Biocon net soars 112%

Biocon Ltd, the leading Bangalore-based biotechnology major has posted a 112 per cent growth in net profit at Rs 48.6 crore in the first quarter ended June 30, 2004, compared with the year-ago quarter.

This was on a 65 per cent increase in revenues at Rs 177.9 crore. Earnings per share for the quarter was Rs 4.89.

Announcing the company's results for the first quarter, Kiran Mazumdar Shaw, chairman and managing director, Biocon Ltd, said, "Our Q1 performance marks a strong beginning to the current financial year. Q1 was driven by our successful entry into the pravostatin market in Europe following the expiration of product patents in key markets in the region."

Ms Shaw said that sales of Lovastatin to the US also increased subsequent to obtaining US Food & Drugs Administration approval for the company's submerged fermentation facility. "This also enabled us to meet the backlog of orders for lovastatin," Shaw added.

For the quarter ended June 30, 2004, revenues from biopharmaceuticals increased by 67 per cent to touch Rs 139.7 crore, revenues from statins increased by 79 per cent to Rs 95.7 crore and revenues from custom and clinical research increased by 80 per cent to Rs 14 crore, when compared to the corresponding quarter last year.

Biocon had signed a letter of intent to export recombinant human insulin to Bristol Myers Squibb. While this has already resulted in a 9-year supply agreement, Biocon feels that it is relationships like these will provide an edge with regards to competition from China.

While the company is fully geared-up for the commercial launch of recombinant human insulin, a final approval from US FDA will set the ball in motion. Biocon is also pinning its hopes on the progress it has made in the monoclonal antibody segment.

This segment is expected to grow from its current market size of $4 billion to $13 billion by 2010.