Biocon, a Rs 3,000 crore plus innovation-led biopharmaceutical major, has posted strong growth in adjusted net profit during the second quarter ended September 2015 despite single digit growth in biopharmaceuticals sales. Its adjusted net profit increased sharply by 200 per cent to Rs.306 crore from Rs.102 crore in the corresponding quarter of last year and its EBITDA moved up by 18 per cent to Rs.222 crore from Rs.188 crore. Its EPS went to Rs.21.6 from Rs.10.3 in the last period.
Adjusted net profit touched to Rs.306 crore due to exceptional income of Rs.203 crore on account of IPO receipts adjustment for 11 per cent Syngene stake dilution and impairment charge for Itolizumab. Excluding exceptional income, its net profit improved marginally to Rs.103 crore from Rs.102 crore in the similar period of last year.
Its consolidated net sales of biopharma, branded formulations and research services increased by 11 per cent to Rs.828 crore from Rs.750 crore mainly due to significant growth in sales of contract research division. Its sales of biopharma increased only by 4 per cent to Rs.459 crore from Rs.442 crore and that of Indian branded formulations improved by 3 per cent to Rs.119 crore from Rs.116 crore. The sales through contract research improved sharply by 30 per cent to Rs.250 crore from Rs.192 crore.
Its biopharma business was affected due to slow off take of some of the APIs and capacity constraints and sales of branded formulations impacted due to inability to participate in some large institutional tender opportunities due to restrictions on the use of CMOs to meet these requirements, along with short supply of some key products. The branded formulations sales were largely driven by key brands in the metabolics and oncology divisions. The new facility at Bangalore will help to address the growing demand for disposable devices for diabetics around the world.
Its R&D expenditure went up sharply by 64 per cent to Rs.57 crore from Rs.35 crore in the same quarter of last year due to the clinical advancement of several biosimilars and novel programmes. Its four biosimilars programmes partnered with Mylan, have made good clinical progress. Patient recruitment for multi-centric global phase III clinical trials for pegfilgrastim and trastuzumab are nearing completion while the global phase III clinical trial for adalimumab is progressing well across multiple sites. The global phase I PK study for bevacizumab is approaching completion while the ROW focused phase III trial is advancing as per plan.
Kiran Mazumdar-Shaw, chairman and managing directors said, “It has been a landmark quarter for Biocon with the hugely successful listing of Syngene. The resounding oversubscription of the IPO has reflected the trust and confidence of the investor community in Syngene’s value proposition. We are extremely proud and excited to take Syngene to its next phase of growth as India’s only publicly listed research services company. For Q2FY16, Syngene reported a revenue growth of 30 per cent.”
She added, “It has been a stable performance for Biocon this quarter with several growth triggers on the horizon focusing on biosimilars in emerging markets. The clinical advancement of five of our biosimilars programmes has put us on track for regulatory filings for some of these in the US and Europe in FY17. The inauguration of our world-class manufacturing facility for a new generation insulin delivery device and the launch of BASALOG One, a high-end, ready-to-use insulin glargine disposable pen in India, widens our insulins offering to diabetics in India. Our renewed focus on key brands has improved profitability of our branded formulations business. We expect the clinical progress in biosimilars and novels to augur well for the company, going forward.”
Biocon commissioned its devices manufacturing facility in India to make patient-friendly disposable devices for the insulins portfolio. It also introduced Basalog One, ready-to-use, once-a-day insulin glargine disposable pen in India. The company acquired Vishakhapatnam based Acacia Lifesciences Pvt Ltd in October 2015.
For the first half ended September 2015, its consolidated net sales increased by 13 per cent to Rs.1,653 crore from Rs.1,468 crore in the corresponding period of last year. Its net profit moved up by 111 per cent to Rs.432 crore from Rs.205 crore, basically due to exceptional items of Rs.307 crore. EBIDTA moved up 21 per cent to Rs.458 crore. Its R&D expenditure increased by 62 per cent to Rs.107 crore from Rs.66 crore.