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Biocon's FY 2005-06 Performance in line with expectations in a very competitive year


Bangalore, April 20, 2006

Revenues Rs. 793 crs : EBITDA Rs. 234 crs : PAT Rs. 174 crs

Biocon Limited today announced its financial performance for the financial year ended March 31, 2006.

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

FY 2006 (April 2005 - March 2006) v/s FY 2005 (April 2004 - March 2005)

  • Total income increases by 9 % to Rs. 793 crores.
  • Operating profits decline marginally by 2% to Rs. 234 crores.
  • Operating margins at 30% for the year.
  • PAT declines 12% to Rs. 174 crores.
  • Earnings per share at Rs.17.40 for the year.
  • RND investment increases by 76% to Rs. 76 crores.
  • Dividend increase from 40% to 50% (Rs. 2.50 per share) recommended by the Board.

Q4 2005-06 shows a 20% top line growth (Rs. 215 vs 178 crores) and 13% growth in PAT (Rs. 48 vs 42 crores) over the corresponding quarter for the last fiscal.

Revenue analysis

Revenues from the biopharmaceuticals and enzymes business grew 6% to Rs. 688 crores from Rs. 647 crores, contributing 87% to operating revenues in FY 2006.

Revenues from Research Services grew 52% to Rs. 100 crores from Rs. 66 crores. contributing 13% to operating revenues in FY 2006.

Outlook

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

"I am pleased that we have sustained a healthy 30% operating margin for the Financial Year 2005-06 despite a fiercely competitive environment. This enables us to continue to invest in our discovery led research programs. The recent acquisition of the NOBEX portfolio has significantly enhanced our IP assets both in terms of patents as well as proprietary technologies which will play a key role in our innovation strategy for the future. The year ahead is also expected to see us entering the Oncology market with our novel antibody product, BIOMAB-EGFR for the treatment of head and neck cancers.

We believe our balanced portfolio of products and services will deliver superior shareholder value over the medium and longterm.

The year ahead will continue to be challenging due to uncertainties in market conditions and the impact of depreciation at our new facilities at Biocon Park. However, we expect Insulin to gain market share both in India and overseas markets. This, together with branded formulations and research services, will drive growth.

It is important to reiterate that the Biotechnology sector needs to be evaluated on a medium to long term basis given the gestational nature of RND investments and regulatory time lines.

Biocon is rapidly transforming itself from a generics API manufacturer into an innovator company that is developing a robust pipeline of new molecules. We believe that this strategy will deliver strong and sustainable growth in the future."

CORPORATE DEVELOPMENTS

Biocon acquires NOBEX IP assets

Biocon acquired the assets of Nobex Corporation for US$5 million in March 2006. This strategic acquisition provides Biocon with a valuable IP platform and full ownership of the Oral Insulin and Oral BNP programs. It also provides the Company, access to 300+ patents related to a novel platform technology focused on oral peptide delivery in the metabolic and cardiovascular segments. Biocon plans to leverage these proprietary assets through a combination of licensing and co-development partnerships.

Management Appointments

Dr. Arun Chandavarkar has been appointed Chief Operating Officer of Biocon Limited effective 1st April, 2006.

Mr. Ajay Bhardwaj, President , Marketing will be leaving Biocon shortly to pursue personal interests. Biocon wishes him all success.

Mr. Rakesh Bamzai has been appointed President, Marketing of Biocon Limited effective 1st April, 2006.

Biocon signs MOU with Karolinska Institute, Sweden

Biocon entered into an MOU with the prestigious Karolinska Institute, Sweden to collaborate on the following:

  1. Partnering in product development
  2. Joint PhD studies at Karolinska Institute
  3. Joint Research programs between Karolinska Institute and Biocon
  4. Scientific symposia in India sponsored by Biocon in association with Karolinska Institute
  5. Clinigene to move to a dedicated new facility in Electronics City

Clinigene will move to a state of the art new 65,000 sft facility that is being established at Electronics City, Bangalore.
This will enable Clinigene to expand its current operations.

Biocon Biopharmaceuticals inaugurated

Shri P Chidambaram, Union Minister of Finance inaugurated a state of the art multi-product Biologics facility on 17th April 2006.

Commercial operations will commence in Q2 of FY 2007. The plant will manufacture a range of products encompassing monoclonal antibodies and other recombinant therapeutics.

About Biocon
Established in 1978, Biocon Limited is one of India's premier biotechnology companies. Biocon and its two subsidiary companies, Syngene International Ltd and Clinigene International Ltd form a fully integrated biotechnology enterprise, specializing in biopharmaceuticals, custom research, clinical research and enzymes. With successful initiatives in clinical development, bio-processing and global marketing, Biocon delivers products and solutions to partners and customers across the Globe. Visit us at www.biocon.com

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, nor our Directors, or 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.


 

 

 
 
 
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