by 30 per cent following a joint
decision taken by the company along with Gates
Foundation, GAVI and Unicef, the statement said.
FUNDING AND FUTURE PLANS

6. India-Pharma-Unlisted Biological E 26 Sep’15
www.indiabusinessreports.com 6
FINANCIAL DETAILS
P&L
(Rs crore) FY11 FY12 FY13 FY14
Net Sales
RM
Power&F
Salary
Other OPC
G&A
Sales&D
Misc
Total Exp
PBDIT
Other Inc
Int
Dep
PBT
PAT
Balance Sheet
(Rs crore) FY11 FY12 FY13 FY14
Equity
Networth
Total Debt
Total Liabilities
Gross Block
Less: Accumulated
Depreciation
Net Block
CWIP
Total Fixed Assets
Investments
Net Current Assets
Deferred Tax
Total Assets

7. India-Pharma-Unlisted Biological E 26 Sep’15
www.indiabusinessreports.com 7
Ratios
FY11 FY12 FY13 FY14
Growth (%)
Sales
PBDIT
PBT
PAT
Margins (%)
PBDIT
PAT
Capital Efficiency (%)
ROE
ROCE
Leverage
D/E (x)
Debt/Ebitda
Working Capital (days)
Inventory t/o
Debtors t/o
Payable t/o
WC Cycle
About India Business Reports
India Business Reports (IBR) is an initiative of experienced professionals with comprehensive experience across wide domains – Research, Investment Banking,
Private Equity Funding, Consulting, Branding and Marketing. The single minded objective at IBR is to generate insightful reports based on hard facts. Our endeavour
is to search for a Big Idea, among seemingly un-connected data points, which has significant strategic relevance. So be it India entry strategies, growth strategies,
M&A opportunities or private equity investments, our reports can become a powerful tool in many ways.
Our content and expertise is relevant not only for the financial fraternity, but also global MNCs looking to do business with India, and Indian companies looking to
fine tune their growth strategies.
Disclaimer
This note is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its
accuracy or completeness guaranteed. The content in this note is solely for informational purpose and is not a solicitation of offer to buy or sell or subscribe for
securities or other financial instruments. Nothing in this note constitutes investment, legal, accounting and tax advice. India Business Reports or its owner-partners
accept no liabilities for any loss or damage of any kind arising out of the use of this note.
Contact
reports@indiabusinessreports.com