Biotechnology company Biocon posted its fiscal first quarter profit at Rs 101.40 crore, down 29.8 per cent as compared to Rs 144.40 crore during the corresponding quarter of FY23, missing estimates. It posted revenue from operations at Rs 3422.60 crore, up 60 per cent as against Rs 2139.50 crore. According to CNBC TV18 estimates, Biocon was expected to post Q1 profit at Rs 169.9 crore and revenue for the quarter ended June 2023 was expected at Rs 3597.7 crore.
The company EBITDA stood at Rs 714.4 crore. EBITDA margin stood at 20.9 per cent in the quarter in review, compared to 18.7 per cent in the corresponding period of last fiscal year. The pharma major posted a total income of Rs 3516.10 crore, up 58.6 per cent from Rs 2217.40 crore. However, it recorded a total expenses during the quarter ended June 2023 at Rs 3299.20 crore, up 66.8 per cent as against Rs 1977.50 crore during the first quarter of FY23.
Biocon’s net R&D investments for the quarter grew by 59 per cent to Rs 315 crore, representing 12 per cent of revenues ex-Syngene. “At a consolidated level, revenues rose 59 per cent YoY to Rs 3516 crore driven primarily by the 106 per cent jump in Biosimilars revenue. Research services revenue rose 25 per cent, and Generics reported 15 per cent growth. R&D investments at Rs 315 crore increased by Rs 117 crore this quarter, reflecting our advancing pipeline, which will support future growth,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics.
Biocon’s Q1 performance across businesses
Biocon’s Generics business posted Q1FY24 revenue at Rs 700 crore, up 15 per cent from Rs 607 crore in Q1FY23. The Generics business secured new contracts and delivered higher volumes from its products in the US, as well as launched new products in key MoW markets, which contributed to the segment’s growth in the quarter. “Our product pipeline continues to advance with an approval for Vigabatrin tablets and a tentative approval for Lenalidomide capsules in the US, and for Mycophenolic acid tablets in Europe. We continue to make investments for future growth, with work having commenced on the expansion of our peptide and fermentation capacities in Bengaluru, with a timeline for completion in the second half of FY25,” said Siddharth Mittal, CEO & Managing Director, Biocon Limited.
Biocon Biologics Q1FY24 revenue was recorded at Rs 2015 crore, up 106 per cent from Rs 977 crore in Q1FY23, led by the strong performance of its key biosimilars in advanced and emerging markets and the consolidation of revenues from the acquired business. Core EBITDA stood at Rs 513 crore. During the quarter, net R&D investments stood at Rs 259 crore, representing 13 per cent of Biocon Biologics revenue for the quarter. “I am pleased to report that Biocon Biologics has delivered a strong revenue growth of over 100 per cent for the first quarter. This was driven by the acquisition of Viatris biosimilars business and growth in market shares for our products in the US and Europe,” said Shreehas Tambe, CEO & Managing Director, Biocon Biologics Ltd.
Syngene reported Q1FY24 revenue at Rs 808 crore, up 25 per cent from Rs 645 crore in Q1FY23, led by development and manufacturing services and well supported by its research divisions: discovery services and the dedicated centers. In manufacturing services, the company continued to make good progress on the long-term contract for Zoetis. In Discovery Services, Syngene acquired 17 acres of land in Genome Valley, Hyderabad, to accommodate future growth, and expects to procure statutory clearances for commencement of construction in 2024. “The key highlights this quarter were: the acquisition of additional biologics manufacturing capacity in Bengaluru; the regulatory approval by the US FDA of the API manufacturing site in Mangaluru; and the land acquisition in Hyderabad for further expansion,” said Jonathan Hunt, CEO & Managing Director, Syngene.