Biocon drops after poor Q3 earnings

Biocon lost 3.26% to Rs 412.25 at 09:49 IST on BSE after the company's consolidated net profit fell 13.39% to Rs 90.93 crore on 8.25% rise in total income to Rs 778.99 crore in Q3 December 2014 over Q3 December 2013.

The result was announced after market hours yesterday, 22 January 2015.

Meanwhile, the BSE Sensex was up 365.65 points, or 1.26%, to 29,371.67

On BSE, so far 68,125 shares were traded in the counter, compared with an average volume of 1.05 lakh shares in the past one quarter.

The stock hit a high of Rs 422 and a low of Rs 411 so far during the day. The stock hit a record high of Rs 553.70 on 4 July 2014. The stock hit a 52-week low of Rs 402.45 on 7 January 2015.

The mid-cap company has an equity capital of Rs 100 crore. Face value per share is Rs 5.

Biocon's earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs 170 crore and EBITDA margin was 22% in Q3 December 2014.

Total Q3 December 2014 revenue was Rs 779 crore of which biopharmaceuticals segment contributed for Rs 541 crore, research services Rs 220 crore and other income Rs 18 crore.

Commenting on the quarterly performance and highlights, Chairman and Managing Director, Kiran Mazumdar Shaw stated, A significant ramp up in R&D expenses this quarter reflects advances made in multiple R&D programs. Two programs viz. trastuzumab and glargine are progressing well in global Phase III clinical trials, while two other biosimilar programs have entered the clinical stage globally. This clearly positions Biocon as having one of the largest portfolio of Biosimilars in the clinic. Our Research Services arm, Syngene, has reported the best quarter thus far at Rs 220 crore which bodes well as the company prepares for a public listing. I am also pleased to announce the expansion of Biocon's Board with the induction of two new distinguished Board members: Dr. Jeremy Levin, former CEO of TEVA and Prof. Vijay Kuchroo, renowned immunologist and Director of the Evergrande Centre, Harvard Medical School. Biocon continues to invest in its uniquely differentiated Biosimilars portfolio, which straddles both Insulins and Monoclonal Antibodies. We are confident this will deliver short term growth in the emerging markets and drive markets and drive long term value creation across global markets.

Biocon said that the company's board of directors at its meeting held yesterday, 22 January 2015, has approved to initiate the process to list its subsidiary, Syngene International. The company would offload 10%-15% of its stake through an offer for sale, Biocon said.

Biocon is India's largest and fully-integrated, innovation-led biopharmaceutical company.

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