Biocon Group posts revenues of Rs 1098 crore for H1 2009

Biocon Group, along with German subsidiary AxiCorp, has posted a total income of Rs 1098 crores, up by 50% YoY for half-year ended on September 30, 2009. Earnings before interest, taxes, depreciation and amortization (EBITDA) has peaked to Rs 236 crores registering an year-on-year growth at 40%.

Biocon Group has reported a profit after tax (PAT) of Rs 132 crores reflecting a YoY growth at 230% (up 32% YoY pre-exceptionals).

Biocon’s operating margin went up by 22% resulting in an earnings per share at Rs 6.82.

Biocon Group including German Subsidiary AxiCorp reported total income of Rs 592 crores, up by 29% YoY, for the three months ended in September 2009. EBITDA at Rs 125 crores showed a YoY growth was 41%. PAT at Rs 74 crores rose by 192% YoY (up 47% YoY pre-exceptionals). Operating margin went up by 21%. Earnings per share for the three months is pegged at Rs 3.84.

Biocon’s contract services subsidiaries Syngene and Clinigene have posted a strong quarter on the back of stronger relationships with key customers.

Biocon looks at the cinical research outsourcing space as enormous in terms of opportunities.

Consultancy firm KPMG has estimated that this market is projected to hit US $23 billion by 2011 and further that India will account for 15% of this (or roughly $3.4 bn) by 2015. Importantly, these projections signify the growing interest of global pharma companies in conducting clinical trials in the emerging markets and also the value-per-dollar that these markets render vis-à-vis the developed world.

Among these countries, India scores top of the list owing to its good IP track record and its highly-skilled scientific human capital with excellent communication skills.

Biocon expects its experimental oral insulin could become a global blockbuster market opportunity for the company.

Biocon will pursue a go-to-market strategy of launching in India first, based on the outcome of the Phase III trials.

Biocon expects a large licensing opportunity with  oral insulin molecule.

Biocon’s psoriasis treatment T1h will shortly enter phase III trials for Psoriasis and the company expects to initiate licensing discussions for this over the next 12 months.

Phase III studies immuno-conjugates program with IATRICa for rheumatoid arthritis will commence in the next calendar year. Biocon expects expects to file the IND by Q2 FY2011 for the candidate.

“Biocon has systematically built its bio-pharmaceutical business on a framework of generic and proprietary products and processes. We are steadily gaining global manufacturing scale and have increased our footprint in many world markets. Our demonstrated expertise in both small molecules and biologics has enabled us to build key partnerships across our businesses. Our bet on innovation is already delivering long-term value creation. We are now at a stage of post-gestational growth, which we expect will deliver sustained shareholder value for the foreseeable future,” stated, CMD, Biocon Group, Ms. Kiran Mazumdar-Shaw.

On September 30, Biocon Limited had signed a definitive agreement to acquire Hyderabad-based chemical synthesis unit IDL Specialty Chemicals Limited.

Bulk manufacturer IDL is expected to add to Biocon’s existing capacity as well as help augment its product offerings in the chemical synthesis segment.

Biocon announced on September 12 that it had inked an exclusive co-development and marketing pact with California-based Amylin Pharmaceuticals for peptide therapeutics. Specifically, this will be geared towards a peptide hybrid or “phybrid” which will combine the properties of two peptides into one small molecule to treat diabetes.

Amylin Pharmaceuticals has been a front-runner in the field of peptide therapeutics and is a leader in the diabetes market.  Biocon will bring its recombinant DNA technology, large-scale manufacturing and low-cost pre-clinical and clinical development capabilities to this partnership.

Biocon and Amylin will share the development costs, a significant portion of which will arise in the phase III trials. Even as Amylin will own the intellectual property (IP) rights to the molecule and the “phybrid” technology, Biocon will hold the IP for the manufacturing.

Established in 1978, Biocon Limited is India’s largest biotechnology company by revenue. Promoted by Ms Kiran Mazumdar-Shaw, Biocon has a strategic focus on biopharmaceuticals and research services.

Biocon’s value chain spans discovery, development and commercialization of novel therapeutics.  Biocon with initiatives in clinical development, bio-processing and global marketing, delivers products and solutions to partners and customers in approximately 75 countries across the globe. Many of these products have USFDA and EMEA acceptance. Biocon’s robust product offering includes the world’s first recombinant human insulin, Insugen and India’s first indigenously produced monoclonal antibody BIOMAb-EGFR.