Biocon net up 14 percent in third quarter

Biotech major Biocon Ltd. reported net profit of Rs.105 crore for third quarter (Oct-Dec) of this fiscal (2013-14), registering 14 percent growth year-on-year (YoY) from Rs.92 crore in like quarter year ago.

In a regulatory filing with the stock exchanges Thursday, the city-based company said consolidated revenue for the quarter under review (Q3) rose nine percent YoY to Rs.719 crore from Rs.660 crore in same period year ago.

Earnings before interest, tax, depreciation and amortisation (Ebitda) margin grew 12 percent YoY to Rs.187 crore from Rs.167 crore and operating margin grew 26 percent YoY.

"The quarter has been eventful, with many research milestones across novel molecules and biosimilars portfolio," Biocon chairperson Kiran Mazumdar-Shaw said in a statement here.

The company also received approval of the regulator (Drug Controller General of India) during the quarter for commercially launching its bio-similar (Trastuzamab Canmab) drug to treat breast cancer in the domestic market at an affordable price.

"We have also strengthened our research and development (R&D) pipeline with two new alliances giving us access to novel technology platforms," Shaw said on the occasion.

Biopharmaceuticals contributed Rs.517 crore and contract research Rs.183 crore to the total sales revenue.

"Performance of biopharmaceuticals has been steady, as we continue to optimise the product basket," Shaw noted.

The company witnessed momentum in research services and growth returning in branded formulations.

"Our investment efforts in Malaysia continue and we are on track to commission our insulin facility in ensuing fiscal (2014-15)," Shaw affirmed.

Expecting to close this fiscal (2013-14) on a strong performance across verticals, Shaw said the outlook remained positive even as the company strived to balance its revenue growth and R&D spend.

"Our portfolio and cost optimisation initiatives continue, helping us manage margins effectively. We are also investing in our R&D pipeline," Shaw added.