Companies

Biocon Q1 net down 8.71% at Rs 70.05 cr

Our Bureau Mumbai | Updated on March 12, 2018 Published on July 21, 2011

biocon

Biotech major Biocon hit by lower licensing income this quarter has reported a nine per cent decline in net profit at Rs 70 crore for the first quarter ended June 30, 2011.

The company's total income for Q1 is up 11 per cent at Rs 454 crore. EBITDA margins was 12 per cent at Rs 133 crore in Q1 FY2011-12 compared with Rs 118 crore recorded in the corresponding period last year.

Ms Kiran Mazumdar-Shaw, Chairman and Managing Director of the company, said, “The company has delivered a PAT of Rs 70 crore with a robust increase in profits derived from its core manufacturing and services businesses. But there has been lower licensing income recognition this quarter. This is as per plan and is expected to ramp up in the quarters ahead.”

“Inherent variability in licensing income linked to development and regulatory timelines requires this to be viewed on an annualised basis. Our services businesses led by Syngene and Clinigene had a strong quarter signalling the success of our integrated business model that offers end- to-end services,” she added.

Higher viability

Mr Murali Krishnan, President, Group Finance, Biocon Group, said, “Licensing income from our partnered programs will see a high degree of variability given the inherent nature of licensing recognition that is linked to development and regulatory timelines.

“In FY11, licensing income varied from Rs 21 crore to Rs 77 crore across quarters. Therefore, it is prudent to view licensing on an annualised basis.”

The company has six verticals in branded formulations — namely Diabetology, Oncotherapeutics, Nephrology, Cardiology, Dermatology and Comprehensive Care — have posted a combined year-on-year (YoY) growth of 28 per cent for Q1FY12.

Biopharma

The company's biopharma revenue is up eight per cent YoY on the back of growth in the sales of immunosuppressant and the branded formulations segments. Statins continue to remain buoyant with Atorvastatin and Fluvastatin leading the sales in this segment.

Biosimilar

In biosimilar (insulins), the company's licensing income from the Pfizer partnership will continue to accrue in the remainder of the year based on certain development and regulatory milestones.

“Our co-marketing partner, Pfizer, is expected to launch Insulin and Glargine in India this coming quarter. We expect to launch our re-usable Insulin pen, Insupen, by the end of next quarter,” said Ms Mazumdar-Shaw.

Published on July 21, 2011

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