Biosimilars growth props up Biocon Q2 PAT by 168% to Rs 126 crore

Biologics major Bengaluru-based Biocon posted a 168 per cent year-on-year rise in its consolidated net profit for the September quarter to Rs 126 crore, riding on its biosimilars business, which saw a 97 per cent growth in revenues. Biocon's revenues grew by 50 per cent to Rs 3,462.3 crore. On a sequential basis, the company exhibited a 1.16 per cent increase in revenue while the PAT rose 23.8 per cent. The EBITDA rose 68 per cent year-on-year to Rs 900 crore with a resulting Ebitda margin of 25 per cent. Biocon stock was up marginally on Friday at Rs 227.35 apiece. The results were declared after market hours.

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics stated, 'Biocon reported strong revenue growth this quarter, largely by a revenue rise of 97 per cent in Biosimilars. Biocon Biologics is now driving the business in North America and most of the Emerging Markets, and integration of the acquired business in Europe and a few remaining countries is expected to be completed during the year. The Generics Business has expanded its geographic manufacturing presence with the acquisition of an oral solid dosage manufacturing facility in the U.S. Syngene expects Biomanufacturing to drive future growth, which will be bolstered by the proposed acquisition of a large-scale facility in Bengaluru.'

The Generics segment, encompassing APIs and Generic Formulations, exhibited a 4 per cent year-on-year growth, reaching Rs 676 crore. Generics contribute 19 per cent to consolidated turnover.

Siddharth Mittal, CEO & Managing Director, Biocon Limited, said, 'The Generics business delivered modest year-on-year revenue growth. Our Generic Formulations business gained momentum on the back of an uptick in statin volumes, recently launched products, and expansion in MoW markets. The performance of our API business was subdued as customer demand moderated and a planned maintenance shutdown for one of our key products led to a phasing of supplies.' Mittal further added that they acquired an oral solid dosage facility in the US, which will enable them to add capacities for new products and better support our customers. 'Looking ahead, we expect an improved performance in the second half of the fiscal year with sustained delivery in Generic Formulations and some recovery in our API business,' he said.

Biocon's Biosimilars division, operated through Biocon Biologics, marked a 97 per cent year-on-year increase, totalling Rs 1,969 crore. Biosimilars contribute 55 per cent of consolidated turnover. Shreehas Tambe, CEO & Managing Director, Biocon Biologics, said, 'Biocon Biologics has continued its growth momentum and delivered nearly 100 per cent year-on-year revenue growth. This is largely driven by the acquisition of Viatris’ biosimilars business and the growth in market shares for our products in the U.S. and Europe, as we win new customers.'

Tambe said that robust demand for their Insulins portfolio in Emerging Markets will continue to drive growth in these markets and expand access to affordable life-changing treatments. 'This quarter we successfully transitioned the acquired business from Viatris in North America, and now look forward to integrating the remaining markets, including Europe, Japan, Australia, and New Zealand, later during the year, which is a significant acceleration over plan,' he added.

Biocon's research services arm Syngene's revenues grew 18 per cent year-on-year to Rs 910 crore.