The company's total income for Q1 is marginally up 2 per cent at Rs 276.50 crore, due to intense competition in global markets and value realised remained the same as last year, even though volumes grew. Sales (excluding enzymes) grew by 7 per cent.
Commenting on the results, Kiran Mazumdar-Shaw, chairman and managing director of the company, said "Our first-quarter performance has been impacted by rupee volatility which has seen us make a Mark to Market provision of Rs 26 crore. We have consciously been conservative in making this provision. I believe that our business fundamentals are robust, which is well demonstrated by the strong profit growth in our core biopharma business. The absence of licensing income this quarter has had a disproportionate impact on profitability."
The management of Biocon reasoned that licensing income is event driven and inherently variable across quarters. Licensing income accounted for Rs 17 crore in Q1 FY08. Biocon derives licensing income from branded formulations to address cardio-diabetes, nephrology and oncology diseases.
Biopharma business (excluding licensing income) showed 40 per cent increase in PAT (from Rs 28 crore in Q1 FY08 to Rs 39 crore in Q1 FY09) demonstrating strong profit growth in its core biopharma business.
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"Syngene, the contract research subsidiary, had a difficult quarter. The management expects to compensate this in the quarters ahead especially with the Bristol Myers-Squibb (BMS) facility becoming fully operational by third-quarter (Q3) of financial year 2009. Clinigene, the clinical research subsidiary, is now fully operational at its new facility and is on track to deliver this fiscal," she added.
Biocon officials said they are particularly encouraged by the good growth demonstrated by their branded formulations where several brands have attained high ranking in their product segments in India. Insugen, the human insulin product, has now garnered an all India market share of about 15 per cent in the vial segment.
Meanwhile, Med Ad News, a US Trade publication, has ranked Biocon at No 20 in its 2007 list of global biotech companies, based on revenue and income. The report has taken into consideration drug-based firms based on revenues and income.