Biocon, a Rs. 2,850 crore plus fully integrated, innovation-led, emerging global biopharmaceutical company from Bengaluru, has posted net profit growth of 9.6 per cent for the first quarter ended June 2014 to Rs. 103 crore from Rs. 94 crore in the corresponding period of last year. Its net sales of biopharmaceuticals improved marginally by 1.3 per cent to Rs. 547 crore from Rs. 540 crore. EPS moved up to Rs. 5.2 for the quarter from Rs. 4.7 in the last period.
The biopharma segment was under pressure due to external factors including the ongoing geopolitical conflicts in the MENA region. The sales of biopharma division declined slightly by 0.7 per cent to Rs. 436 crore from Rs. 439 crore. The company filed its first ANDAs, targeting the US generics market. The company initiated global phase III trials for its biosimilar glargine. Its upcoming insulin facility in Malaysia continues to progress well and likely to go on stream in the second half of this fiscal.
The sales Indian branded formulation improved by 9.9 per cent to Rs. 111 crore from Rs. 101 crore and contract research revenue up by 11.7 per cent to Rs. 172 crore from Rs. 154 crore. The company reorganized certain divisions within branded formulations. The reorganization largely focuses around the cardiology and diabetes divisions to drive synergies around key anchor brands and optimization of product portfolios with a focus on profitability.
Biocon has initiated trials for its oral insulin molecule, IN-105, and currently engaged in discussions to out-licensing its novel anti-CD6 molecule, Itolizumab. Its research services segment grew by 12 per cent registering revenues of Rs. 172 crore. The company extended research collaboration with Bristol Myers Squibb, for 5 years.
Commenting on the quarterly performance and highlights, chairman and managing director, Kiran Mazumdar-Shaw stated, “Our revenue growth this quarter has been muted. Our business performance reflects the challenges that we are temporarily facing in some of our key markets especially in the Middle East. We are working towards diversifying our regional dependencies to diminish the impact of such externalities. However, we have sustained our operating margins and profits despite increase in costs. Our business profitability has remained intact indicating the benefits of portfolio optimization. Our development pipeline across biosimilars and novel candidates continues to progress well. We remain committed towards improving our performance in the coming quarters”.
The company is optimistic about the outlook and pointed out that the inherent growth drivers for business remain intact and will play out over the course of this year. The progress in development pipeline (across biosimilars and novel molecules) will help some of its molecules to enter the clinic. However, these milestones are subject to various external dynamics including the business and clinical trial environment in the country.
Peter Bains, director Syngene International, said, “We have made a steady start to the new fiscal, and will build upon this performance during the course of the year. We have been investing in capacity expansions, some of which will come into play in the latter half of FY15. The new capacities will help up expand our order book and build growth momentum. A key milestone this quarter was he extension of our partnership with Bristol Myers Squibb until the year 2020.”
Meanwhile, Biocon has appointed Siddharth Mittal, president – finance as chief financial officer with effective from August 1, 2014.