Biocon Q3 net profit plunges 46% to Rs 920 million on higher interest

Depreciation costs at its Malaysia plant and drop in licensing revenue due to temporary shutdown of its biologics plant also led to lower numbers

India's largest biopharma firm Biocon said third quarter net profit dropped 46 per cent to Rs 920 million as it saw higher interest and depreciation costs at its Malaysia plant and drop in licensing revenue due to temporary shutdown of its biologics plant to adhere to regulatory needs.

Bengaluru-based Biocon reported revenues remain flat at Rs 10.92 billion, impacted by drop  in sales of biologics and small molecules, besides a dip in other income.

"Our Branded Formulations and Research Services segments reported a healthy double-digit growth during this quarter. We expect growth in other segments to revive from early next fiscal,” Biocon Chairman and Managing Director Kiran Mazumdar Shaw said in a statement.

In the quarter, Biocon got the US food and drug administration (USFDA) approval for its biosimilar Trastuzumab partnered with Mylan.  It also signed a deal with Sandoz to develop, manufacture and commercialize a portfolio of next wave of biosimilars for global markets.

The research services business, through Syngene, registered a growth of 17 per cent at Rs 3.87 billion on the back of a strong performance by the chemical development vertical and good traction in discovery services, it said. Syngene has extended its agreement with Bristol-Myers Squibb (BMS) through 2026 and expanded the scope of its current collaboration.

Biocon had reported profits of Rs 1.71 billion on revenue of Rs 10.92 billion in October to December quarter last year.

Biocon stock closed Rs 7.20, or 1.12 per cent, down on Wednesday on the Bombay Stock Exchange. The results were announced after market hours.