Biopharmaceutical company Biocon on Friday released its second quarter earnings for the financial year 2023-24 with profit at Rs 172.70 crore, up 111.1 per cent in comparison to Rs 81.80 crore during the corresponding quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 3462.30 crore, up 49.3 per cent as against Rs 2319.70 crore during the same period last year. According to a CNBC TV18 poll, Biocon was expected to record a Q2 profit of Rs 138 crore and revenue for the quarter ended September 2023 was estimated to be at Rs 3653 crore. The company EBITDA stood at Rs 741 crore.
Biocon’s net R&D investments for the quarter grew by 9 per cent to Rs 264 crore, representing 10 per cent of revenues ex-Syngene.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics, said, “Biocon reported a strong revenue growth this quarter of 52 per cent YoY at Rs 3620 crore led largely by a revenue rise of 97 per cent in Biosimilars. Biocon Biologics is now driving the business in North America and most of the Emerging Markets, and integration of the acquired business in Europe and a few remaining countries is expected to be completed during the year. The Generics Business has expanded its geographic manufacturing presence with the acquisition of an oral solid dosage manufacturing facility in the US. Syngene expects Biomanufacturing to drive future growth which will be bolstered by the proposed acquisition of a large scale facility in Bengaluru. The three businesses are focused on their strategic goals aimed at profitable growth, going forward.”
Biocon’s Q2 performance across business verticals
APIs and Generic Formulations business recorded Q2 revenue at Rs 676 crore, up 4 per cent fromRs 652 crore during the same period last year. Business performance during the quarter was led by growth in the Generic Formulations business, resulting from higher statin volumes, as well as contributions from recently launched products in the US. The company launched an in-licensed product, Famotidine oral suspension, used in the treatment of ulcers and gastroesophageal reflux disease (GERD), in the US. In line with its MoW expansion strategy, the business launched its first drug product, Mycophenolic Sodium tablets, in Israel. A contraction in demand for some API products on account of pricing pressures, coupled with phasing of supplies due to a planned maintenance shut down, impacted the performance of the API business.
Siddharth Mittal, CEO & Managing Director, Biocon Limited, said, “In line with our expansion strategy for the North American market, we acquired the US FDA approved oral solid dosage manufacturing facility in the United States, which will enable us to add capacities for new products and better support our customers. Looking ahead, we expect an improved performance in the second half of the fiscal with sustained delivery in Generic Formulations and some recovery in our API business.”
Biocon Biologics reported revenue at Rs 1969 crore, up 97 per cent YoY for Q2FY24, driven by the consolidation of the acquired business and sustained growth from the core business across Advanced and Emerging Markets. Core EBITDA was at Rs 660 crore, up 47 per cent, reflecting healthy margins of 34 per cent. During the quarter, net R&D investments stood at Rs 211 crore, representing 11 per cent of Biocon Biologics’ revenue for the quarter.
Syngene posted Q2FY24 revenue at Rs 910 crore, up 18 per cent (YoY) from Rs 768 crore in Q2FY23. The quarter witnessed positive performances across all divisions led by Development and Manufacturing Services, while the Dedicated Centers business showed sustained growth. The Manufacturing Services vertical reported good progress on the back of their biologics manufacturing agreement with Zoetis. Syngene continued to invest in capacity building and commissioned a state-of-the-art, digitally enabled Quality Control laboratory to support the growing biologics operations. It also commissioned a non-GMP facility in Bengaluru to add to its capability of doing early-phase development projects in an agile and cost-effective manner.