Biocon Q2 net down 21.42% to Rs 44 cr

BS 200 SCORECARD

Biocon has reported a 21.42 per cent decline in net profit to Rs 44 crore for second quarter (Q2) ending September 30 of 2005-06 against Rs 56 crore reported in the corresponding second quarter of 2004-05.

Revenues grew marginally by 6.87 per cent to Rs 202 crore compared with Rs 189 crore clocked in Q2 2004-05. EPS went down to Rs 3.7 in Q2 2005-06 from Rs 5.26 registered in Q2 2004-05.

"Despite strong growth in importart business segments, our performance was largely affected by the challenging pricing conditions in the European statins market," said Kiran Mazumdar Shaw, chairman and managing director, Biocon.

On a sequentional basis, net profit grew by 13 per cent in Q2 2005-06 against Rs 39 crore registered in Q1 2005-06.

Biocon wants to treat this fiscal as a gestation period as it promises delivery of oral insulin and oncology products to the market next year.

Announcing the company's second-quarter results, Biocon chairman and managing director Kiran Mazumdar Shaw said: "We expect to do well next year when diabetes and oncology products hits the market. Through these strong growth drivers, we are looking at healthy operating margins next year."

Biocon said that its dependence on statins will come down to 50% (from the current 60%) of sales and sales of other products (oncology and insulin) pick up in the next fiscal.

Currently, sales of biopharma products account for the lion's share of the company's first-half turnover of Rs 291 crore this fiscal, apart from enzyme sales and contract research.

Biocon's tieup with a Cuban for the development of molecule is expected to revolutionise cancer treatment in India.

For oral insulin (IN105), the company will be completing investigation and submit for approval by the end of this fiscal. The company has also made headway in getting its insulin drug registered in 30 countries across Europe, Middle East and South East Asian markets.

"We now are planning to take it to Latin America market, considering the success we've met overseas," said Ajay Bharadwaj, president-marketing Biocon Limtied.

He also added that few players in Middle East have come forward to take licence to produce and market for the Gulf countries.

Talking about the fast changing pharma market, Kiran Mazumdar Shaw said, "We forsee considerable improvement in Biocon's pharma, research and enzyme segments next year with considerable contribution from pharma in 2006."