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Biocon’s Q3 net up by 187% as drug sales, contract services revenues peak

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Thursday, January 21, 2010, 22:48 This news item was posted in Biotech category and has 0 Comments so far.

Indian biotherapeutics major Biocon Ltd has reported an 187% jump in third quarter net profits – which is nearly three times more compared to the same period a year ago, owing to higher sales of statins and immuno-suppressants in developed markets, healthy insulin sales in India and significantly higher returns from research services.

Biocon’s consolidated net profit has jumped by 187 per cent to Rs 80.89 crore from Rs 28.20 crore. However, its EBDITA improved only by 19.5 per cent to Rs 133.12 crore from Rs 111.44 crore.

Biocon’s consolidated net sales for the quarter increased by 45.6 per cent to Rs 635.12 crore from Rs 436.19 crore. The sales of biopharmaceuticals improved smartly by 51 per cent to Rs 566 crore during the third quarter ended December 2009 from Rs 375 crore in the corresponding period of last year.

Biocon’s revenue from the biopharmaceuticals business rose 51% from a year earlier to 5.66 billion rupees in the quarter.

Biocon said revenue from the biopharmaceuticals business included 180 million rupees of licensing income in the latest October-December period, compared with 30 million rupees a year earlier.

Biocon’s income from contract research improved by 14 per cent to Rs 69 crore from Rs 61 crore. The research and development expenditure increased by 26 per cent to Rs 17 crore from Rs 14 crore.

Biocon carries out contract research through its units, Syngene International Ltd. and Clingene International Ltd.

Syngene, which provides drug discovery and development services to pharmaceutical and biotechnology companies, has seen an addition of new customers.

The Mylan partnership for biosimilars is also making satisfactory progress.

Biocon’s strategic research alliances with Amylin and Vaccinex is enabling Biocon to expand its footprint in drug innovation.

“Biocon has delivered strong growth in all business segments and we are confident of maintaining this momentum in the next quarter,” stated Kiran Mazumdar-Shaw, chairman and managing director.

Biocon has filed a US IND application for IN 105 (oral insulin), Mazumdar-Shaw said.

Insulin pill IN-105, if comes out successful in patient studies, will have huge potential with a certainty to become a multibillion dollar blockbuster.

Biocon’s oral insulin is a conjugated peptide molecule in tablet formulation which is metabolically equivalent to human insulin.

Biocon has conducted 4 Phase 1 studies with oral insulin IN 105. A Phase 2 study using IN 105 has shown that the oral insulin pill’s absorption in the body is proportional to the dose administered.

Biocon’s oral insulin IN 105 is currently undergoing Phase 3 clinical studies in India. The six-month placebo controlled double-blind study is evaluating the efficacy of oral insulin as an add-on therapy in type 2 diabetes patients.

Oral isulin IN 105 is being studied as monotherapy as well as in combination with metphormin, sufonylurea, PPAR agonists, DPP4i etc and pre-meal insulin in combination with basal insulin.

Biocon is planning to begin commercial production of oral insulin pill in 2010 or early 2011, stated Biocon’s managing director Kiran Mazumdar- Shaw, in a recentinterview given to a leading newswire.
Biocon’s R&D programmes have been financed entirely from internal accruals. Total R&D spend, as a proportion of Biocon standalone revenue, now stands at 8 per cent.

Biocon Limited is India’s largest biotechnology company by revenue. Biocon makets 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 products offering includes the world’s first recombinant human insulin, Insugen and India’s first indigenously produced monoclonal antibody BIOMAb-EGFR.

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