Biocon Q3FY23 revenue at Rs 3,020 crore, up 36 percent

Bengaluru: Global biopharmaceuticals company Biocon Ltd on Tuesday announced its net revenue from operations for the quarter, ending December 31, 2022. increased by 36 percent to Rs 3,020 crore from Rs 2,223 crore in the same period last year.

Executive Chairperson, Biocon and Biocon Biologics Kiran Mazumdar-Shaw said, "Q3 FY23 has been an eventful quarter which saw the completion of the global acquisition of our partnered Biosimilars business from Viatris on Nov 29, 2022.

"We are now implementing country-wise integration of the business to maximise the value of the combined entity to propel growth."

Biosimilars, as a business segment, offers differentiated growth to Biocon Biologics based on vertical integration and a unique portfolio of Insulins and antibody based immunotherapeutics, she added.

"This quarter captures a fraction of the acquired business, but from Q4FY23 onwards, the financials will recognise the entire Biosimilars business."

"Biocon's consolidated revenues for the quarter grew 36 percent 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 percent 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 percent and 18 percent, respectively.

"The advancement of our research pipeline led to Rs 337 crore Net R&D investments this quarter, which will drive Biocon's future growth," Mazumdar-Shaw said.

"We reported a strong EBITDA growth of 35 percent to Rs 723 crore, representing a healthy EBITDA margin of 24 percent. Core EBITDA grew 49 percent to Rs 1,069 crore."

She also said that a part of their strategy to reduce the acquisition debt, Biocon has raised funds through a partial divestment of its stake in Syngene. "We expect to end FY23 on a strong note with healthy growth across businesses. Biocon Biologics is tracking towards exiting the year at a $1 billion trajectory, excluding vaccines."

Biocon said that the generics business' third-quarter results were in line with expectations, delivering healthy sequential and year-on-year revenue growth, with 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 US market.

"Our geographical expansion continued to gain traction with the signing of a partnership agreement with Zentiva for commercialising 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 Amid-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 a geographical expansion, new product launches, strengthening our product pipeline, and executing on key capex projects," Biocon Ltd CEO and Managing Director, Siddharth Mittal, said.