Biocon reports 30% revenue increase and ₹660 crore net profit in Q1FY25

New Delhi: Biocon Limited has reported a 30% increase in consolidated revenue for the first quarter of fiscal year 2025 (Q1FY25), reaching ₹4,567 crore. 

This growth has been driven by a significant strategic collaboration between Biocon Biologics and Eris Lifesciences, contributing a one-time gain of ₹1,057 crore. The company’s EBITDA saw a remarkable 117% year-on-year growth, reaching ₹1,755 crore, while net profit rose to ₹660 crore.

Biocon’s Q1FY25 revenue from operations amounted to ₹3,433 crore, supported by strong performances across its business segments. Biocon Biologics Limited, the company’s biosimilars division, contributed ₹2,083 crore, reflecting an 11% year-on-year growth on a like-for-like basis. This growth was driven by increased market shares, successful tender wins in Europe and emerging markets, and the launch of 15 new products.

The research services segment, operated by Syngene, recorded ₹790 crore, while the generics segment, consisting of APIs and generic formulations, generated ₹659 crore. Notably, the revenue from the generics business was impacted by pricing pressures, resulting in a 6% decline from the previous year.

The financial performance of Biocon in Q1FY25 reflects strategic maneuvers and sector resilience. While the core EBITDA stood at ₹903 crore, with a core operating margin of 26%, the company continued to invest heavily in research and development, with net R&D expenses of ₹228 crore, accounting for 9% of revenue excluding Syngene.

Kiran Mazumdar-Shaw, Executive Chairperson of Biocon and Biocon Biologics, emphasized, “The underlying business performance of Biocon has been in line with our expectations. Post integration, the Biosimilars business has delivered a healthy performance with 11% like- for- like growth, as it consolidates business across global markets. This has helped offset the challenges of pricing pressures in the Generics segment and the difficult U.S. Biotech funding environment, which has impacted the growth trajectory of our Research Services business.” Looking forward, Mazumdar-Shaw expressed optimism about the fiscal outlook, with expectations of stronger growth in H2FY25 due to anticipated product launches, including Liraglutide for diabetes and obesity in the UK and other markets.

Siddharth Mittal, CEO and Managing Director of Biocon Limited, acknowledged the generics segment’s ongoing challenges with pricing pressure and demand contraction. Despite these hurdles, the company made strides in its “Most of the World” expansion strategy by partnering with Handok in South Korea for the commercialization of Liraglutide. Mittal also highlighted Biocon’s progress in obtaining injectable product approvals in the U.S., such as Micafungin.

In the biosimilars division, Shreehas Tambe, CEO and Managing Director of Biocon Biologics Limited, that the division reported an 11% year-on-year growth and received several regulatory approvals, including FDA approval for YESAFILI™, an interchangeable biosimilar in the ophthalmology sector. This approval marks Biocon Biologics’ entry into the ophthalmology therapeutic area in the U.S.

Syngene, the research services arm, reported a slight decline in revenue, attributed to reduced funding for U.S. biotech firms. However, Jonathan Hunt, CEO and Managing Director of Syngene International Limited, remains optimistic about future prospects, citing improved biotech funding in the U.S. and the potential for capturing a significant share of increased biotech spending. Syngene is poised to benefit from the expansion of its biologics manufacturing capacity and ongoing pilot projects.