India's largest biotech firm Biocon said Q2 net profit dropped by half to Rs 69 crore as it saw pricing pressure on active pharmaceutical ingredients (API). The Bengaluru-based Biocon saw revenue grow marginally by 3 per cent to Rs 1,019 crore due to regulatory and tender delays in its biosimilar business. However, it saw growth recovery in its research services subsidiary (Syngene) and branded formulations business segments. "We expect these headwinds to ease by the end of this fiscal,” said Kiran Mazumdar-Shaw, Chairman and Managing Director of Biocon in a statement. “A significant development in this quarter is the submission of our Insulin Glargine dossier with the USFDA under 505 (b)(2) pathway.” Biocon reported profits of Rs 147 crore on revenue of Rs 993 crore in the July to September quarter last year. The operating margins were largely impacted due to inclusion of fixed and operating costs related to the Malaysia facility and reduced gross margins due to pricing pressure in key markets, the firm said.
Operating margins, calculated as sales minus expenses, stood at 23 per cent.The licensing income for the quarter stood at Rs 1 crore as compared to Rs 33 crore in the comparable period last year. Biocon stock closed 0.15 per cent down at Rs 365.60 on the Bombay Stock Exchange on Thursday. The results were announced after the stock exchanges closed.