Biocon’s Q3 FY23 revenue stands at Rs 3,020 crore, up by 36%

The company's revenue from operations surged 35% YoY to Rs 2,941 crore for the third quarter under review, compared with Rs 2,174 crore in the last-year period

Bengaluru/New Delhi: The global biopharmaceuticals major, Biocon has announced its consolidated financial results for the third quarter ended December 31, 2022. The company’s revenue from operations surged 35% YoY to Rs 2,941 crore for the third quarter under review, compared with Rs 2,174 crore in the last-year period. On a sequential basis, revenue rose 27% from Rs 2,320 crore clocked in the preceding quarter.
The company’s EBITDA rose 35% year-on-year to Rs 723 crore for the quarter with a healthy EBITDA margin of 24%.
However, the company reported a loss of Rs 42 crore for the December quarter as against a profit of Rs 187 crore in the previous-year period, mainly on account of an exceptional item of Rs 271 crore due to Viatris deal related expenses. The profit was also impacted due to dilution of Biocon’s stake in Biocon Biologics and Syngene. Net profit for the quarter, excluding an exceptional item, stood at Rs 140 crore.
“Biocon’s consolidated revenues for the quarter grew 36% to Rs 3,020 crore on the back of robust performance across all its three businesses. The biggest contribution came from the Biosimilars business, which reported a 54% increase in revenues to Rs 1,507 crore. Research Services revenues at Rs 786 crore and Generics business revenues at Rs 718 crore, grew 23% and 18%, respectively. The advancement of research pipeline led to Rs 337 crore Net R&D investments this quarter, which will drive Biocon’s future growth. We reported a strong EBITDA growth of 35% to Rs 723 crore, representing a healthy EBITDA margin of 24%. Core EBITDA grew 49% to Rs 1,069 crore,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics.
“We expect to end FY23 on a strong note with healthy growth across businesses. Biocon Biologics is tracking towards exiting the year at a USD 1 billion trajectory, excluding vaccines,” added Ms Shaw.
“The Generics business’ third-quarter results were in line with our expectations, delivering healthy sequential and year-on-year revenue growth. The performance was driven by immunosuppressant API sales and Generic Formulations, which saw an uptick in the sales of statins as well as recent product launches. Margins, compared to the previous year, were muted by the product mix and continuing pricing pressure in the U.S. market,” said Siddharth Mittal, CEO & Managing Director, Biocon Limited.
Mittal stated further: “Our geographical expansion continued to gain traction with the signing of a partnership agreement with Zentiva for commercializing Liraglutide in Europe, as well as a long-term strategic partnership with Farmanguinhos in Brazil for the supply and tech-transfer of a finished dose formulation immunosuppressant product. These partnerships will contribute towards attaining mid-teens growth in the short to medium term. We also secured approvals for some of our key formulation products in Europe.”
 Our focus remains on geographical expansion, new product launches, strengthening our product pipeline and executing on key capex projects,” added Mittal.
“Biocon Biologics recorded its highest ever quarterly revenue of Rs 1,507 crore, reflecting a growth of 54% on the back of our acquisition of Viatris’ biosimilars business and continued growth in BBL led markets. This strong performance has translated to an EBITDA growth of 53% to Rs 361 crore. This landmark acquisition marks an  inflection point in our transformational journey and positions Biocon Biologics as a unique, fully integrated, leading global biosimilars enterprise,” stated Shreehas Tambe, CEO & Managing Director, Biocon Biologics Ltd.
“We have drawn up a comprehensive plan to integrate the acquired Viatris business into Biocon Biologics and migration of business operations is scheduled in a phased manner to ensure business continuity and uninterrupted service to customers and patients,” added Tambe.
“We continue to see good demand in the main client markets of U.S. and Europe which – combined with strong execution and forward planning – has helped us deliver solid revenue growth in the third quarter. We are pleased to report positive performances from all divisions this quarter. Growth in our research divisions, Discovery Services and the Dedicated Centres, was solid. In Development Services, repeat orders from existing clients, as well as an increase in the number of collaborations with emerging biopharma companies drove a robust performance,” said Jonathan Hunt, CEO & Managing Director, Syngene.
“In Manufacturing, the highlight of the quarter was the successful inspection of our biologics facilities by the U.S. FDA, EMA and MHRA. Based on our strong performance to date, we are confident of meeting the upgraded annual revenue growth guidance of high teens,” added Hunt.