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Biocon Q3 profit down 7% at Rs 203 crore

Revenues rose YoY 14 percent to Rs 1784 crore in the third quarter.

January 24, 2020 / 04:52 PM IST
 
 
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Biocon on January 23 reported a 7 percent year-on-year (YoY) drop in net profit to Rs 203 crore in the third quarter ended December 31 due to higher R&D expenses and tax impact of an exceptional item. Profit for the same period last year was Rs 217 crore.

Net Profit before exceptional item was up 6 percent at Rs 225 crore.

Revenues rose 14 percent YoY to Rs 1,784 crore in the third quarter.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at 27 percent for Q3FY20 compared to the previous year's 26 percent.
The gross spend on research and development rose 46 percent to Rs 155 crore on YoY basis.

The core biologics segment reported revenue growth of 31 percent at Rs 588 crore for Q3FY20, led by higher traction in sales of key biosimilars in the developed and emerging markets.

Biocon launched biosimilars of Pegfilgrastim and Trastuzumab in the US with its partner Mylan. The company earns a major portion of its Biologic revenues from Pegfilgrastim and expects sales momentum from Trastuzumab in the coming quarters.

In Q3FY20, the company secured approval from the Argentinian health regulator, ANMAT for biosimilar Trastuzumab. The product will be commercialized by local partner Laboratorios Raffo. In addition, Biocon said it won approvals, market entries and tender wins for biosimilar Trastuzumab and Insulin Glargine in Latin America and CIS (Commonwealth Independent States).

The company said it also commenced supply of Insulin Glargine to the Ministry of Health (MoH), Malaysia. The Malaysian government has extended the contract with Biocon Malaysia for recombinant human insulin (rh-Insulin) formulations for a year under the government's Off-Take Agreement (OTA) initiative.

The small molecules where Biocon supplies active pharmaceutical ingredients (APIs) and formulations related statins and immune-suppressants rose 16 percent to Rs 588 crore.

The company said the small molecule APIs business performance was driven by increased sales of immune-suppressants in key geographies as well as stable demand for statins and specialty APIs.

“We filed for approval of three of our APIs in key regulated markets,” the company said in a release.

The generic formulations business crossed the Rs 100 crore revenue in Q3FY20, reporting robust growth on the back of consistent client acquisitions and increased market share for all its formulations launched in the US.

The branded formulations business reported a 26 percent fall in revenue at Rs 157 crore for Q3FY20, due to pricing pressure and other headwinds in both India and UAE businesses.

"We witnessed strong revenue growth of 14 percent to Rs 1,784 crore in Q3FY20, led by Biologics, Small Molecules and Research Services businesses,” said Chairperson & Managing Director, Kiran Mazumdar-Shaw stated:99

“We continued our journey of increasing access to high-quality biosimilars and commercialized our biosimilar Trastuzumab in U.S., Canada and many EU markets this quarter,” Mazumdar-Shaw said.

Biocon board also announced the elevation of Siddharth Mittal as CEO and Joint-Managing Director of Biocon. Mazumdar-Shaw will continue as Executive Chairperson and Managing Director.

Viswanath Pilla
Viswanath Pilla is a business journalist with 14 years of reporting experience. Based in Mumbai, Pilla covers pharma, healthcare and infrastructure sectors for Moneycontrol.
first published: Jan 23, 2020 08:56 pm

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