Biocon's Q3 profits rise by 65% to Rs 171 cr

The company's businesses in Japan, emerging markets have been witnessing high growth

Biocon, India’s largest biopharma firm, has said that its profits have jumped by 65 per cent to Rs  171 crore in the quarter ended December, and its revenues have increased by 32 per cent to Rs 1,092 crore.

The Bengaluru-based firm saw its operating margins, calculated as sales minus expenditure, at 30 per cent, owing to the significant increase in licensing revenue.

Last year, the company had reported profits worth Rs 104 crore while drawing a revenue of Rs 829 crore in the same period.

“Our strong performance in Q3FY17 was led by robust growth of our Biologics business with both insulins and biosimilar MAbs gaining traction in Japan and key emerging markets. The commercialisation of our Malaysian facility was a key milestone this quarter,” said Kiran Mazumdar Shaw, chairperson and managing director of Biocon.

Biocon had, in January last year, received acceptance of its biologics license application (BLA) for the proposed biosimilar Trastuzumab from the US Food and Drug Administration (USFDA). The marketing authorisation application (MAA) for Insulin Glargine was also accepted by the EMA in the quarter.  These developments have strengthened Biocon’s position as a front runner in the arena of biosimilars.  

“Our Small Molecules and Research Services businesses also reported strong growth this quarter” Shaw said. 

Biocon has also won a three-year contract from Malaysia’s health ministry for supplying rh-insulin cartridges and reusable insulin pens.

Net R&D spends during the quarter stood at Rs 85 crore, an increase of 25% year-on-year. Estimates suggest that the company's R&D spendings in the third quarter of FY17 stood at Rs 100 crore, largely on account of the clinical advancement of several of our programmes, it said.

Biocon said it has finalised the clinical plan to progress Insulin Tregopil and will file a Clinical Trial Application (CTA) with the Indian regulator to clinically validate its promise as orally delivered, rapid acting prandial insulin.

The company stock closed 0.09% or Rs 0.85 lower at Rs 998.40 on the Bombay Stock Exchange on Tuesday.