Biocon Q2 net rises 13%

Revenues rose 17 per cent to Rs 753 crore for the same period

BBiotechnology major Biocon Limited has reported a 13% rise in its Q2 2013 net profit to Rs 102 crore over the corresponding quarter of the previous year driven strongly by its contract research arm. 

 

Revenues rose 17% to Rs 753 crore for the same period. The company which operates under two main verticals of biopharmaceuticals and contract research said that these divisions grew by 18% and 46% respectively.  Biocon's EBITDA rose 13% to Rs 188 crore. 

 

On a half year basis, the company's net profit forse 16% to 196 crore even as the revenues rose 19% o R 1468 crore.  EBIDTA surged by a good 19% to Rs 363 crore backed by healthy growth in its two pillars. 

 

Speaking of the results, Kiran Mazumdar-Shaw, CMD, Biocon Ltd, said, "Biocon has witnessed a strong performance in the first half of FY14 driven by an increased traction in emerging markets. Immuno-suppresants and insulins continue to drive growth. This is in part bolstered by capacity expansion of our insulins plant. Our bio-similar pipeline partnered with Mylan, continues to progress well and we anticipate Indian regulatory approval for our biosimilar Trastuzumab in the near future."

 

She added, "The research services vertical has delivered a stellar set of numbers, despite an exceptional forex loss in Q2 FY14. This quarter also saw the launch of our second novel biologic, Alzumab, for psoriasis in India. Alzumab has already seen an encouraging strong acceptance in the market. The branded formulations business has grown ahead of the market, but has been muted by business and regulatory challenges. We remain confident that growth will continue across all businesses."

 

The research services arm which contributes around 25% to the group revenues has been aggresively growing and Biocon is preparing for a public offering.  

Commenting on the performance, Peter Bains, director, Syngene International, said, "The strong performance of research services in H1FY14 reflects the underlying strength of our diversified service offerings, which span the discovery and development continuum. The growth has been driven by a strong momentum in our manufacturing services platform along with a ramp up in our contracts.

"Our continuous investments in capacities and capabilities have helped us enhance our end-to-end discovery, development and manufacturing offerings, in line with our clients' evolving requirements. We expect the current business momentum to continue supported by incremental investments, leading to a stong performance this fiscal."