Biocon consolidated net profit dips 18 pc to Rs 138 cr in Q2
Biotechnology major Biocon on Friday said its consolidated net profit declined by 18 percent to Rs 138 crore for the second quarter ended September 30.
The Bengaluru-based company had reported a net profit of Rs 169 crore in the July-September quarter of the previous fiscal.
Revenue from operations, however, increased by 5 percent in the second quarter to Rs 1,840 crore from Rs 1,750 crore in the year-ago period, Biocon Ltd said in a statement.
The company stated that it has made provisions under exceptional items regarding modification of the optionally convertible debentures of a PE investment in Biocon Biologics, and reversal of Services Export Incentive Scheme (SEIS) claims relating to a prior period.
Net Profit for the second quarter, before such exceptional items, stood at Rs 188 crore, up 11 percent from the year-ago period, it added.
''With the waning pandemic and improvements in supply chain conditions, I believe all three business segments, Generics, Biosimilars and Research Services, are well-positioned for sustained growth in H2FY22," Biocon Ltd Executive Chairperson Kiran Mazumdar-Shaw stated.
The company noted that its entry into vaccines and novel antibodies for infectious diseases, which are a natural adjacency to its biosimilars business, will be a future growth driver for its subsidiary Biocon Biologics.
The company stated that Biocon Biologics has submitted a Corrective and Preventive Action Plan (CAPA) to the US FDA, in response to the pre-approval inspection of its manufacturing facility in Malaysia, for Aspart, held in September.
''We believe this will not impact the commercialization plans for bAspart in the US,'' it added.
During the quarter, the company also made regulatory filings for some of the key biosimilars in emerging markets in the LATAM (Latin America) and AFMET (Africa, Middle East, and Turkey) regions, which will fuel the company's future growth, Biocon stated.
Biocon CEO & Managing Director Siddharth Mittal noted that the generics business witnessed a muted performance for the quarter as the company encountered continuing pricing pressure in the US for formulations portfolio and a slower-than-expected ramp-up of demand for some of the key Active Pharmaceutical Ingredients (APIs).
''Operational and supply challenges in the earlier part of the quarter also impacted the performance of the API business. There was advance buying by customers in the corresponding period of the previous fiscal, apprehending COVID-related disruptions and is reflected in the year-on-year decrease in revenues,'' he added.
The company continues to make progress on expanding its formulations portfolio with the launch of Everolimus tablets in the US in October, which reaffirms its commitment to establish a strong global footprint of complex formulations to treat chronic conditions, Mittal stated.
''Looking ahead, we will stay focused on our capacity enhancement projects along with several other strategic initiatives to increase operational efficiencies, which will help us deliver on our mission to make affordable healthcare accessible,'' he said.
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