Biocon Q1 net profit up 551%, driven by gain from Eris Life partnership

Bengaluru-based biopharma Biocon on Thursday reported an increase of 551 per cent in consolidated net profit to Rs 660 crore in the first quarter of FY25 compared to Rs 101 crore in the same period last fiscal year. The company reported profit before tax (PBT) of Rs 1,146 crore, up 524 per cent in Q1 FY25.

Total revenue stood at Rs 4,567 crore in Q1 FY25 as against Rs 3,516 crore in Q1 FY24. Revenue in the biosimilars business grew to Rs 2,083 crore during the period from Rs 2,015 crore earlier.

Biocon said the quarter’s performance was driven by a one-time gain from the collaboration between Biocon Biologics and Eris Lifesciences. Moreover, the underlying business performance has been in line with the company’s expectations.

 

“Post integration, the biosimilars business has delivered a healthy performance with 11 per cent like-for-like growth, as it consolidates business across global markets. This has helped offset the challenges of pricing pressures in the generics segment and the difficult US biotech funding environment, which has impacted the growth trajectory of our research services business,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) was reported at Rs 1,755 crore in the current quarter compared to Rs 808 crore in the same quarter during FY24. Additionally, EBITDA margins grew to 38 per cent.

Biocon’s generics business, constituting APIs and generic formulations, saw revenue slip to Rs 659 crore from Rs 700 crore during Q1 FY25. According to the company, the segment continued to encounter pricing pressure and demand contraction, impacting first-quarter performance.

Biocon said, in line with the business’ regional expansion strategy, an exclusive licensing and supply agreement was entered into with Handok, a pharmaceutical company in South Korea, for the commercialisation of synthetic Liraglutide. Additionally, Biocon received a GMP certificate from TGA, Australia, for its Visakhapatnam API facility (Site 5).

“Looking ahead, our focus will be directed towards commercialising products for which we have received approvals, including Liraglutide, in the second half of this fiscal, as indicated previously. We will also continue to accelerate our cost improvement initiatives and expedite ongoing capex projects,” said Siddharth Mittal, CEO & Managing Director, Biocon.

The biosimilar business reported Q1 FY25 revenue of Rs 2,083 crore, up 11 per cent annually on a like-for-like basis. This performance was boosted by an increase in market shares, improvement in Europe and emerging markets, along with 15 new product launches.

“This quarter, YESAFILI, our biosimilar Aflibercept, was approved by the US FDA. Our manufacturing facilities in Bengaluru, India, and Johor, Malaysia, received GMP certifications from regulatory agencies such as the European Medicines Agency (EMA) and Therapeutic Goods Administration (TGA), Australia. These milestones will serve as growth catalysts and allow us to expand our reach to millions of patients globally,” said Shreehas Tambe, CEO & Managing Director, Biocon Biologics.

For Syngene, the research services business, Q1 FY25 revenue stood at Rs 790 crore, down 2 per cent yearly. “First-quarter performance was broadly flat, in line with our expectations, reflecting the dip in funding for US biotechs that has impacted our sector over the last two years. However, the value of US biotech funding has seen a marked improvement in the first half of 2024,” said Jonathan Hunt, CEO & Managing Director, Syngene International.

“The outlook for this fiscal remains positive as we anticipate stronger growth in the second half (H2) of FY25, with new product launches in the biosimilars and generics businesses, including Liraglutide for diabetes and obesity in the UK and other markets. Additionally, we expect improved business prospects for Syngene, supported by a resurgent biotech funding environment in the US,” added Mazumdar-Shaw.