Biocon, a Bangalore based India's largest biotechnology company, has posted satisfactory performance during the year ended March 2011 and decided to divest its holding in AxiCorp GmbH, a German subsidiary. The company's consolidated net profit for the year 2010-11 increased by 25.3 per cent to Rs. 367.52 core from Rs.293.25 crore in the previous year. Its EBDITA also moved up by 23.8 per cent to Rs.629.64 core from Rs.508.51 crore. The board of directors recommended final dividend of 60 per cent, making the total dividend of 90 per cent (Rs.4.50 per share) for the year 2010-11.
The consolidated net sales went up by 17 per cent to Rs.2,771 crore from Rs.2,368 crore. Its pharmaceutical sales surged by 17.5 per cent to Rs.2,453 crore from Rs.2,087 crore on the back of strong growth in the sales of immunosuppressants, statins and the branded formulations segments. Its sales from Contract Research & Manufacturing Services (CRAMS) moved up by 13.4 per cent to Rs.345 crore from Rs.304 crore.
The company now decided to divest its stake in its German subsidiary, AxiCorp GmbH, to the existing group of promoter shareholders. This divestment is in line with the objectives of he global alliance wherein the synergies derived from global development and investments can be leveraged for the German market as well. This will not impact its on-going development of biosimilar insulin and analogs in Europe and elsewhere in collaboration with Pfizer. Biocon had entered into a global alliance with Pfizer in October 2010 for commercializing biosimilar insulin and insulin analogs.
Kiran Mazumdar-Shaw, chairman and managing director of Biocon, said, “ FY11 has delivered strong multi-sectoral growth, Emerging markets have realized significant and sustained growth for our APIs, whilst our branded formulations have scripted business success in the Indian market place. Licensing income from Pfizer and others has contributed materially to profit generation this fiscal. Our research services business supported by Syngene and Clinigene have signalled a turn around. We are confident this will drive robust profitability next fiscal.”
Dr Arun Chandavarkar, chief operating officer, said, “ We have, last fiscal, successfully leveraged our unique portfolio of differentiated products to strike key global strategic partnerships and deliver robust growth through product sales and licensing. Out immediate focus is to shepherd these products through the complex development path to global approval and scale up our operations in Indian and abroad. We believe that our risk balanced approach to innovation and growth will help us create sustainable competitive advantages for us and our partners.”
The six verticals in branded formulations, namely, diabetology, oncotherapeutics, nephrology, cardiology, dermatology and comprehensive care, have posted a combined YoY growth of 36 per cent. Diabetology division recorded the highest growth in the last three years and oncology division posted a strong growth of 41 per cent. This was followed by cardiology segment growth of 20 per cent.
The company's standalone net sales increased by 31.7 per cent to Rs.1532 crore from Rs.1163 core in the previous year. Its standalone net profit jumped by 84.9 per cent to Rs.459.25 crore from Rs.248.36 crore.