Bangalore: Statins and insulin maker Biocon Ltd reported a weak 4.3% year-on-year (y-o-y) increase in revenue to Rs.649 crore for the March quarter, as sales of its core biopharmaceutical products fell. Biopharmaceutical revenue fell to Rs.464 crore from Rs.471 crore in the year-ago quarter.
Net profit for the March quarter rose 154% year-on-year to Rs.249 crore, mostly due to an exceptional item. Excluding the one-time gain, profit fell 30%.
Biocon said that it received $20 million from US drug maker Mylan Inc. as an upfront payment related to its deal on insulin products. In February, India’s biggest biotechnology company signed a deal with US drug maker Mylan for an exclusive collaboration for the development and commercialization of generic versions of its three insulin analog products globally.
For the current year, the company said it expected revenues to rise in line with its research and development (R&D) spend.
“We expect our R&D costs to increase in line with the progress being made by our generic biologics and novel molecules. Revenues should keep pace with the increasing R&D investments, as we gain further traction in emerging markets this fiscal,” Biocon said in a statement.
In the year ended March, R&D costs rose 20% to Rs.164 crore, but fell 18% in the fourth quarter.
Biocon also announced it would pay a special dividend of Rs.2.50 a share and appointed Daniel Bradbury, former chief executive at US-based Amylin Pharmaceuticals Llc, to its board of directors.