Biocon has reported a healthy rise in net profit for the first quarter of the current fiscal on the back of strong all round performance across all service lines and increased profitability from its R&Dand branded formulations business.
The Bengaluru-based biotech company posted 23 per cent growth in consolidated net profit at ₹126 crore for the April-June quarter, compared with ₹103 crore in the same period last year. Commenting on the results, Chairperson and Managing Director Kiran Mazumdar-Shaw said that all business segments grew well, in addition to growth in biosimilars and biopharma business. “This, combined with product sales and monetisation of R&D assets through licensing, helped us to grow,” she added. The biotech major also had a one-time income this quarter from Merck for capacity reservation. Revenues came in at ₹857 crore, up 15 per cent. Biocon’s shares closed at ₹466 or 1.6 per cent higher on the BSE on Friday, compared with the previous close.
The all round growth comes at a time when its subsidiary Syngene International plans to go for an open offer next week.
Branded formulations grew 14 per cent sequentially with sales of ₹112 crore in the first quarter and now contribute 14 per cent to its business. “We have optimised our portfolio with a focus on specialty molecules in chronic therapy areas,” she said.
Also, biosimilars segment is seeing traction with five programmes in phase-3 clinical development. During the quarter, the company licensed biosimilar Trastuzumab in key emerging markets. Trastuzumab is used to treat breast cancer. The company’s insulin business was boosted with the launch of insulin Glargine in Mexico and Colombia. The focus on key brands in branded formulations has begun to translate into a better quality of earnings, Shaw said. The company has grown 20 per cent in the insulin market, ahead of 14 per cent growth witnessed in that market, according to industry watchers.