Biocon posts Rs 773 crores revenue in Q2 FY15

Branded formulations records strong growth of 17 per cent

Biocon has recently posted the Q2 FY15 results. The biopharma segment recorded revenues of `442 crores in Q2FY15. The biopharma business continues to be impacted by various factors like geo-political challenges in terms of credit risk in the MENA region, reduced off-take of speciality API, and capacity constraints, affecting the growth of this business. The outlook for the biopharma business remains challenging for the remaining part of this fiscal.

The branded formulations business recorded revenues of Rs 116 crores in Q2 FY15. The vertical grew ahead of the industry reporting a robust growth of 17 per cent YoY. The growth this quarter was driven by oncotherapeutics, metabolics and nephrology divisions. The vertical continues with the strategy to drive synergies and profitable growth around key anchor brands and optimisation of product portfolios.

The research services segment recorded revenues of Rs 192 crores.

Kiran Mazumdar-Shaw, Chairman and Managing Director, stated, “The growth of our core biopharma business this quarter has been muted largely due to capacity constraints and geo-political challenges in the Middle East. However, clinical progress in our key global programs for generic Insulin Glargine and Trastuzumab is indicative of the value accretion that is realisable in the foreseeable future. The strategic investment by Silver Leaf Oak in Syngene validates the strength of our research services business and sets a good valuation benchmark. Whilst we continue to invest in R&D and capacity building for our insulins and antibodies portfolio, we expect branded formulations and research services businesses to drive growth in the interim.”

Peter Bains, Director Syngene International, said, “Research services delivered a sequential revenue growth of 11 per cent in Q2 FY15 reflecting steady business traction for our services. Our recent capacity additions have come online and we have a strong order book to support these in the near term. We continue to invest further across new and existing service platforms to sustain our growth curve and support the developing pipelines of our clients. A key highlight this quarter was the successful completion of a US FDA pre-approval inspection of one of our manufacturing facilities. We have, in the past 12 months, cleared two successive FDA audits with no 483s, underpinning the quality of our systems and processes”

EP News BureauMumbai