Biocon reported uninspiring numbers on the back of a weakening dollar, low uptake due to GST rollout and inclusion of operational and fixed costs in its Malaysian facility.

The Bengaluru-based biotech major also said that it is 'cautious' about its prospects in the fiscal as it awaits regulatory approvals for its biosimilars business in key emerging markets. However, Biocon said that it hopes to maintain its core operating margins, which the company said is currently 29 per cent. Core operating margins excludes impact of forex, R&D and licensing margins.

For the quarter ended June, Biocon’s net consolidated net profit fell 51.2 per cent year-on-year to ₹81.3 crore against ₹167 crore it posted in the corresponding period last year.

Similarly, revenues were down 4 per cent to ₹988 crore against ₹1,033 crore it posted in the same period last year, largely due to decline in its small molecules business.

Biocon’s small molecules business went down 17 per cent to ₹363 crore, mainly due to forex fluctuations and some amount of pricing pressure, while branded formulations sales fell 17 per cent to ₹130 crore.

Biocon’s biologics business grew 15 per cent to ₹184 crore and research services business grew 6 per cent to ₹291 crore. “Our biologics business had a strong quarter led by insulin sales,” said Kiran Mazumdar-Shaw, CMD, Biocon.

The research services business comes under Syngene, a separately listed entity.

On other parameters, spending on R&D was ₹58 crore in the June quarter, 13 per cent higher than the same period last year.

Interest and depreciation costs increased 60 per cent to ₹115 crore for the quarter, largely attributable to the Malaysia facility, the company said.

In the quarter Biocon received the US FDA Oncologic Drugs Advisory Committee (ODAC) recommendation for approval of its biosimilar Trastuzumab, a version of which can be used to treat patients with breast and gastric cancers.

The company’s scrip closed at ₹390, down 2.2 per cent.

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