Biocon Q1 Results: Profit Drops 30%, Misses Estimates
The drugmaker's profit declined to Rs 101 crore in the quarter ended June.
Biocon Ltd.'s consolidated net profit fell 30% in the first quarter of fiscal 2024, missing analysts' estimates.
The drugmaker's profit declined to Rs 101 crore in the April-June quarter, according to an exchange filing on Thursday. That compares with the Rs 157-crore consensus estimate of analysts tracked by Bloomberg. Sequentially, the profit slumped 68%.
Biocon Q1 FY24 Highlights (Consolidated, YoY)
Revenue rose 60% to Rs 3,423 crore against an estimate of Rs 3,355 crore.
Operating profit was up 79% to Rs 714 crore, as compared with an estimate of Rs 829 crore.
Operating margin was at 20.9% against 18.7% a year ago. Analysts had estimated it at 24.7%.
Other Highlights (YoY)
Revenue from generics was up 15% at Rs 700 crore and contributed to 20% of the total revenue.
Biosimilars—Biocon Biologics Ltd.—reported a growth of 106% at Rs 2,015 crore, accounting for 57% of the revenue.
Research services—Syngene—reported a growth of 25% at Rs 808 crore and made up 23% of the quarterly revenue.
Net research and development expenses were up 59% over last year at Rs 315 crore.
"R&D investments at Rs 315 crore increased by Rs 117 crore this quarter, reflecting our advancing pipeline, which will support future growth," said Executive Chairperson Kiran Mazumdar-Shaw in the press note.
The company's key biosimilars are gaining traction in the U.S. and Europe, with Fulphila becoming the leading biosimilar Pegfilgrastim in the U.S. and biosimilar Glargine’s market share crossing the 12% mark.
"Biocon Biologics has delivered a strong revenue growth of over 100% for the first quarter. This was driven by the acquisition of Viatris biosimilars business and growth in market shares for our products in the U.S. and Europe," the company's Chief Executive Officer Shreehas Tambe said.
"Having successfully transitioned the acquired business from Viatris in over 70 countries in emerging markets, we are now looking forward to integrating the business in North America by the end of Q2 FY24," he said.
Shares of Biocon closed 3.06% lower at Rs 261.55 apiece on the BSE before the results were announced, as compared with a 0.47% decline in the benchmark Sensex.
