Biocon sees revenue growth of 14 per cent to Rs 1,784 crores in Q3FY20

Biocon has reported that its revenue grew 14 per cent to Rs 1,784 crores in Q3FY20 through its biologics, small molecules and research services businesses. In addition, the biotech company also saw a seven per cent year-on-year drop in net profit to Rs 203 crores in Q3FY19 due to higher R&D expenses and tax impact of an exceptional item.

Commenting on the highlights, Kiran Mazumdar-Shaw, Chairperson and Managing Director, stated, “We witnessed a strong revenue growth of 14 per cent to Rs 1,784 crores in Q3FY20, led by biologics, small molecules and research services businesses. We continued our journey of increasing access to high quality biosimilars and commercialised our biosimilar Trastuzumab in the US, Canada and many EU markets this quarter. Net profit before exceptional item at Rs 225 crores reported a six per cent growth. EBITDA at Rs 480 crores reported a growth of 18 per cent. Core margins were strong at 33 per cent with EBITDA margin of 27 per cent and net profit margin of 11 per cent.”

She added, “Importantly, we have initiated value unlocking of our biosimilars business with the dilution of a minority stake to true north for a primary equity investment of $75 million, which gives a pre-money equity valuation of $3 billion for Biocon Biologics. We plan to raise further capital at an opportune time in the near future.”

While the Biologics segment reported a strong revenue growth of 31 per cent to Rs 588 crores during the period, for Q3FY20, small molecules business reported a 16 per cent growth to Rs 544 crores.

Moreover, the board of directors of Biocon has approved the appointment of Dr Mazumdar-Shaw as executive chairperson of the company for a period of five years subject to shareholders approval, effective April 1.

Biocon’s net profit before exceptional item at Rs 225 crore reported a six per cent growth. It reported an operating margin (EBITDA) of 27 per cent.