Biocon clocks Rs 4,519 crore revenue in Q3 of FY24, earns net profit of Rs 660 crore

New Delhi: Biocon has delivered consolidated revenue of Rs 4,519 crore for Q3FY24, driven by 65% growth in Biosimilars and 9% growth in Research Services. Consolidated EBITDA at Rs 1,492 crore grew by 106%.

The company has reported Net Profit of Rs 660 crore in the quarter as compared to a Net Loss of Rs 42 crore in the same period of the previous year.

This growth was supported by income from the divesture of two non-core business assets of Biocon Biologics’ Branded Formulations India business amounting to Rs 350 crore and a gain of Rs 456 crore from Biocon’s stake dilution in Bicara Therapeutics.

“A key milestone this quarter was the successful conclusion of the transition of the acquired business by Biocon Biologics and a pre-payment of ~USD 200 million towards the acquisition-related debt reduction. Steady market shares for key biosimilars in the U.S. and EU were complemented by the Emerging Markets performance which saw a number of new product launches and tender wins,” said Kiran Mazumdar Shaw, Executive Chairperson, Biocon and Biocon Biologics.

Net R&D investments for the quarter were Rs 329 crore, representing 11% of revenue ex-Syngene. Core EBITDA at Rs 983 crore, represents core operating margins of 27%.

A key milestone this quarter was the successful conclusion of the transition of the acquired business by Biocon Biologics and a pre-payment of ~USD 200 million towards the acquisition-related debt reduction.

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“Biocon Biologics successfully completed the complex, accelerated integration of the entire acquired business across 120+ countries, one year ahead of plan, transforming us into a unique, fully integrated, ‘lab-to market’ leading global biosimilars player. Our focus has been on preserving value, business continuity and ensuring a seamless experience for our patients, customers, and partners across the world. This success is a testament to the hard work and dedication of our team and advisors,” commented Shreehas Tambe, CEO & Managing Director, Biocon Biologics Limited.

“Syngene reported a revenue growth of 9% year-on-year in the third quarter on the back of good performance by Dedicated Centers, Development and Manufacturing divisions. Though demand in our Discovery Services division was impacted during the quarter by  headwinds in the U.S. biotech segment, we are starting to see early signs of funding levels stabilizing. Our business model remains resilient, and we are continuing to invest in scientific capabilities and important enterprise projects as industry fundamentals for pharma outsourcing remain positive for the medium-to-long term,” said Jonathan Hunt, CEO & Managing Director, Syngene.

“The Generics business delivered 4% sequential revenue growth in the third quarter, driven by higher API sales,” said Siddharth Mittal, CEO & Managing Director, Biocon Limited.

“The year-on-year performance, however, was muted on account of continued pricing pressure that impacted customer offtake in our API business, compared to the previous fiscal. This was partially offset by growth in our Generic Formulations portfolio. While we expect pricing pressure in the API business to persist, we continue our focus on driving cost and execution efficiencies throughout the business, to mitigate future impact,” added Mittal.

Key Milestones

Biocon’s Boston-based associate Bicara Therapeutics closed a USD 165 million Series C financing in December 2023, led by TPG and Braidwell. With this, USD 355 million has been raised to date from a syndicate of biotech investors, with all Series B investors participating in this round of financing.

Biocon Biologics reported a YoY growth of 65% for Q3FY24 with revenue at Rs 2,483 crore, demonstrating its ability to maintain its growth momentum while completing the complex and accelerated integration of the acquired biosimilars business. In this quarter, Biocon Biologics successfully completed its transition to a fully integrated, ‘lab-to-market’ global biosimilars enterprise with a presence across 120+ countries.