Biocon grown by 64% in net profit at Rs 213.7 cr during fourth quarter

  • Posted on: 26 April 2019
  • By: PharmaTutor News

 

Biocon Ltd announced its consolidated financial results for the fourth quarter and fiscal year ended March 31st, 2019. Biocon Biologics revenue nearly doubled, led by biosimilars portfolio performance in developed and emerging markets. Branded Formulations India business reported a strong double digit growth which was offset by a decline in UAE. Generic Formulations business grew multi-fold off a low base, reflecting our focus on vertical integration in the Small Molecules business. Research Services subsidiary Syngene crossed the Rs 500 Crore Revenue milestone with a Net Profit milestone of Rs 100 Crore in Q4 on a standalone basis.

The Q4FY19 revenue growth was largely led by a robust performance by Biologics and Research Services, supported by a double digit growth in Small Molecules. The Biologics segment revenue grew 87% to Rs 451 Crore driven by strong sales of our biosimilars Pegfilgrastim and Trastuzumab in developed and emerging markets.

Biocon also launched their biosimilar Trastuzumab in a few more emerging markets this quarter. The product continues to gain traction in key markets of Latin America and AFMET regions. The Small Molecules business reported a growth of 11% led by a robust performance by Generic Formulations and steady sales of APIs. The strong performance of Generic Formulations was driven by increased traction in Statins sales in the U.S.

The Branded Formulations business, which includes sales in India and UAE, was adversely impacted due to headwinds in UAE. However, the business in India reported a strong performance led by double-digit growth in Metabolics, Critical Care, Immunotherapy and Market Access divisions.

Research Services reported a robust growth of 30% YoY with revenue at Rs 534 Crore on account of sustained growth in the Discovery and Development Services segments. On a standalone basis Syngene crossed the Rs 500 Crore Revenue milestone with a Net Profit milestone of Rs 100 Crore in Q.4.

Kiron Mozumdor-Show, Chairperson & Managing Director of Biocon said that, our Q4 FY19 performance was led by robust growth in our Biologies and Research Services business segments, supported by a significant growth in the Small Molecules business.

She further added that, "On an annual basis, our Revenue grew 31% to Rs 5,659 Crore, and Net Profit soared 143% to Rs 905 Crore. FY19 was a landmark year for the Biologies business, which reported a growth of 97%, thus emerging as a key driver for Biocon's incremental growth. Our three strategic business segments Small Molecules, Biologies and Research Services have reported a top-line of over Rs 1,500 Crore each this fiscal. A higher share of Biologies revenue boosted profitability as reflected in the consolidated EBITDA margin of 27% for the full year despite a 34% increase in Net R&D expenses."

During FY19, Research Services revenue grew 28% to Rs 1,826 Crore driven by robust performances in both Discovery Services and Dedicated R&D Centre business. During the year, Syngene further expanded its customer base as well as extended its existing client relationships taking the total active client base to over 330. The expansion of ongoing strategic collaboration with Baxter Inc. led to the commissioning of additional infrastructure for Baxter.

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