Biocon has posted lower net profit and sales during the first quarter ended June 2017. Its consolidated net profit declined sharply by 61.5 per cent to Rs.54.5 crore from Rs.141.4 crore in the corresponding period of last year. EBIDTA also declined by 19 per cent due to inclusion of fixed and operational costs related to Malaysia. Its net sales also declined by 17.5 per cent to Rs.574 crore from Rs.696 crore. Its other income declined by over 10 per cent to Rs.26 crore from Rs.29 crore. EPS for the quarter declined to Rs.0.92 from Rs.2.40 in the last period and the equity capital increased due to bonus shares in the ratio of 2:1 in June 2017. Equity capital increased to Rs.300 crore from Rs.100 crore.
The sales of small molecules declined by 17 per cent to Rs.363 crore from Rs.435 crore and that of branded formulations went down by 17 per cent to Rs.130 crore from Rs.158 crore. However, sales of biologics improved by 15 per cent to Rs.184 crore from Rs.161 crore. Similarly, income from research services improved by 6 per cent to Rs.291 crore from Rs.275 crore. Its R&D expenditure increased by 13 per cent to Rs.58 crore.
Kiran Mazumdar-Shaw, chairperson and MD, said, Our biologics business had a strong quarter led by insulin sales. Financial performance was muted largely due to a combination of factors: weakening of US$; GST impact; and inclusion of operational and fixed costs of Malaysia. Additionally, the YoY comparison was impacted by the one-time adjustment in Q1 FY17 related to IndAS migration. Our core operating margins, however were healthy at 29 per cent for Q1FY18. A major milestone this quarter was the US FDA Oncologic Drugs Advisory Committee (ODAC) recommendation for approval of our biosimilar trastuzumab. We also received regulatory approvals from the Indian regulator for our biosimilar bevacizumab.”
“The outlook for FY18 remains cautious as much depends on regulatory approvals and tender outcomes for our biosimilars in key emerging markets. However, we will endeavour to maintain healthy core operating margins, going forward.” she added.
Besides US FDA ODAC approval for biosimilar trastuzumab and DCGI's approval for biosimilar bevacizumab, Biocon received GMP compliance certification from France's ANSM for its biologics drug substance facility for manufacturing trastuzumab and pegfilgrastim.
Its insulins business improved during the first quarter due to increased traction in NAFTA and LATAM regions, as well as, sales in Malaysia under a government contract. The company expanded commercial footprint with the launch of insulin glargine in two new emerging markets in the AFMET region.
Biocon and Mylan presented new data from the insulin glargine clinical programme, including the INSTRIDE studies, at the American Diabetes Association's Scientific Session in San Diego. The Biocon-Mylan collaboration to co-develop a broad portfolio of biosimilar products for the global marketplace has made steady progress during the quarter.