Biocon Q2 results: Net profit declines 10% to Rs 168 crore, revenue up 26%

Biocon posted a 10 per cent dip in net profit for Q2FY23 to Rs 168 crore on account of tax adjustments. Its overall revenue from operations grew by 26 per cent during the quarter to Rs 2,320 crore led by 34 per cent year on year growth in the biosimilars business.

The generics business grew by 18 per cent to Rs 623 crore, while the research services grew by 26 per cent. Generics contribute 26 per cent of Biocon’s overall turnover, while research services contribute 32 per cent, and biosimilars have the largest share of 42 per cent.

Biocon’s core Ebitda came in at Rs 816 crore, up 34 per cent.

Kiran Mazumdar-Shaw, executive chairperson, Biocon and Biocon Biologics said: “We reported a strong consolidated revenue growth of 23% YoY for Q2FY23 at Rs 2,384 Crore driven by 34% growth in Biosimilars, 26% in Research Services and 18% in the Generics business.”

She added that Biocon’s gross R&D spends increased by 52% YoY this quarter to Rs 252 Crore

“We expect to consolidate on this performance in the second half of FY23. Enhanced capacities and new launches will drive growth for our API and Generic Formulations business, while continued business momentum should help Syngene achieve its guidance for the full year,” Shaw said.

“The consolidation of Viatris’ global biosimilars business and the strategic vaccines alliance with Serum Institute will add to the growth of the Biosimilars business in H2FY23. We have secured necessary financing and obtained relevant approvals for the Viatris transaction, which is expected to close shortly,” she added.

In Q2FY23, the Viatris-led advanced markets business reported strong year-on-year growth on the back of improved performance by interchangeable bGlargine (Semglee), which reported an uptick in new prescription share of 14% and overall prescription  share of 12% (week ended October 14, 2022).

Siddharth Mittal, CEO & Managing Director, Biocon said, “I am pleased with the sequential as well as YoY growth of the Generics business in Q2, on the back of the stabilization of our API business, with immunosuppressants being a significant contributor. Our statins portfolio continued to encounter pricing pressures.”