Biopharma major Biocon has reported a lower-than-expected growth in net profit at 7% to R70 crore for the first quarter ended June 30, 2011, on account of a drop in licensing income. Kiran Mazumdar-Shaw, chairman and managing director, Biocon, said, ?There has been lower licensing income recognition this quarter. This is as per plan and is expected to ramp up in the quarters ahead.? Compared with last quarter, licensing income shrunk by almost 50% from R32 crore.
Including Axicorp, Biocon?s former drug distribution subsidiary which was divested earlier this quarter, PAT plunged 9% annually to R77 crore. Biocon?s licensing income, which contributes to its biopharmaceuticals division, came down drastically from R21 crore to R14 crore annually. ?Inherent variability in licensing income linked to development and regulatory timelines requires this to be viewed on an annualised basis,? Mazumdar-Shaw added. Biocon’s consolidated revenues grew 11% y-o-y to R454 crore. EBITDA, at R133 crore, grew 12% y-o-y, while operating margin stood at 29%. Earnings per share declined to R3.5, against R3.84 a year ago.
However, the company stated that its services business performed well, with its contract research units registering a 22% growth in revenue y-o-y. ?Our services business, led by Synegene and Clinigene, had a particularly strong quarter, signaling the success of our integrated business model that offers end-to-end services,? said Mazumdar-Shaw.
On the licensing front, Biocon said it had initiated partnering discussions for its oral insulin product, Itolizumab (Anti CD6 Mab), which it expected to realise this quarter. It also expected to commence supplies of Insulin and Glargine to Pfizer for its India market launch in the second quarter, as per the licensing agreement the two companies had entered into last fiscal.