Biocon Ltd, the Rs 650-crore Bangalore-based biotechnology company, suffered heavy setback during the second quarter ended September 2005 due to pricing pressure in European statin market. The company's net sales increased by 4.1 per cent to Rs 177.57 crore from Rs 170.56 crore in the corresponding period of last year. The net profit declined by 28.9 per cent to Rs 35.37 crore from Rs 49.77 crore. The earning per share declined to Rs 3.7 from R 5.26.

The company's net sales for the first half amounted to Rs 335.54 crore and it earned a net profit of Rs 68.26 crore.

"Given the challenges in the European Statins market, our results are stratifying. We are seeing strong growth in important parts of our business. We have many excellent growth drivers which are beginning to bear fruit. We are confident that we will deliver healthy operating margins for the full year," stated Kiran Mazumdar-Shaw, chairman & managing director, Biocon Limited.

Our discovery-led research programs in Diabetes and Oncology are making good progress. We are on track to complete Phase IIB clinical trials for our EGFR antibody, Biomab-EGF by the year end. We also expect to submit an IND for our oral Insulin molecule, IN105 by the end of this fiscal. I would like to reaffirm our belief in our innovation pathway which will deliver long term, sustainable value to our shareholders, informed Shaw.