Biocon reported consolidated net profit of Rs 660 crore in Q3 FY24 as compared with net loss of Rs 41.8 crore posted in Q3 FY23.
Revenue from operations jumped 34.43% year on year (YoY) to Rs 3,953.7 crore in the quarter ended 31 December 2023.
Profit before exceptional items and tax stood at Rs 787 crore in Q3 FY24 as against Rs 245.9 crore in Q3 FY23.
The pharma company reported an exceptional profit of Rs 21.2 crore in the current quarter and exceptional loss of Rs 271.4 crore in Q3 FY23.
EBITDA stood at Rs 149.2 crore, up 106% from Rs 72.3 crore reported in Q3 FY23. EBITDA margin improved to 33% in Q3 FY24 as against 24% in same quarter previous fiscal.
Net R&D investments for the quarter stood at Rs 329 crore, representing 11% of revenue exSyngene.
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On segmental front, income from generics decraesed 7.49% to Rs 703.4 crore in Q3 FY24 as compared with Rs 760.4 crore posted in Q3 FY23. The subdued YoY performance was due to pricing pressure in the API business that impacted customer offtake, which was partially offset by sustained growth across most of the generic formulation products.
Revenue from Biosimilars stood at Rs 2,482.9 crore in Q2 FY24, up 64.80% YoY, demonstrating its ability to maintain its growth momentum while completing the complex and accelerated integration of the acquired biosimilars business, stated the company.
In Q3 FY24, revenue from research services (Syngene) business jumped 8.60% YoY to Rs 853.50 crore. Syngenes performance in discovery services was impacted by the slowdown of funding in the global biotech ecosystem. In manufacturing services, the company continued to make good progress on the long-term biologics manufacturing partnership with Zoetis.
Kiran Mazumdar Shaw, executive chairperson, Biocon and Biocon Biologics, said, "Biocon delivered consolidated revenue of Rs 4,519 crore for Q3FY24, driven by 65% growth in Biosimilars and 9% growth in Research Services. consolidated EBITDA at Rs 1,492 crore grew by 106%. Net Profit, boosted by other income, stood at Rs 660 crore.
A key milestone this quarter was the successful conclusion of the transition of the acquired business by Biocon Biologics and a pre-payment of around $200 million towards the acquisitionrelated debt reduction. Steady market shares for key biosimilars in the U.S. and EU were complemented by the Emerging Markets performance which saw a number of new product launches and tender wins.
Siddharth Mittal, CEO & managing director, Biocon, said, While we expect pricing pressure in the API business to persist, we continue our focus on driving cost and execution efficiencies throughout the business, to mitigate future impact. We received a tentative approval of our ANDA for Dasatinib tablets from the U.S. FDA recently, which reinforces our strategy to vertically integrate complex, difficult-to-make products.
Shreehas Tambe, CEO & Managing Director, Biocon Biologics, said, Biocon Biologics successfully completed the complex, accelerated integration of the entire acquired business across 120+ countries, one year ahead of plan, transforming us into a unique, fully integrated, lab-to market leading global biosimilars player. We onboarded new customers and won several key tenders
Jonathan Hunt, CEO & managing director, Syngene, said, Syngene reported a revenue growth of 9% YoY in the third quarter on the back of good performance by dedicated centers, development and manufacturing divisions. Though demand in our discovery services division was impacted during the quarter by headwinds in the U.S. biotech segment, we are starting to see early signs of funding levels stabilizing. Our business model remains resilient, and we are continuing to invest in scientific capabilities and important enterprise projects as industry fundamentals for pharma outsourcing remain positive for the medium-to-long term.
Meanwhile, the company stated that Indranil Sen, chief financial officer (CFO) of the company has tendered his resignation to pursue opportunities outside the organization. Sen shall be associated with the organization till the close of business hours of 15 March 2024.
Biocon is an innovation led global biopharmaceuticals company, engaged in the production of therapies for chronic conditions like diabetes, cancer and autoimmune. It has developed and commercialized novel biologics, biosimilars, and complex small molecule APIs in India and several key global markets as well as Generic Formulations in the US, Europe & key emerging markets. It also has a pipeline of promising novel assets in immunotherapy under development.
Shares of Biocon slipped 3.92% to Rs 273.30 on the BSE.
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