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Biocon, a leading biopharmaceutical company, has reported a 10 per cent growth in its consolidated revenue to ₹1,945 crore compared to the same quarter of the previous year. Revenue from operations increased 5 per cent in the second quarter to ₹1,840 crore from ₹1,750 crore in the year-ago period.
However, the company’s consolidated net profit declined 18 per cent to ₹138 crore for the second quarter ended September 30.
The company said it has made provisions under exceptional item regarding modification of the optionally convertible debentures of a PE investment in Biocon Biologics, and reversal of Services Export Incentive Scheme (SEIS) claims relating to a prior period.
Net profit for the second quarter, before such exceptional items, stood at ₹188 crore, up 11 per cent from the same period a year ago, it added.
Kiran Mazumdar-Shaw, Executive Chair, Biocon and Biocon Biologics, said the growth was “..primarily driven by good performance of the research services and biosimilars business segments, which reported a growth of 17 per cent and 10 per cent, respectively.”
Generics sees fall in growth
All the major segments of the business including biosimilars, novel biologics and research services except for generics saw growth. The generics business however recorded revenues of ₹530 crore in the second quarter of the current fiscal compared to ₹604 crore in the same quarter of the previous fiscal indicating a de-growth of 12 per cent.
Siddharth Mittal, CEO & Managing Director, Biocon Limited, said, “The generics business witnessed a muted performance for the quarter as we encountered continuing pricing pressure in the US for our formulations portfolio, and a slower than expected ramp-up of demand for some of our key APIs. Operational and supply challenges in the earlier part of the quarter also impacted the performance of the API business. There was advance buying by customers in the corresponding period of the previous fiscal, apprehending Covid related disruptions and is reflected in the year-on-year decrease in revenues.”
Share price dips
On Thursday, Biocon shares were up by 2.14 per cent to trade at ₹349.05 amidst a weak overall market. However, on Friday, they dipped over 4 per cent.
The stock tumbled 4.17 per cent to ₹330.70 on the BSE. At the NSE, it declined 4.16 per cent to ₹330.60.
Also see: AMR mitigation must top pharma industry’s agenda
The company said that Biocon Biologics-led business in emerging markets, including India, recorded a strong growth during the quarter, driven by the launch of key biosimilars in new markets and expansion of their existing business.
Biocon announced that consequent to the retirement of John Shaw from the Board of Biocon Limited, Dr. Eric Mazumdar has been appointed as a Non-Executive Director to the Board, with effect from November 1, 2021. Dr. Mazumdar is an Assistant Professor of Computing and Mathematical Sciences, and Economics at the California Institute of Technology.
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