NEW DELHI: Biocon Ltd reported a sharp year-on-year (YoY) decline of 42% in its consolidated net profit to ₹123 crore for January-March (Q4) as the firm's flagship operations of biosimilars were hit by the disruption caused by the covid-19 pandemic.
Revenue of the Kiran Mazumdar Shaw-led firm's subsidiary, Biocon Biologics, was down by a fifth at ₹357 crore due to operational challenges related to coronavirus and less-than-expected contribution from its partners, Biocon said in an exchange filing.
“We had excellent growth for three consecutive quarters in FY20 until the covid-19 pandemic impacted our Q4 earnings. However, we expect the biosimilars business to recover Q1FY21 onwards on the back of growth opportunities of our key biosimilars supplemented by the expected US launch of Insulin Glargine in mid-CY20," said Christiane Hamacher, chief executive officer (CEO) and managing director (MD) sat Biocon Biologics India.
However, the pharmaceutical major did not elaborate on the setbacks it had during the quarter from covid-19.
Biocon said early sales of Fulphila, its biosimilar to pegfilgrastim, in Australia were encouraging. The company had launched Fulphila in both Australia and Canada during the reporting quarter.
Fulphila is used to stimulate production of white blood cells in cancer patients receiving chemotherapy.
Biocon’s branded formulations business continued to face challenges, with covid-19 further compounding it, especially as operations were hurt by the lockdown imposed since 25 March. The segment posted a 12% YoY decline in its revenue to ₹117 crore.
Slump in the two operations reflected in the consolidated earnings as its operating income was down 11% at ₹382 crore, while margin contracted by 5 percentage points to 23%.
However, the company’s other large businesses--small molecules and active pharmaceutical ingredients (API)--posted a rise of 15% at ₹541 crore led by growth in India, Asia Pacific region and the European Union (EU), the company said.
“Steady API sales and a robust YoY growth in Generic Formulations led to a 15% increase in small molecules revenue for the fourth quarter, helping us close FY20 with a 18% rise in revenue to ₹2,094 Crore," Biocon CEO and MD Siddharth Mittal said.
Mittal said while covid-19 pandemic presents a challenge to the company, he expects it to come out stronger.