Biocon yesterday announced its consolidated financial results for the third quarter ended 31st December, 2021.
Commenting on the results, Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, said, “Biocon’s consolidated Q3FY22 revenues grew by 18 per cent YoY to Rs 2,223 crores, driven by a strong performance across all business segments. Biosimilars grew by 28 per cent to Rs 981 crores, research services were up 10 per cent at Rs 641 crores and generics delivered a seven per cent growth at Rs 607 crores.
“EBITDA at Rs 537 crores grew by 25 per cent, which was impacted by mark-to-market loss attributed to Biocon Biologics’ equity investment in Adagio. Core EBITDA stood at Rs 715 crores with a margin of 33 per cent. PBT for the quarter stood at Rs 269 crores. Adjusted for Adagio related loss, PBT was higher at Rs 346 crores, indicating a healthy operating profitability.”
In addition to it, she said, “Biocon Biologics achieved a key milestone with the commercialisation of the world’s first interchangeable biosimilar, our Insulin Glargine, in the US. Approvals for several of our generics and biosimilars in global markets and renewal of key long-term research service agreements at Syngene, position us for a strong close to this fiscal.”
In a statement, Biocon said that its Environment, Sustainability and Governance (ESG) efforts and initiatives were recognised with the induction of Biocon into the Dow Jones Sustainability Index (DJSI) for Emerging Markets with a 93-percentile for the industry sector, placing it amongst the top 15 companies to feature in the 2021 listing. The company also secured an improved Carbon Disclosure Project (CDP) rating of ‘B’ from ‘C’ earlier as per the 2021 CDP report.
Further, the statement notified that Biocon has been selected to participate in the Production Linked Incentive (PLI) scheme announced by the Government of India, which will provide financial incentives linked to investments in manufacturing infrastructure and corresponding revenue growth.
Commenting on the Generics segment performance, Siddharth Mittal, CEO and Managing Director, Biocon, said, “During the quarter, we continued to make progress on our product pipeline, with three new approvals – one in the US and two in Europe. Our partnership with Tabuk Pharmaceuticals paves the way for expansion into the Middle East and North Africa and underscores our commitment to make medicines available to patients who need them around the world.
“Looking ahead, our efforts will focus around further capacity expansion, cost improvement projects and accelerating our pipeline to bring our products to market expeditiously.”
The company’s generics business witnessed a 15 per cent sequential revenue growth in Q3FY22, that was supported by the US launch of Everolimus tablets, the generic version of Afinitor, as well as a pick-up in demand in its API business. The YoY growth of seven per cent was driven mainly by the Everolimus launch, and the company expects this product to continue to contribute to the growth of its generic formulation portfolio, added the statement.
It also mentioned that COVID-related disruptions that had impacted the company’s operations earlier in the fiscal began to abate during this quarter. The business continues to face headwinds due to pricing pressure in various markets, increase in solvent and other raw material prices and higher logistic costs. During the quarter, the company received approval for its ANDA for Mycophenolic Acid from the US FDA. This product is indicated for the prophylaxis of organ rejection in adult patients receiving kidney transplants, and is available in 180mg and 360mg strengths.
In Europe, the company received approvals for Everolimus tablets of 2.5mg, 5mg and 10mg strengths and Fingolimod capsule of 0.5 mg strength. Its greenfield immunosuppressants API manufacturing facility in Visakhapatnam continues to remain on track to be commissioned by the end of FY22, with qualification and validation in FY23, the statement said.
Dr Arun Chandavarkar, Managing Director, Biocon Biologics, notified, “Biocon Biologics reported a revenue growth of 28 per cent YoY and 32 per cent QoQ at Rs 981 crores. Core EBITDA rose 27 per cent to Rs 363 crores with core EBITDA margins at 38 per cent. The strong growth in revenue is on the back of robust demand for our products across geographies and the commencement of supplies of interchangeable bGlargine to the US. Encouraged by the demand for our insulins globally and considering the new opportunities, we have initiated investments for the expansion of our insulin-manufacturing facility in Malaysia. We have seen good progress on our R&D pipeline with a few molecules expected to enter the clinic in Q4FY22.”
Regarding business performance, the statement highlighted that the revenue for the quarter stood at Rs 981 crores, reporting a growth of 28 per cent YoY, driven by steady sales of its biosimilars portfolio including insulins, monoclonal antibodies (mAbs) and recombinant proteins across developed and emerging markets and a strong performance from the company’s branded formulations business in India. EBITDA, at Rs 236 crores, was up 12 per cent. This includes mark-to-market loss of Rs 77 crores, related to investment in Adagio. Core EBITDA, excluding R&D, forex, licensing income and mark-to-market loss related to Adagio, stood at Rs 363 crores, up 27 per cent year-on-year. Core EBITDA margin was at 38 per cent for the quarter. Profit Before Tax, excluding the mark-to-market loss related to Adagio, stood at Rs 201 crores, up 82 per cent year-on-year, added the statement.
Furthermore, during the quarter, Biocon Biologics-led business in emerging markets, including India, recorded a strong, double-digit growth driven by its existing portfolio of bTrastuzumab and insulins across all regions, AFMET, APAC and LATAM. Apart from it, the company’s branded formulations – India business reported double-digit growth for the quarter, and the 9MFY22 revenue exceeded the revenue recorded for the full year in FY21, said the statement.