Biocon Q2 Results Review - Steady Performance; Focus On Viatris Integration: ICICI Direct

Decision to acquire Viatris’ front end business in the U.S. and the leverage on BS is likely to have more influence on sentiments.

<div class="paragraphs"><p>Biocon Research Centre in Bengaluru. (Photo: Company website)</p></div>
Biocon Research Centre in Bengaluru. (Photo: Company website)

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ICICI Direct Report

Biocon Ltd.'s revenues grew 26% YoY to Rs 2320 crore on the back of traction in generics, which grew 17.5% YoY to Rs 623 crore, biosimilars, which grew 34.3% YoY to Rs 997 crore and Syngene International Ltd. revenues that were up 26% to Rs 768 crore.

Biocon's Ebitda grew 5.6% YoY to Rs 471 crore while Ebitda margins grew 393 basis points YoY to 20.3%. Margins were affected mainly due to increase in research and development expenditure. Profit after tax was down 66.1% YoY to Rs 47 crore, mainly due to tax adjustments.

Biosimilars growth was driven by increased prescriptions of existing products in the U.S. besides new launches in Europe and emerging market.

Generics growth was driven by two antidiabetic launches in Europe. Syngene growth was well rounded as reported earlier.

Quarterly performances notwithstanding, the recent decision to acquire Viatris’ front end business in the U.S. and the leverage on the balance sheet is likely to have more influence on sentiments.

Click on the attachment to read the full report:

ICICI Direct Biocon Q2FY23 Results Review.pdf
Biocon Q2 Results: Profit Falls 66%, Misses Estimates


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