Biocon net dips by 13 % to Rs.91 crore in Q3; inducts two additional independent directors

Biocon net dips by 13 % to Rs.91 crore in Q3; inducts two additional independent directors

Biocon, a Rs.2,850 crore plus fully integrated, innovation-led biopharmaceutical major, has posted lower consolidated net profit of Rs 91 crore during the third quarter ended December 2014 as against Rs 105 crore in the corresponding period of last year. The net profit declined due to credit risk in the Middle East, reduced off-take of specialty API and capacity constraints. EBDITA also declined by 9.1 per cent to Rs 170 crore from Rs.187 crore. Its total sales improved by 8.7 per cent to Rs.761 crore from Rs 700 crore. With lower net profit, its EPS declined to Rs 4.6 as against Rs.5.3 in the last period.

The sales of biopharma, including licensing income, increased by 4.3 per cent to Rs.436 crore from Rs 418 crore and that of Indian branded formulations moved up by 6.1 per cent to Rs.105 crore from Rs 99 crore. The research service income improved by 20 per cent to Rs.220 crore. Its research & development expenditure went up sharply by 134 per cent to Rs 47 crore from Rs 20 crore in the similar period of last year and staff cost by 18 per cent to Rs 126 crore from Rs 107 crore. Its two additional global programs have entered the clinic and it commenced recruitment of patients for the India clinical trial of its biosimilar bevacizumab. Further, Trastuzumab licensing in emerging markets is making progress.

Its branded formulations continue to do well with key brands in the oncology and metabolics portfolio. CANMAb, its biosimilar trastuzumab for treatment of HER2+ metastatic breast cancer has been one of the most successful launches of an oncology product in India. The company is evaluating entering into new specialty segments in line with its focus on having a specialty formulations franchise. Recently it entered into an agreement with US based Gilead Sciences to license its chronic hepatitis-C, blockbuster product range including sofosbuvir and sofosbuvir/ledipasvir combination.

Commenting on the quarterly performance and highlights, Chairman and Managing Director, Kiran Mazumdar-Shaw stated, “A significant ramp up in R&D expenses this quarter reflects advances made in multiple R&D programs. Two programmes viz. trastuzumab and glargine are progressing well in global Phase III clinical trials, while two other biosimilar programs have entered the clinical stage globally.  This clearly positions Biocon as having one of the largest portfolio of Biosimilars in the clinic. Our Research Services arm, Syngene, has reported the best quarter thus far at Rs.220 crore which bodes well as the company prepares for a public listing. I am also pleased to announce the expansion of Biocon’s Board with the induction of two new distinguished Board members: Dr. Jeremy Levin, former CEO of TEVA and Prof. Vijay Kuchroo, renowned immunologist and Director of the Evergrande Centre, Harvard Medical School.  Biocon continues to invest in its uniquely differentiated Biosimilars portfolio, which straddles both Insulins and Monoclonal Antibodies.   We are confident this will deliver short term growth in the emerging markets and drive long term value creation across global markets.”

Meanwhile, Biocon inducts former Teva CEO Dr Jeremy M Levin and Harvard Medical School professor Dr Vijay K Kuchroo, as additional independent directors on its board.

Biocon's consolidated net sales for the nine months period ended December 2014 increased by 4.7 per cent to Rs 2,229 crore from Rs 2,130 crore in the same period of last year. Its sales of biopharma sales including licensing income increased marginally by 0.7 per cent to Rs 1,314 crore from Rs 1,305 crore. The sales of branded formulations in domestic market improved by 10.7 per cent to Rs 331 crore and that of contract research improved by 11 per cent to Rs 584 crore. However, its consolidated net profit declined by 1.3 per cent to Rs 296 crore from Rs 300 crore.

Biocon, through its wholly owned subsidiary Biocon Research Ltd (BRL), concluded the sale of its 10 per cent stake in Syngene International Ltd to IVF Trustee Company Pvt Ltd. Now the company is planning to offload 10-15 per cent stake via an offer for sale.