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Our Bureau

Bangalore, Oct. 18 Biocon Ltd’s net profit for the second quarter rose by 22.5 per cent to Rs 44 crore driven by biopharmaceuticals and branded formulations. Revenues were up 7.5 per cent at Rs 235.5 crore.

The consolidated Q2 revenue was Rs 280 crore and net profit Rs 54 crore.

Biocon’s Chairman and Managing Director, Ms Kiran Mazumdar-Shaw, told a news conference that Biocon was looking to inorganically supplement its research and research services capability. With the divestment of its enzymes business to Novozymes for $115 million now complete, “it gives us the financial muscle for M&As. We are looking to move up the value chain, from a B2B and API focus earlier. The next reach is bigger markets and acquisition in Europe and the US, etc,” she said. Biocon sold its enzymes business to Novozymes in July this year.

It was in talks with a few companies and was looking at total acquisition or investment in these candidates.

During the half year, biopharmaceuticals including active pharma ingredients, anti-diabetic and cardiology drugs, contributed 76 per cent of the revenue of Rs 550 crore, contract research Rs 118 crore.

“Technology and licensing revenue (of Rs 15 crore) certainly helped to boost the PAT this year” and will grow to 10-15 per cent in a few years, she said.

The rupee’s rise restrained profit. “Rupee appreciation has made an impact on the top and bottomlines though we covered the topline to a certain extent,” she said.

Research services from its subsidiaries – the custom research arm Syngene International and the clinical research arm Clinigene International - delivered a robust 60 per cent growth on dollar terms and 43 per cent on rupee. The Syngene-BMS tie-up would start yielding revenues from next quarter.

In the pipeline are the novel oral and nasal insulin products - of which oral insulin is undergoing phase-1 trials; rheumatoid arthritis; and cancer drugs BVX 10 and 20; and cardiology drug, oral BNP.

Consolidated half year revenue was up 19 per cent to Rs 550 crore (Rs 461 crore) year on year; while net profit grew 27 per cent to Rs 107 crore (Rs 84 crore).

Biocon’s share price closed marginally lower at Rs 505.3 on the BSE and Rs 506 on the NSE.

“We are getting 50 overseas Indians to join us,” Ms Mazumdar-Shaw. These scientists would head groups and train the younger lot.

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