Bangalore: Biocon Ltd, India’s largest biotechnology company, reported a fivefold increase in its net profit in the third quarter to Rs291.8 crore, up from Rs55.3 crore in the corresponding period last year.
The company attributed the increase to the sale of its enzyme business to Novozymes of Denmark in October, from which it accrued a pre-tax gain of Rs330 crore.
Sales, however, declined 15.2% to Rs237.3 crore from Rs279 crore in the previous quarter which according to M.B. Chinappa, vice-president, finance, is largely due to loss of the enzymes business. “There was another shortfall of Rs10 crore in biopharmaceutical sale as exports are lower in this season,” Chinappa added.
“Rupee appreciation is impacting its services and biopharma business. The margins will be under pressure,” said an analyst with Karvy Securities.
During a post-earning conference call with analysts, Biocon said it had taken a write-off of Rs22 crore on its oral BNP (brain-type natriuretic peptide product for cardiovascular disorders) programme, which has been put on hold owing to the US regulator’s demand for a larger trial seeking more safety data.
Biocon said it has decided to launch an initial public offering for its fully owned subsidiary Syngene International Ltd, a contract research company, in the next fiscal.
“As one of Asia’s largest and most profitable contract research companies, Syngene’s IPO can deliver superior shareholder value,” said Kiran Mazumdar-Shaw, chairperson and managing director of Biocon.
According to Mazumdar-Shaw, even the second subsidiary, Clinigene International Ltd, would go public once it reached a critical mass of Rs100 crore in revenue.
Biocon also announced an equity investment, of under $10 million (Rs39.3 crore), for a 30% stake in IATRICa Inc., an early stage biotech company based in Maryland, US, to co-develop a new class of drugs, immuno-conjugates, for cancers and infectious diseases.
Biocon will register its recombinant human insulin, Insugen (currently sold in India) in?40?countries?by??the?year-end.