Bangalore-headquartered Biocon today posted a 20 per cent rise in second-quarter net profit at Rs 89 crore, compared with Rs 74 crore a year earlier, on the back of higher growth in biopharmaceutical business.
Total income rose 16 per cent to Rs 688 crore, while operating profit increased by 22 per cent to Rs 153 crore, from Rs 127 crore in the year-ago quarter. “All our core businesses have delivered robust performance and are expected to sustain this level of growth for the rest of the year,” Chairman and Managing Director, Kiran Mazumdar-Shaw, said.
She said immunosuppressants, domestic-branded formulations and research services were showing traction in the business growth. Its biopharmaceutial business posted 18 per cent rise in revenue at Rs 601 crore, compared with Rs 507 crore, in the same period last year.
While immunosuppressants witnessed significant rise in sales in the US and European markets, domestic-branded formulations business posted 32 per cent growth. “We plan to launch a 100 IU variant of brand insugen in the third quarter of this financial year,” Shaw said.
Biocon’s German subsidiary Axicorp’s revenue also grew 30 per cent to Rs 523 crore during the first half of this financial year. Similarly, contract research business rose seven per cent to Rs 78 crore during the second quarter.
Shaw said the pact with Pfizer was an inflection point in the growth of the company. “Our strategy of building and unlocking high value innovation in biotechnology has seen us entering a new phase of growth.”
Last week, Biocon signed a $200-million marketing pact with Pfizer. According to the pact, Pfizer will commercialise Biocon's insulin products across the globe. Biocon is also expected to get an additional $150 million as part of this pact, based on certain product milestones.
Meanwhile, the company is also considering to ramp up its capacity in India and overseas to feed the possible demand which will arise due to the marketing deal with Pfizer. “We may ramp up our facility in Vizag to increase manufacturing capacity. Also, we are looking for some manufacturing units in Malaysia,” Shaw said.
