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Biocon jumps after posting strong Q1 results

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Capital Market
Last Updated : Jul 22 2016 | 11:01 AM IST

Biocon jumped 6.34% to Rs 746 at 10:55 IST on BSE after consolidated net profit rose 34.46% to Rs 166.60 crore on 22.72% rise in total income to Rs 1023.30 crore in Q1 June 2016 over Q1 June 2015.

The result was announced after trading hours yesterday, 21 July 2016.

Meanwhile, the S&P BSE Sensex was down 50 points or 0.18% at 27,661.58.

High volume was witnessed on the counter. On BSE, so far 2.73 shares were traded in the counter as against average daily volume of 90,364 shares in the past one quarter. The stock hit a high of Rs 749 and a low of Rs 712 so far during the day. The stock had hit a record high of Rs 766 on 30 June 2016. The stock had hit a 52-week low of Rs 396.50 on 25 August 2015. The stock had underperformed the market over the past one month till 21 July 2016, falling 3.13% compared with Sensex's 3.35% rise. The scrip had, however, outperformed the market in past one quarter, advancing 27.42% as against Sensex's 7.07% rise.

The large-cap company has equity capital of Rs 100 crore. Face value per share is Rs 5.

Biocon said that revenue rose led by all-round growth of its business verticals viz. small molecules, biologics, branded formulations and Syngene, which represents research services business. The research services business through Syngene reported a robust revenue growth of 18% at Rs 263 crore in Q1 June 2016 over Q1 June 2015, driven by a strong performance across its three verticals-dedicated R&D centers, discovery services and development & manufacturing services. The positive growth and outlook positions Syngene for a strong performance in the year ending 31 March 2017 (FY 2017).

Separately, Mylan N.V. and Biocon announced yesterday, 21 July 2016 that the European Medicines Agency (EMA) has accepted for review, Mylan's Marketing Authorization Application (MAA) for the proposed biosimilar Pegfilgrastim, which is used to reduce the duration of neutropenia and the incidence of febrile neutropenia in adult patients treated with cytotoxic chemotherapy for malignancy (with the exception of chronic myeloid leukaemia and myelodysplastic syndromes).

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Mylan, a global pharmaceutical company and Biocon, who have co-developed the proposed biosimilar, received EMA's acceptance of the submission for review. In addition to analytical, functional and pre-clinical data, the application includes clinical data from pivotal Pharmacokinetic/Pharmacodynamic (PK/PD) and confirmatory efficacy, safety and immunogenicity studies completed earlier in 2016. The results from the studies are expected to be presented at the prestigious European Society of Medical Oncology (ESMO) Annual Congress to be held in Copenhagen in October 2016.

Pegfilgrastim is prescribed for cancer patients to help them with some of the side-effects of their treatment.

Biocon and Mylan are exclusive partners on a broad portfolio of biosimilars and generic insulin analogs. The proposed biosimilar Pegfilgrastim is one of the six biologic products co-developed by Mylan and Biocon for the global marketplace. Mylan has exclusive commercialization rights for the proposed biosimilar Pegfilgrastim in the US, Canada, Japan, Australia, New Zealand and in the European Union and European Free Trade Association countries. Biocon has co-exclusive commercialization rights with Mylan for the product in the rest of the world.

Biocon is India's largest and fully-integrated, innovation-led biopharmaceutical company.

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First Published: Jul 22 2016 | 10:49 AM IST

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