Biocon’s H1 FY-09  sustains growth in challenging conditions

EBITDA Rs. 168 crores. PAT Rs. 100 crores (Excluding MTM  Loss  of Rs. 60 crores)

Bangalore, October 16th, 2008

Biocon Limited today announced its financial performance for the half year ending September 30th, 2008.
PERFORMANCE HIGHLIGHTS:

•  Group Revenues (including AxiCorp) increased 33% from Rs. 553 crores in H1 ’08 to Rs. 734 crores in H1 ’09. Pharma sales (excluding licensing income and Axicorp) registered 21% growth bolstered by a 36% growth in our retail healthcare business.
• Syngene had a strong quarter delivering 21% sales growth on a QoQ basis in FY’09 and 9% YoY growth in H1 FY’09.
• AxiCorp made a modest debut in the Group’s profitability but contributed Rs. 141 crores to the top line.
• Licensing income in H1 was moderate at Rs. 3 crores. This is expected to increase    significantly in H2.
• Biocon’s balance sheet remains strong. Net cash as on 30th September ‘08 was Rs. 30 crores (Gross - Rs. 355 crores) .
• Clinical development of the company’s lead programs viz. IN105 (Oral Insulin) and T1h (Anti CD6 Monoclonal antibody) are progressing well.  Oral Insulin will commence Phase III Clinical Trials shortly.
• Biocon filed 11 new patents in Q2 ’09 bringing the total tally to 892 filed and 166 granted patents.
• Biocon has been ranked the 7th largest  global employer in the Biotechnology sector  by a reputed US trade journal. 

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

“Biocon’s H1 ’09 performance has shown resilience despite being impacted by Rupee volatility which has seen us make a Mark to Market provision of Rs. 60 crores. At a time when global businesses are challenged with an economic downturn, we believe that our strong financial base gives us a significant advantage.  Q2 FY’09 has seen us deliver the highest ever revenues across all divisions. Our API business has registered a 21% YoY growth bolstered by 36% growth in our retail branded formulations. Syngene has had a particularly strong quarter delivering its best ever sales and operating profit. 

Clinigene continues to carve a niche for itself in the CRO segment where India is emerging as an important global destination for clinical development.

We are making excellent progress on the research front with our Oral Insulin IN 105 program, set to enter Phase III Clinical trials and our Anti-CD6 Monoclonal antibody nearing the completion phase for patient enrollment.
We remain confident of delivering a good performance for the year.”

CORPORATE DEVELOPMENTS:

NeoBiocon launched  Abraxane in the GCC markets on  9th October, 2008
Biocon’s JV in Abu Dhabi, NeoBiocon announced the launch of ABRAXANE® (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) in the UAE for the treatment of breast cancer after failure of combination therapy for metastatic disease or relapse within six months of adjuvant chemotherapy. 

ABRAXANE is now available in the UAE as a single-use 100 mg vial (as a lyophilized powder, to be reconstituted for intravenous administration).

The UAE is witnessing an alarming increase in Breast Cancer which is mirrored across the GCC region with 20% of women between the age group of 35-65 exhibiting a risk propensity for Breast Cancer. 

In August 2007, Abraxis established a licensing agreement with Biocon for the commercialization of ABRAXANE in India.  Under the terms of the agreement, Biocon has the right to market ABRAXANE in India, Pakistan, Bangladesh, Sri Lanka, the United Arab Emirates, Saudi Arabia, Kuwait and certain other South Asian and Persian Gulf countries.  Subsequently, Abraxis received approval in October 2007 from India’s Drug Control General to market ABRAXANE in India.

Biocon is ranked 7th largest global employer in the Biotechnology sector  by Med Ad News

Biocon has been ranked as the 7th largest employer amongst the top global biotechnology companies, according to a report released by Med Ad News. The report takes into consideration drug based firms, as these companies provide the best numbers to track the progress of the sector. Companies have been ranked by number of employees and Biocon Limited is the only Asian company to feature in the Top 25 at Number 7.  BIO 2008, held in San Diego recently, stated that the global biotechnology industry will be a $100 billion annual business by 2010. The actual revenue has reached $85 billion in 2007. There are close to 5000 biotech companies across the globe. The top 25 biotech companies represent 62 percent of all biotech sales and probably over 90 percent of income. Biocon has been ranked the 20th leading global Biotech company and the only Asian company to feature in the Top 25.
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 Limited Clinigene International Limited and Biocon SA and its 71% subsidiary Axicorp GmbH and its 51% joint venture Biocon Biopharmaceuticals Private Limited.

About Biocon
Established in 1978, Biocon Limited is one of India’s premier biotechnology companies. Biocon, its two wholly owned subsidiary companies, Syngene International Ltd and Clinigene International Ltd and its Joint Venture Company Biocon Biopharmaceuticals Pvt Ltd  form a fully integrated biotechnology enterprise, specializing in biopharmaceuticals, custom research, and clinical research. With successful initiatives in clinical development, bioprocessing and global marketing, Biocon delivers products and solutions to partners and customers across the globe. Visit us at www.biocon.com

Biocon Limited Contact:

Paula Sengupta
20th K.M - Hosur Road,
Electronic City P.O.,
Bangalore 560 100
Tel: +91 80 2808 2808
Fax: +91 80 2852 3423
Email: paula.sengupta@biocon.com

Sonia Sharma/ Guna Shekhar
Tel: +91 80 40429000

Email : ssharma@brodeurindia.com
vguna@brodeurindia.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, nor any of our 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.