Don’t miss the latest developments in business and finance.

Biocon tumbles after Q4 earnings

Image
Capital Market
Last Updated : Apr 26 2013 | 10:30 AM IST

The result was announced after market hours on Thursday, 25 April 2013.

Meanwhile, the BSE Sensex was down 64.35 points, or 0.33%, to 19,342.50.

On BSE, 41,000 shares were traded in the counter as against an average daily volume of 73,673 shares in the past one quarter.

The stock hit a high of Rs 290 and a low of Rs 277.05 so far during the day. The stock had hit a 52-week high of Rs 321.50 on 16 November 2012. The stock had hit a 52-week low of Rs 208.10 on 4 June 2012.

The stock had outperformed the market over the past one month till 25 April 2013, rising 5.91% compared with the Sensex's 3.88% rise. The scrip had also outperformed the market in past one quarter, gaining 8.11% as against Sensex's 3.47% fall.

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

More From This Section

Biocon's consolidated net profit surged 154% to Rs 249 crore on 4% rise in total revenue to 649 crore in Q4 March 2013 over Q4 March 2012. The company reported an exceptional item of Rs 202 crore in Q4 March 2013. Profit before tax (PBT) before exceptional item fell 30% to Rs 77 crore in Q4 March 2013 over Q4 March 2012.

Biocon said that it received $20 million from US drug maker Mylan Inc. as an upfront payment related to its deal on insulin products. In February 2013, Biocon signed a deal with US drug maker Mylan for an exclusive collaboration for the development and commercialization of generic versions of Biocon's three insulin analog products globally.

Commenting on the results, Chairman and Managing Director, Kiran Mazumdar-Shaw stated, "We are pleased to close fiscal 2013 on a very strong note. The key contributors to growth this fiscal have been Research Services, Branded Formulations and our growing biosimilar business, led by generic Insulins. Biocon's Insulin franchise continues to garner market share across India & emerging markets and now accounts for more than 10% of our sales. This quarter saw us enhance our partnership with Mylan through the re-licensing of our portfolio of generic insulin analogs. The partnership with Mylan endorses the intrinsic value of this asset and significantly reduces our burden of development costs involved in global commercialization. Looking ahead, we intend to sustain our growth momentum by optimizing our small molecules portfolio, further expanding our insulin footprint in emerging markets, and continuing to deliver robust growth in Branded Formulations and Research Services. I am also pleased to state that the Board has recommended a Dividend payout of Rs 5/share (100%) and a Special Dividend of Rs 2.50/share (50%) pursuant to the re-licensing of our insulin analogs portfolio, as our on-going commitment to building incremental shareholder value."

In its outlook, Biocon said that the emphasis in fiscal year ending March 2014 will be on the execution of development plans for the generic biologics portfolio with a firm leash on costs and portfolio margins. The firm expects its research and development (R&D) costs to increase in line with the progress being made by our generic biologics and novel molecules. Revenues should keep pace with the increasing R&D investments, as the firm gains further traction in emerging markets this fiscal. It intends to further optimize its small molecules portfolio to ensure healthy margins. Our Malaysian facility continues to advance and is poised to come on stream by the fiscal year ending March 2015, helping Biocon transform into a leading generic insulin player.

Biocon is India's premier biotechnology company with a strategic focus on biopharmaceuticals and research services. Established in 1978 by Dr. Kiran Mazumdar-Shaw, the Group is an integrated, innovation-driven healthcare enterprise with offerings that traverse the entire drug development value chain. Balancing its novel molecule research pipeline with a diversified product portfolio, Biocon delivers affordable solutions to partners and customers in over 75 countries across the globe. Many of these products have US Food and Drug Administration (USFDA) and European Medicines Agency (EMA) acceptance.

Powered by Capital Market - Live News

Also Read

First Published: Apr 26 2013 | 9:59 AM IST

Next Story