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Informist, Thursday, Jan. 30, 2025

MUMBAI – Biopharmaceutical company Biocon Ltd.'s top line for the December quarter contracted for the first time since the June quarter of 2017 as its consolidated revenue from operations fell 3.4% on year. The company's top line and bottom line for the reporting quarter missed analysts' estimates.

Biocon's consolidated revenue from operations for the December quarter was INR 38.21 billion, lower than analysts' estimate of INR 38.19 billion. Bicon had, in the December quarter of 2023, divested two of its assets. It had gained income from its part-divestment in the December quarter of 2023 and the gain from Biocon's stake dilution in Bicara Therapeutics. Excluding these gains, the company's revenue from operations has grown 10% on year.

Its other income for the December quarter was INR 348 million, compared to INR 5.65 billion in the same quarter a year-ago. The other income for the December quarter of 2023 includes gains from Bicara Therapeutics, along with part-gains from the sale of certain operations to Eris Lifesciences. 

Biocon reported a consolidated net profit of INR 250 million, lower than analysts' estimate of INR 1.07 billion. Adjusting for exceptional items a year ago, Biocon's net profit is INR 130 million, the company said in a press release. 

The Bengaluru-based company's earnings before interest, tax, depreciation, and amortisation was INR 7.87 billion, up 16% on year on a like-for-like basis. Analysts had pegged the figure at INR 8.03 billion. The company's EBITDA margin for the December quarter was 20%, lower than 33% in the year-ago period. 

"Syngene's return to growth, combined with global approvals for bUstekinumab and European approval for gLiraglutide, will pave the way for launches and drive growth in Q4 and beyond. These developments will strategically position the Biocon Group for enhanced long-term growth," Kiran Mazumdar-Shaw, chairperson of Biocon Group, said in a release. 

Biocon spent INR 1.99 billion on research and development during the December quarter, excluding Syngene. The company's tax expenses for the December quarter went up to 748 million, 36% higher than it paid in the corresponding period a year ago.

SEGMENTAL PERFORMANCE

Biocon earned a consolidated revenue of INR 6.86 billion from its generics business for the December quarter, 2.4% lower on-year but up 10% sequentially. Biocon and its European Union-based partner Zentiva got decentralised procedure approval for Liraglutide. This injection is used to lower blood sugar in people with type-II diabetes. EBITDA of the generics business was INR 390 million, Biocon said.

Revenue from its biosimilars business for the December quarter was INR 22.89 billion, up 14% on a like-for-like basis. The segment's EBITDA for the reporting quarter was INR 4.87 billion, up 44% on-year on a like-for-like basis. Research and development investment in this business for the December quarter was INR 1.35 billion, which is 6% of its revenue. 

Syngene's revenue from operations for the December quarter was INR 9.44 billion, 11% higher year-on-year and 6% sequentially. The growth was driven by improved performance in research services and increased traction in biologics, the company said. This segment's EBITDA increased 16% on year to INR 3.02 billion.

MARKET OVERVIEW

In the US, the market share of its oncology drug bTrastuzumab, or Ogivri, doubled to 22% from 11% last year, while the market share of bPegfilgrastim, or Fulphila increased to 23% from 19% a year ago during the December quarter. Market shares of the insulin franchise, which includes Semglee and insulin glargine, was in the mid-to-high teens.

Biocon Biologics' market share in Europe remained steady at the regional level as it saw strong uptake in key markets such as Germany and France. It holds a double-digit market share for products like bAdalimumab or Hulio, in Germany and France. 

"During the third quarter, 14 launches of key commercialised products were accomplished across regions, including bAdalimumab, bEtanercept, bAspart, bGlargine, bBevacizumab, and bPegfilgrastim in key countries of AFMET, LATAM and APAC regions," the company said in a release.

The board of Biocon approved purchasing 1.5% equity share capital in its subsidiary Biocon Biologics for INR 5.55 billion from one of its existing investors. After this purchase, Biocon's stake in its subsidiary will rise to 90.2%. This purchase will be completed on or before Saturday.

The company disclosed its December quarter earnings after market hours. On Thursday, shares of Biocon closed at INR 357 on the National Stock Exchange, 0.4% lower.  End

Reported by Anand JC

Edited by Avishek Dutta

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