Biocon Ltd, a Rs 2,300 crore plus leading biotechnology company, has posted satisfactory growth in top line as well as bottom line during the year ended March 2010 on account of strong growth from diabetology, oncology and cardiology segments. The company's net profit before exceptional items increased by 22 per cent to Rs 302.81 crore from Rs 248.16 crore in the previous year. However, after exceptional items, its net profit has taken a jump of 215 per cent to Rs 293.26 crore from Rs 93.12 crore. With smart improvement in profits, the earning per share moved up sharply to Rs 15.08 from Rs 4.83 in the previous year.
The company management recommended equity dividend of 70 per cent per share of Rs 5 each. Biocon scrip improved to Rs 301.25 from its previous day's close of Rs 293.80 on BSE. During last year ended March 2009, it provided Rs 147.19 crore for exceptional items in respect of mark to market losses as against nil in the year 2009-10.
The company's consolidated net sales increased by 47.2 per cent to Rs 2367.82 crore from Rs 1608.67 crore in the previous year. Its sales of pharma segment improved by 50.6 per cent to Rs 2087.10 crore from Rs 1385.61 crore and that from contract research and manufacturing services (CRAMS) improved by 28.9 per cent to Rs 304.03 crore from Rs 235.94 crore.
Kiran Mazumdar-Shaw, chairman and managing director, said, “I am delighted that Biocon has delivered a strong performance this fiscal. I am pleased that all segments of our businesses have demonstrated robust growth. We are confident of sustaining good growth momentum in the years ahead given our increasingly differentiated profile enhanced by key global partnerships. This offers us large and lucrative opportunities in both emerging and developed markets. Biocon sees itself as one of the few Asian biopharma companies that can emerge as an innovator and simultaneously develop a leadership position in biosimilars.”
Biocon's Insulins segment grew by 11 per cent growth during 2009-10 with growing momentum in emerging market sales. It has registered vial and cartridge in around 40 countries and it entered several new markets like Brazil and Chile among others. Its immunosuppressant segment recorded sales growth of 28 per cent despite pricing pressures. Tacrolimus API sales also added to this momentum. The sales from statins division went up by 26 per cent on account of enhanced capacity and improved productivity. Simvastatin remained largest product by sales but Atrovastatin and Rosuvastatin are expected to add significantly in coming years.
The company's German subsidiary, Axicorp, on an adjusted basis, improved its sales by 55 per cent. This growth primarily came from more efficient sourcing of products for its business, a restructuring of its sales force and winning the AOK, BKK and DAK tenders for several generics.
Biocon's domestic branded formulations business achieved sales growth of 36 per cent during 2009-10. The sales of diabetology division increased by 24 per cent, oncology segment by 59 per cent with brand Abraxane and BIOMAB EGFR as key contributors and cardiology segment by 26 per cent. The company's nephrology division recorded strong growth of 59 per cent with ERYPRO achieving growth of 50 per cent in an EPO market. The company is now entering the critical care ICU segment with the introduction of a newly formed comprehensive care division.
Biocon's R&D activities are moving ahead and Syngene is best positioned to garner a good chunk of this market. Goutam Das, COO of Syngene, said, “We have consolidated our position as India's foremost custom research organization and registered a 24 per cent growth during 2009-10 in revenues. It has demonstrated its ability to successfully manage large relationships and has now confidently moved into integrated drug discovery services.”
Dr Harish Iyer, head of R&D, said, “ We have made significant progress in our partnership with Mylan for developing biosmilars for the global markets. Our novel pipeline has achieved significant milestones spearheaded by a key IND filling with the US FDA for our oral insulin program IN105.”
During 2009-10, Biocon has acquired 49 per cent stake of Cuban partner CIMAB SA in its joint venture Bicon Biopharmaceuticals through its subsidiary. Syngene International, a 100 per cent subsidiary, has partnered with Endo Pharmaceuticals to develop a novel biological therapeutic molecule against cancer. Biocon also signed MoU with Malaysia's Biotechnology Corpn to explore collaboration and potential investment in Malaysia's biotechnology industry.