Note: The discussions in this release reflect the audited financial performance of Biocon Limited based on Indian GAAP on a consolidated basis. This considers the financial performance of Biocon Limited, its wholly owned subsidiaries Syngene International Private Limited and Clinigene International Private Limited and its 51% joint venture Biocon Biopharmaceuticals Private Limited.


PERFORMANCE HIGHLIGHTS

FY2004 (April 2003 - March 2004) v/s FY2003 (April 2002 - March 2003)
Total income increases by 94% to Rs. 5,493 million from 2,833 million.
Operating profits move up 142% to Rs. 1,795 million from Rs. 741 million.
Operating margins higher by 654 basis points at 33% for the year.
PAT increases 219% to Rs. 1,386 million from Rs. 435 million
Net margins expand from 15% to 25%.
Earnings per share at Rs. 16 for the year.
Dividend of 20% (Rs. 1 per share) recommended by the Board.

Revenue analysis

Revenues from the biopharmaceuticals business improve by 117% to
Rs. 4,354 million from Rs. 2,007 million, contributing 79% to operating
revenues in FY 2004 compared to 71% in FY 2003.
Revenues from statins increase 153% to Rs. 3,028 million from Rs. 1,199
million
Revenues from custom and clinical research higher by 40% to Rs. 388
million from Rs. 277 million.
Revenue growth spearheaded by strong performance in the U.S. and
European markets - exports grow 151% in FY 2004, contributing 63% to
overall revenues compared to 48% in FY 2003.

Commenting on the results, Kiran Mazumdar-Shaw, Chairman & Managing Director, Biocon Limited , said:

"I am delighted to report an outstanding performance for the Financial Year ended 31st March, 2004. All our key businesses, viz. statins, enzymes and research services demonstrated exceptional growth.

The numbers reported today reflect the success of strategic capital investments made two years ago. We expect our current expansion program to deliver substantial growth in the near future.

Our R&D programs are creating a pipeline of exciting products and technologies that are rapidly transforming Biocon into a discovery-led enterprise.

Our outlook for the year ahead is very positive. We expect substantial growth to be delivered by sales of Pravastatin to Europe and from our new products including Insulin, Immunosuppressants and branded formulations. Research services will also be a key growth driver."

CORPORATE DEVELOPMENTS

Biocon signs letter of intent for supply of recombinant human insulin to Bristol Myers Squibb
Biocon is one of the few companies globally that have scaled up recombinant human insulin to a commercial scale. Biocon has completed Phase III clinical trials and is currently awaiting regulatory approvals for Insugen, which is slated to be launched in Q2 FY 2004..

Biocon has signed a letter of intent to export recombinant human insulin to Bristol Myers Squibb. Biocon is also the first Indian Company to have filed a DMF with the USFDA for recombinant human insulin.

Biocon launches branded formulations in the domestic market
Biocon has recently launched a range of branded formulations targeted at the cardio-diabetes therapeutic segment. This includes 11 formulations based on Atorvastatin, Glimeperide, Losartan and Ramipril.

U.S. FDA acceptance for Biocon's statins and pioglitazone manufacturing facilities
Biocon has received U.S. FDA acceptance for its pravastatin, simvastatin, lovastatin and pioglitazone manufacturing facilities. This acceptance allows Biocon to access the lucrative US$ 6 billion market slated to go off patent in the United States in 2006. Biocon has already established itself as a leading exporter of lovastatin to the U.S. and simvastatin to Europe.

Human Pharmacology Unit launched by Biocon subsidiary Clinigene
Biocon's clinical research focused subsidiary Clinigene inaugurated a state-of-the-art Human Pharmacology Unit at Sagar Apollo Hospital at Bangalore. The unit will enable Clinigene to conduct Phase I clinical trials and bio-availability (BA) and bio-equivalence (BE) studies on healthy human volunteers in compliance with global ethical and regulatory standards.

Biocon subsidiary Syngene to commission a new research facility
Biocon's subsidiary Syngene is close to completion of an 80,000 square foot facility to cater to its expanding needs of providing research services to a global clientele. Currently, outsourced pharma research presents a substantial global opportunity for high quality service providers and Syngene's expertise and track record make it ideally positioned to capitalise on this opportunity.

Biocon's IPO subscribed 32 times
Biocon's recently floated initial public offering received overwhelming response from all categories of investors. Demand in excess of Rs. 100 billion was recorded, leading to subscription of over 32 times the offering amount. The issue price was discovered at the upper end of the indicative Rs. 270 - Rs. 315 band through a 100% book building process. The IPO constituted 10% of Biocon's post-issuance share capital that now stands at Rs. 500 million (100 million fully paid up equity shares with face value of Rs. 5 each). IPO proceeds are to be utilised in a capacity expansion programme for statins and research services.

About Biocon

Established in 1978, Biocon Limited is India's premier biotechnology company. Biocon and its two subsidiary companies, Syngene International Pvt Ltd and Clinigene International Pvt Ltd together with its Joint Venture Company Biocon Biopharmaceuticals Pvt Ltd form a fully integrated biotechnology company, specializing in biopharmaceuticals, custom research, clinical research and enzymes. With successful initiatives in clinical development, bioprocessing and global marketing, Biocon delivers products and solutions to partners and customers across 50 countries. Visit us at www.biocon.com

Disclaimer

Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others general economic and business conditions in India, our ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currency changes, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing competition in and the conditions of the Indian biotechnology and pharmaceuticals industries, changes in political conditions in India and changes in the foreign exchange control regulations in India. Neither our company, our directors, any member of the syndicate nor any of their respective affiliates have any obligation to update or otherwise revise any statements reflecting circumstances arising after this date or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

For further information contact:

Paula Sengupta
Biocon Limited
Tel: +91 80 2852 3434
Fax: +91 80 2852 3423
Email: paula.sengupta@biocon.com


End: Summarised Consolidated Profit & Loss Statement