 "Biocon")
Bengaluru-based biopharma firm Biocon reported a 57 per cent year-on-year (Y-o-Y) drop in its consolidated net profit in the fourth quarter of financial year (FY) 2023-24.
Consolidated net profit before exceptional items for the fourth quarter of FY24 stood at Rs 144 crore. It was Rs 335 crore in the same quarter of the previous year.
This was also way lower than the consensus estimate of Rs 164.3 crore, according to Bloomberg.
The company reported a 0.94 per cent Y-o-Y growth in net revenue at Rs 3,966 crore, beating analyst estimates of Rs 3,890 crore. The performance in Q4FY24 was driven by the Biologics segment.
Reported consolidated net profit stood at Rs 136 crore from Rs 313 crore in Q4FY23.
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Ebitda dropped 8 per cent at Rs 916 crore representing an Ebitda margin of 23.4 per cent. The Board of Directors has recommended a final dividend of Rs 0.50 per share at the rate of 10 per cent of the face value of the share, for the financial year ended March 31, 2024.
Biocon has re-appointed Kiran Mazumdar Shaw as an Executive Director of the company for a further period of five years starting April 2025.
“The Biocon Group has strengthened business operations, expanded global reach and is now increasingly well positioned to deliver a new phase of growth spanning Biosimilars, GLP-1 peptides and CDMO services,” said Shaw, Executive Chairperson, Biocon and Biocon Biologics.
Biocon’s Generics business saw modest FY24 growth, even as its Generic Formulations posted a robust 36 per cent increase, driven by strong demand for statins and immunosuppressants across various regions.
“Our preparations for entering the GLP-1 market opportunity is building momentum and we are pleased with the recent approval of Liraglutide in the UK, making Biocon the first generics Company to be approved for this product in an ICH or major regulated market.
“More importantly, the approval validates our scientific and development capability in bringing vertically integrated, complex peptide drug-device products to the market. This augurs well for us to capture GLP-1 opportunities that will drive our future growth,” said Siddharth Mittal, CEO & Managing Director, Biocon.
“Our focus in FY25 will be directed towards launching new products and expanding our geographic reach through a direct presence and strategic partnerships. We will continue to focus on multiple cost improvement initiatives. We also intend to build upon our initial regulatory success in our peptide and GLP-1 focused pipeline in strategic markets,” added Mittal.
Biocon successfully integrated the acquired business a year ahead of schedule, ensuring business continuity and seamless experiences for patients, customers, and partners. The R&D pipeline progressed as planned, securing US and Canada market entries for two new products to accelerate future growth.
“During the year, we reduced our acquisition debt. We also entered into a long-term strategic collaboration to distribute our products in India while retaining exclusive supply rights. FY24 has been a transformational year as we leverage our expanded global reach to address patient needs globally and unlock value for the benefit of all stakeholders,” said Shreehas Tambe, CEO & Managing Director, Biocon Biologics.
Revenue performance was affected due to a slow-down in demand for research and development services in the US biotech sector, attributed to challenging funding conditions.
In May 2024, Biocon signed a semi-exclusive distribution and supply agreement with Medix, a specialty pharmaceutical company in Mexico, to commercialise its drug Liraglutide (gSaxenda) for chronic weight management. Aligning with its regional expansion strategy, the company won tenders in the UK, Scotland, Singapore, and Saudi Arabia.
Biocon’s Syngene International posted a Q4 FY24 profit of Rs 189 crore, up 6 per cent YoY. However, revenue fell 8 per cent to Rs 917 crore due to reduced demand for R&D services in US biotech, affected by a challenging funding environment, leading to a lower-than-expected performance. Syngene is optimistic about recent US biotech funding, anticipating increased demand for R&D services and forecasting revenue growth in the latter part of the year.
Biocon declared its earnings after market hours on Thursday. Ahead of the earnings, its shares were down 1.81 per cent to close at Rs 305.9 on the BSE.
