Biocon Ltd achieved strong financial performance during the year ended March 2005. The company's net profit has taken a quantum jump of 42 per cent and touched to Rs 198 crore as against Rs 139 crore in the previous year. Its revenues moved up by 34 per cent to Rs 728 crore from Rs 542 crore. The operating profits reached at Rs 239 crore as compared to Rs 180 crore, registering a growth of 33 per cent over the previous year.

The earnings per share worked out to Rs 19.8 for the year. The Board of Directors recommended equity dividend of 40 per cent on equity share of Rs 2 each.

Revenues from the biopharmaceuticals business improve by 28 per cent to Rs 557 crore from Rs 435 crore, contributing 77 per cent to total revenues in FY 2005. The revenues from custom and clinical research higher by 70 per cent to Rs 66 crore from Rs 39 crore.

Kiran Mazumdar-Shaw, chairman and managing director, Biocon Ltd said that for the financial year 2005, all our key businesses - biopharmaceuticals, enzymes and research services demonstrated positive growth.

The revenue generation from contract research was 70 per cent, enzymes was 35 per cent from the markets of US and Europe. Biopharmaceuticals generated 28 per cent growth with statins and Insugen providing the much needed fillip.

The company's results have exceeded its internal profit targets. "Given the increased capacity coming on stream in FY2005-06, we are confident of achieving healthy sales growth, despite the pricing pressure on our statins business, Biocon is poised to maintain current levels of operating margins. However, profit for the year ahead will not increase as fast as sales which is attributable to the increased depreciation charge on our new facilities which will cater to the large US market opportunities for Simvastatin and Pravastatin emerging in 2006.Another point to be noted is that Biocon plans to significantly increase R&D investments to support a discovery led research strategy," Shaw said adding, "The approach would deliver superior shareholder value over the medium and long term."

The company has made substantial progress in the collaborative in-licensed R&D programmes which includes h-R3/Cancer Vaccines joint venture initiative with the Centre for Molecular Immunology, a Cuban-based monoclonal antibody and cell culture technology major.

Its oral insulin based on Nobex Corporation and Human Antibodies with Vaccinex. The two projects are expected to give the much needed impetus in tapping global opportunities in the next 3-4 years.

For the FY2005-06, Biocon expects statins, immunosuppressants, Insulin and branded formulation in the cardio-diabetic segment deliver significant growth. The key growth driver will be from the research activities.