Biocon's Q3 revenue up 10%; banks on obesity drugs for future growth

Revenue from the generics unit fell 2.4%, while revenue from its research services business rose 11%.

Biopharma company Biocon reported third-quarter consolidated revenue from operations on Thursday that increased by about 10% when compared with the year-earlier period, adjusting for the revenue from its domestic branded formulation business that has since been divested.

The Bengaluru-based company, which counts the US as its key market, reported revenue from operations of Rs 3,821 crore ($441.39 million) for the quarter.

Revenue from Biocon's biosimilars business, its largest, rose 14 percent to Rs 2,289 crore, on a like-to-like comparison with the previous year's quarter. Biosimilars are copies of high-priced drugs used to treat illnesses such as rheumatoid arthritis and cancer.

Its generics division, however, has been under pressure due to pricing challenges and a planned facility shutdown, the company said in November.

Revenue from the generics unit fell 2.4%, while revenue from its research services business rose 11%.

Biocon, which expects a recovery in its generics business in the next few quarters, is banking on its portfolio of obesity drugs, which have seen skyrocketing demand in global markets.

The company reported a consolidated net profit of 251 million rupees in the third quarter, compared with 6.6 billion rupees a year earlier when it had recorded gains related to dilution of Biocon's stake in its associate company Bicara and the divestment of its domestic formulation business.

The company's quarterly results were also impacted due to tax expenses, Biocon said.

The company increased its equity shareholding in its biologics unit by 1.5% for 5.6 billion rupees and expects the purchase to be completed by next month.