The Hindu Business Line : Biocon Q3 net dips 28%

CONTINUING pressure on statin pricing saw Biocon Ltd's net profit slip 28.3 per cent to Rs 32.79 crore for the third quarter ended December 31, 2005 over the same period of 2004. (It made a net profit of Rs 45.76 crore for the October-December 2004 quarter.)

The biotech company showed higher net sales of Rs 172.4 crore or a growth of 7.9 per cent over sales of Rs 159.75 crore for the same period of 2004.

"Operating results continue to be challenged by the difficult pricing environment in the European statins market. However, the US market for generic statins offers respite in 2006-07," the company said.

Operating profit at Rs 47.15 crore was down from Rs 56.21 crore.

Biocon said the consolidated nine-month performance was in line with expectations: it showed revenue of Rs 578 crore and PAT of Rs 126 crore including those for 100 per cent subsidiaries Syngene International and Clinigene International.

The Chairman and Managing Director, Ms Kiran Mazumdar-Shaw, said, "I am pleased that we continue to deliver healthy profits at a time when we are investing in our discovery led research programmes. Operating (EBITDA) margins of 30 per cent demonstrate the quality and spread of our various businesses."

She said progress was being made on the R&D front, in particular in oncology and diabetes.

A dedicated sales organisation has been set up for oncology products. Research services, insulin and other pharmaceutical products performed strongly.

During the just ended quarter, sales of biopharmaceuticals grew 11 per cent to Rs 154 crore (from 138 crore year on year), sale of enzymes dipped 14 per cent to Rs 18 crore (from Rs 22 crore), while revenue from contract research grew 49 per cent from Rs 18 crore to Rs 27 crore.