Biocon Q3 net profit dips 7 pc to Rs 203 cr

Biotechnology major Biocon on Thursday reported a 6.62 per cent fall in consolidated net profit at Rs 202.8 crore for the quarter ended December 31, 2019 due to higher research and development (R&D) expenses and tax impact of an exceptional item. The company had posted a net profit of Rs 217.2 crore during October-December period of the previous fiscal, Biocon said in a filing to the BSE.

The company's consolidated revenue from operations, however, rose to Rs 1,748.1 crore for the quarter under consideration as against Rs 1,540.8 crore in the same period a year ago. Its expenses rose to Rs 1,465.6 crore for the quarter ended December 2019 as against Rs 1,295.4 crore in the year-ago period. "We witnessed a strong revenue growth of 14 per cent to Rs 1,784 crore in Q3FY20, led by Biologics, Small Molecules and Research Services businesses," Biocon Chairperson and MD Kiran Mazumdar-Shaw said.

Biocon continued its journey of increasing access to high quality biosimilars and commercialised its biosimilar Trastuzumab in US, Canada and many EU markets this quarter, she added. "Importantly, we have initiated value unlocking of our biosimilars business with the dilution of a minority stake to True North for a primary equity investment of around USD 75 million, which gives a pre-money equity valuation of around USD 3 billion for Biocon Biologics. We plan to raise further capital at an opportune time in the near future," Mazumdar-Shaw said.

"During the quarter ended December 31, 2019, the company has entered into a License Agreement with Bicara, a wholly owned subsidiary, pursuant to which the company has granted a license to develop, manufacture and commercialize fusion proteins," Biocon said. Tax impact of Rs 19.2 crore on gain of such licensing has been recorded in the financial results which is included within tax expense, it added.

Net R&D expenses for the quarter at Rs 131 crore was up by 71 per cent from the year-ago period, Biocon said. The company's board has approved the appointment of Kiran Mazumdar-Shaw as Executive Chairperson of the company for a period of five years, effective April 1, 2020, it said.

The board also approved the change in designation of Siddharth Mittal from Joint Managing Director to Managing Director of Biocon Ltd effective April 1, 2020, it added. Shares of Biocon on Thursday closed 0.50 per cent higher at Rs 294.20 per scrip on the BSE.