Biosimilar can boost Biocon sentiment

Weak Q2 results led to downward revision of estimates

Biocon reported a muted September quarter (Q2) performance that was lower than estimates. Though the research services’ revenue, led by Syngene, rebounded, after a fire incidence in the December 2016 quarter, and branded formulations segment too saw decent growth, the decline in its small molecules business (about a third of sales) and flat biologics revenues pulled down the numbers. However, there is hope for a recovery.

Chairperson and Managing Director Kiran Majumdar Shaw said earnings performance was muted because of several factors, including plant modifications to comply with regulatory requirement, which led to production disruptions. Biocon also experienced regulatory and