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| Biocon net profit down 4%... |
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October 21, 2011
Publication : Times of India |
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Bangalore: Biocon's net profit in the quarter ended September, 2011, dropped 4% to Rs 86 crore compared to the corresponding period in 2010-11. Last year's numbers include those of AxiCorp, Biocon's German subsidiary, which it sold earlier this year. Excluding AxiCorp, net profit rose 5%.
Biocon's revenue in the quarter rose 23% to Rs 524 crore.
Material, power and staff costs weighed down the net profit. Staff costs increased 38% to Rs 72 crore, and material and power costs increased 25% to Rs 237 crore.
"The company has seen a good performance in biopharmceuticals. But margins haven't improved even after the AxiCorp divestment," said Saurabh Jain, AVP-equities in SMC Global Securities. EBITDA margin was at 29%.
The biopharmaceuticals business grew 21% to Rs 415 crore, out of which branded formulations, including the diabetology and cardiology divisions, contributed Rs 64 crore, a 30% jump over the September quarter last year. The contract research business comprising of its contract research arm Syngene and clinical trial arm Clinigene posted a 19% growth to Rs 93 crore.
The net realization in licencing income for the first six months of the year dropped to Rs 11 crore, from Rs 44 crore in the corresponding period last year. Kiran Mazumdar-Shaw, CMD of Biocon, said the company had received $100 million from Pfizer as upfront licensing fee. "But we are only recognizing it as we progress development. At the gross level, licensing income grew to Rs 51 crore. But at a net level, because of development costs, we were only able to recognize Rs 11 crore at a PAT level. That makes a big difference to margins as well," she said.
Biocon and Pfizer have entered into a $350 million global agreement for the worldwide commercialization of Biocon's biosimilar versions of insulin and insulin analog products.
Biocon is continuing to discuss with global pharma companies on a partnership for its oral insulin candidate IN-105 and the Anti CD6 Mab programme for psoriasis.
The company said the phase III study in psoriasis will be completed in the first quarter of next year. The company launched a reusable insulin delivery device, Insupen, early this week based on proprietary German technology.
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