Biocon's Profit Surges Six-Fold in Q1 FY24 on Strategic Collaboration Gains

Biocon reported a six-fold increase in consolidated profit after tax for Q1 FY24, primarily driven by a one-time gain from its collaboration with Eris Lifesciences. Revenue from operations remained stable, and the company looks forward to new product launches and improved business prospects in the second half of FY25.

Biotechnology giant Biocon announced on Thursday that its consolidated profit after tax skyrocketed over six times to Rs 660 crore in the first quarter ending June 2024. This sharp increase resulted from a one-time gain linked to its strategic collaboration with Eris Lifesciences.

In comparison, the Bengaluru-headquartered company had reported a profit after tax of Rs 101 crore during the same quarter in the previous fiscal year. Revenue from operations for this period stood at Rs 3,433 crore, marginally up from Rs 3,423 crore a year earlier, according to a regulatory filing.

The Q1 figures included Rs 1,057 crore in proceeds from the collaboration with Eris Lifesciences, the company revealed. Executive Chairperson Kiran Mazumdar-Shaw attributed the strong performance primarily to this one-time gain, while noting that the underlying business metrics were in line with expectations.

Mazumdar-Shaw expressed optimism for the remainder of the fiscal year, anticipating robust growth in the second half of FY25. This growth is expected to be fueled by new product launches in the biosimilars and generics segments, including Liraglutide for diabetes and obesity in the UK and other international markets.

Additionally, the company expects brighter prospects for its subsidiary, Syngene, buoyed by a rejuvenated biotech funding environment in the United States, she stated.

Biocon also addressed recent GMP inspections by the US Food and Drug Administration at its API facilities in Visakhapatnam, where minor observations were made. The company has responded with a Corrective and Preventive Action (CAPA) plan and has received an Establishment Inspection Report (EIR) for one of the sites, while awaiting feedback on the other.

Shares of Biocon closed 2.25% down at Rs 339.20 on the BSE following the announcement.