The Hindu Business Line : Biocon standalone net dips 33% in first quarter

Bangalore, July 17 Biocon Ltd has recorded a 33 per cent drop in its standalone net profit for the first quarter of this year over the same period last year.

Its consolidated profit after tax (PAT) slid 72 per cent.

The company attributed the PAT decline during the April-June 2008 quarter to the absence of licensing income and exchange losses across the group.

On a consolidated basis, net profit was Rs 15 crore (Rs 53 crore) after the mark to market provision and total sales were Rs 263.9 crore (Rs 270.8 crore).

The group includes five subsidiaries – three of them joint ventures.

Ms Kiran Mazumdar-Shaw, Chairman and Managing Director, said, “The absence of licensing income this quarter has had a disproportionate impact on profitability. However, we are confident that licensing income will be significant this fiscal.”

“Biocon’s Q1 FY09 performance has been unfortunately impacted by rupee volatility which has seen us make a mark to market provision of Rs 26 crore. We have consciously been conservative in making this provision. Our business fundamentals are robust, which is demonstrated by the strong profit growth in our core biopharmaceutical business,” she said.

“We expect the quarters ahead to compensate for the exchange losses booked this quarter and end the year with improved profitability,” she said.

Last year, the company got a Q1 licensing income of Rs 17 crore.

Licensing income is event-driven and inherently variable across quarters, the company said in a release.

Biocon’s shares closed nearly seven per cent down at Rs 351 on the NSE on Thursday.

Pre-tax profits were affected by exchange losses across the group by Rs 6 crore.

A mark to market provision of Rs 26 crore added to the impact. Sales on a like for like basis (excluding enzymes) increased by seven per cent.

PROMISING PIPELINE

Several branded formulations have attained high rankings in their product segments in India, Ms Mazumdar-Shaw said.

Over the next two years, many of its research programmes will reach a licensing phase which can provide attractive returns on investment.

The trial phases of oral insulin IN105 and rheumatoid arthritis programme T1h (anti CD6 monoclonal antibody) are underway. Biocon filed 23 new patents in Q1, bringing the total tally to 881 filings and 154 grants.

Breast cancer drug launched

Biocon Ltd and Abraxis BioScience Inc. have announced the national launch of their breast cancer drug Abraxane

The drug is meant to treat breast cancer when the combination therapy for metastatic disease fails or the tumour relapses within six months of chemotherapy.

Abraxane is available as a single-use 100 mg vial. The drug is approved for marketing in 35 countries, the US and Europe.