Bengaluru-based Biocon Ltd reported an 87 per cent year-on-year (YoY) decline, recording a net loss of ₹16 crore for the quarter ending September 30, compared to a profit of ₹126 crore in Q2FY24, falling short of market and analyst expectations. The profit decline was attributed to higher taxes resulting from the geographical distribution of profits and minority interests. After adjusting for exceptional items, the loss amounts to ₹13 crore.
The biopharma major’s revenue showed a modest y-o-y increase of 4 per cent, reaching ₹3,590 crore in this quarter, up from ₹3,462 crore in Q2FY24.
The EBITDA stood at ₹ 718 crore, down from ₹ 900 crore in the same period last year, with an EBITDA margin of 20 percent.
The company reduced its Net R&D investment by 24 percent from ₹264 in Q2FY24 to ₹200 crore in Q2FY25.
Explaining the segment performance, Kiran Mazumdar Shaw, Chairperson, Biocon Group, noted that the Biosimilars business registered a robust 19 percent increase on a like-for-like revenue basis, driven by strong market share gains in their US Oncology and Insulin franchises. Echoing this, Peter Bains, Group CEO of Biocon Limited, stated, “Healthy double-digit growth was observed in Biosimilars more than offset a relatively muted performance in the Generics business and a marginal decline in Syngene’s revenues.”
Sequential growth
Shaw added that Syngene has returned to sequential growth and anticipates increased momentum in the coming quarters, particularly in its Discovery Services and Biomanufacturing CMO business. However, the Generics segment continues to face price and demand pressures, suppressing its performance. She remains optimistic about the key new formulation launches in Q3 and Q4 which are expected to support a turnaround by year-end.
During the quarter, the company obtained approvals in the US for Sacubitril + Valsartan tablets used in the treatment of chronic heart failure, and for Daptomycin for injection to treat bacterial infections.
Furthermore, it secured two new partnerships, a licensing and supply agreement with Tabuk Pharmaceutical for commercializing its GLP1 products for both diabetes and chronic weight management in select countries within the Middle East, along with an exclusive distribution and supply agreement with a pharma company in Brazil for the commercialization of its vertically integrated drug product, Liraglutide.
The shares of Biocon closed at ₹320.80, down by 1.85 per cent on the BSE. The results were announced after the market closed.