Biocon Q3 net profit zooms over twofold to Rs 217.2 cr

Kiran Mazumdar-Shaw | Company: Chairperson, Biocon | Net worth: $4.6 billion | She added $2.22 billion to her wealth, taking her net worth to $4.6 billion in 2020, from $2.38 billion in 2019. It marked the highest gain in percentage terms at 93.28 percent among India's 100 richest persons. (Image: Reuters)

Biopharmaceutical firm Biocon's net profit more than doubled in the third quarter ended December 31, beating analysts' estimates largely led by strong performance of the biologics business.

Net profit rose 136.34 percent to Rs 217.2 crore in the Oct-Dec quarter compared with a profit of Rs 91.9 crore in the same period of previous year.

Total revenue for the quarter grew 43.5 percent to Rs 1,566.4 crore in the third quarter on YoY basis.

Analysts polled by Reuters estimated Biocon's net profit at Rs 176 crore for the third quarter.

The gross spend on research and development rose 12 percent to Rs 106 crore on YoY basis.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at 26 percent for Q3FY19 compared to the previous year's 23 percent.

“We have delivered the highest ever Revenue and Profit growth in absolute terms in Q3FY19, driven by strong business performance," said Kiran Mazumdar-Shaw, Chairperson and Managing Director of Biocon.

"Our Biologics segment more than doubled in revenue and recorded an EBIT margin of 30 percent driven by increased penetration of our Pegfilgrastim in the U.S. Small Molecules, Branded Formulations and Research Services also registered a robust growth this quarter," Mazumdar-Shaw said.

Revenues from the biologics vertical, that comprises biosimilars, rose 136 percent to Rs 449 crore driven by the biosimilar Pegfilgrastim gaining market share in the US and sustained sales momentum of trastuzumab and insulins in key emerging markets.

Biocon's partner Mylan launched Fulphila or biosimilar Pegfilgrastim in July 2018. In terms of volumes, Fulphila market share rose to 15 percent.

“Our biosimilars strategy is beginning to pay off with the launch of our biosimilars in the US and EU and we are greatly encouraged by the recent regulatory approvals of our key biosimilars in advanced markets like EU, Australia and Canada," Mazumdar-Shaw added.

The sales of small molecules that constitute active pharmaceutical ingredient (APIs) and generic formulations, grew 27 percent to Rs 469 crore in Q3, led by sales of key APIs including immunosuppressants, and statins.

Biocon said the generic formulations business in the US continued to record robust growth.

"We successfully launched Atorvastatin Calcium tablets in the US and continue to gain traction for previously launched Rosuvastatin and Simvastatin formulations in this market," the company said.

The branded formulations business, which includes sales in India and the UAE, reported a revenue of Rs 212 crore, a YoY increase of 36 percent.

The Research Services business that’s housed under listed subsidiary Syngene International registered a growth of 20 percent to Rs 467 crore, buoyed by the performance of discovery services and increased traction in the dedicated R&D centres.

Shares of Biocon rose marginally 0..04 percent to close at Rs 670.55 on BSE, the benchmark Sensex gained 0.24 percent to end 36,195.10 points.