Biocon, a Rs.2,425 crore plus biotechnology company from Bengaluru, has posted satisfactory financial performance during the first quarter ended June 2013 and its consolidated net profit increased by 18.7 per cent to Rs.93.50 crore from Rs.78.80 crore in the corresponding period of last year. The consolidated net sales went by 21.7 per cent to Rs.694.76 crore from Rs.570.86 crore. Its EBDITA also moved up strongly by 25.9 per cent to Rs.174.52 crore from Rs.138.62 crore.
With better performance, Biocon scrip moved up by 4.2 per cent to Rs.312 on Bombay Stock Exchange today in the morning session.
Kiran Mazumdar-Shaw, chairman and managing director, said, “We are pleased to report a strong set of numbers of for Q1 FY14. The new organization structure has enabled us to deliver superior results with the core business performing strongly. Biocon's insulins business continues to do well, riding on the back of an increased geographical footprint in the emerging markets. The India-focused branded formulations vertical as well as our research services continue to grow at a steady pace. Our research programmes are making good progress. I am very excited about the upcoming launch of Alzumab, our second novel biologic. We look forward to bringing this first-in-class molecule for the treatment of psoriasis to the Indian market. The current fiscal will see us consolidate our various initiatives whilst we continue our investments in our biosimilars and novel molecules, to deliver a sustainable growth platform.”
Biocon's revenue from pharma segment increased by 20.3 per cent to Rs.543.41 crore from Rs.451.73 crore in the similar period of last year. Its revenue from contract research and manufacturing services went up by 22.2 per cent to Rs.160.34 crore from Rs.131.25 crore. Its income from biopharmaceuticals increased by 21 per cent to Rs.439 crore and that of domestic branded formulations increased by 17 per cent to Rs.101 crore. Revenues from research services (Syngene and Clinigene) increased by 26 per cent to Rs.155 crore. Its R&D expenditure touched to Rs.43 crore as against Rs.36 crore in the last period, a growth of 21 per cent.
The small molecules portfolio delivered a strong performance this quarter,led by immunosuppressants and specialty molecules like Fidaxomicin and Orlistat. The statins portfolio has remained stable, despite the changing market dynamics. The biosimilars portfolio delivered a healthy growth this quarter, as the company enhanced its geographic footprint in generic rh-insulin to more than 45 countries. The company enhanced its insulin manufacturing capacity and the plant is now back on stream.
Commenting on the biopharma business performance, Arun Chandavarkar, COO, said, “The sustained growth in our small molecules business reflects the robustness of our diversified and differentiated portfolio. Commercialization of insulin in emerging markets continues to be a significant growth driver and we are on track with our capacity expansions to address these medium term opportunities. WE remain focused on developing our pipeline products that address significant global opportunities across our business segments to sustain our long term growth.”
The company is well set to launch its second novel biologic, Alzumab in the Indian market during second quarter. This product is its first-in-class anti-CD6 monoclonal antibody, which was approved by DCGI for psoriasis earlier this year. Further, the company has firmed up the overall framework for the first set of trials for its oral insulin candidate, IN-105.