BENGALURU: Biopharmaceutical company Biocon swung to a profit from a loss in the year-earlier quarter helped by higher revenue from its small molecules and biologics business.
Net profit was Rs 147 crore, for the second quarter ended September 30, compared to a loss of Rs 11 crore, a year earlier according to the new accounting standards. The company also recorded a one time expense of Rs 108 crore last year.
Total revenue rose 21% to Rs 992 crore. Revenue from small molecules business rose 11% to Rs 654 crore while biologics business grew 15% to Rs 389 crore.
“Our performance in Q2 FY17, was led by strong growth across small molecules, biologics and research services. Expansion of our biologics footprint in emerging markets and licensing agreements boosted the revenue further. Our ready-to- use Insulin Glargine pen launched in Japan has been well received,” chairperson and managing director Kiran Mazumdar-Shaw said in a statement on Thursday.
The small molecules business was helped by a better product-mix of differentiated APIs and a higher contribution from statins. Sales in emerging markets of Africam Middle East and Latin America as well as sales to India-based customers servicing the needs of the US market made a significant contribution.
Gross spends on research and development was Rs 113 crore compared to Rs 91 crore earlier. Revenue from the company’s research services arm, Syngene, rose 14% to Rs 286 crore.
The biologics vertical, comprising novel biologics and biosimilars, including rh-insulin, insulin analogs, monoclonal antibodies and recombinant proteins, reported a strong growth of 26% to Rs 96 crore due to good performance in emerging markets.
During the quarter, Biocon’s two biosimilars were taken up for review by the European Medicines Agency (EMA), the EU’s agency for the evaluation of medicinal products. The company is on track to file two more biosimilars for regulatory approvals this fiscal in the US and EU and if successful, could open up a window of opportunities for the company and boost its revenue.
Biosimilars are biologic products made inside living cells and have no clinical differences in terms of safety and effectiveness from the main product. They are, however, not considered duplicates, like generics, by regulators as it is impossible to manufacture exact copies of biotech drugs.
Shares of the company closed at Rs 980.25, down 2% on the BSE on Thursday. It has risen about 40% since July, when it reported its first quarter results. Since the start of the year, it has gone up by about 90%.