Biocon Q1 net rises 35% to Rs167 crore
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Hyderabad: Biocon Ltd on Thursday said net profit rose 35% in the quarter ended 30 June led by the company’s biosimilars and small molecules businesses, besides higher sales at its contract research arm Syngene International Ltd.
The Bengaluru-based company posted a net profit of Rs.166.6 crore in the first quarter, against Rs.123.9 crore a year ago. Revenue rose 21% to Rs.982.4 crore from Rs.813.9 crore in the year-ago period.
“Our strong performance this quarter has been driven by an all-round growth of our business across small molecules, biologics, branded formulations and research services,” said Kiran Mazumdar-Shaw, chairperson and managing director of Biocon.
The company’s contract research arm Syngene contributed about a third to Biocon’s revenue.
“Our vertical integration strategy into generic formulations is working well with the completion of ‘full-cycle’ development of a few products positioning us for regulatory filings in the developed markets, later this fiscal,” the company said.
“The biopharma growth was fuelled by a strong performance by biosimilars, including insulins and monoclonal antibodies (MAbs),” Biocon said
A biosimilar product is a complex biological product that follows a different approval pathway compared to chemical drugs. Biosimilars involve clinically testing the drug on animals and humans to demonstrate that the drug is highly similar to the innovator biological product.
Biocon said it spent about Rs.92 crore or 10% of its sales in the first quarter on research and development.
The small molecules division, which consists of differentiated active pharmaceutical ingredients (APIs) posted a revenue growth of 9% to Rs.357 crore, led by sales to India-based customers servicing the needs of the US market and to some key markets in Latin America and Africa & Middle East regions.
Revenue at the biologics vertical comprising novel biologics and biosimilars grew 53% to Rs.107 crore.
Separately, Syngene International reported a 28% increase in net profit for the quarter ended 30 June.
It said the performance was led by sustained momentum across key verticals including dedicated centres, discovery services as well as development and manufacturing services.
Net profit rose to Rs.59.8 crore during the quarter, from Rs.46.6 crore a year ago. During the period, revenue rose 17.5% from Rs.233.7 crore to Rs.274.5 crore.
“We are pleased to report a good start for the year with all our three verticals performing as expected,” said Jonathan Hunt, chief executive officer of Syngene.
Biocon also said the European Medicines Agency (EMA)—the European Union (EU) drug regulator—has accepted for review, Mylan NV’s marketing authorization application for the proposed biosimilar pegfilgrastim, used to stimulate the level of neutrophils, a type of white blood cells in cancer patients undergoing chemotherapy. Biocon has a partnership with Mylan to co-develop specific biosimilars.