Biocon Ltd has posted a net profit after taxes, minority interest and share of profit / (loss) of associates of Rs. 978mn for the quarter ended March 31, 2012 as compared to Rs. 1008.10 mn for the quarter ended March 31, 2011.
Total Income has increased from Rs. 4877.00 mn for the quarter ended March 31, 2011 to Rs. 6114.90 mn for the quarter ended March 31, 2012.
The Group has posted a net profit after taxes, minority interest and share of profit / (loss) of associates of Rs. 3384.30 mn for the year ended March 31, 2012 as compared to Rs. 3675.20 million for the year ended March 31, 2011. Total Income has increased from Rs. 18576.80 mn for the year ended March 31, 2011 to Rs. 21483.20 mn for the year ended March 31, 2012.
Commenting on the results, Chairman and Managing Director Kiran Mazumdar-Shaw stated, “I am pleased with the overall performance that we have delivered in FY12. Group Sales have risen by 16% and PAT was sustained at previous year levels despite lower net licensing income. We have delivered particularly strong growth in our Research Services & Branded Formulations business verticals. Our Balance Sheet remains robust and our cash position is strong. The global economic outlook remains uncertain. However, we are confident that we will make significant progress across all our businesses.”
Business Performance and Outlook (Vertical-wise)
Small Molecules & Biosimilars
The base business has seen steady growth over the last fiscal despite pricing pressure. The current portfolio has been strengthened by the introduction of Fidaxomicin supplies to Optimer Pharma.
The Biosimilar MAbs portfolio partnered with Mylan continues to make steady progress. Biosimilar Trastuzumab (Herceptin), aimed at India and the Emerging Markets, has entered multi-centric Phase III Clinical Trials in India.
Inauguration of Biocon Research Centre (BRC):
Biocon unveiled its state-of-the art, integrated R&D Centre on April 5, 2012. Expressing his delight, Nobel laureate Prof. Kurt Wüthrich who inaugurated the facility said, “I am quite enthralled with the Biocon Research Centre’s capability which is at par with international standards. I will keenly watch the outcome of innovation from this centre as I see a lot of promise in the scientific talent here. I extend my best wishes to Biocon”.
The Indian pharmaceutical market grew at 15% YoY (AIOCD, MAT Feb 2012). Reflecting the accelerated growth and growing clout of chronic therapies in the market, our branded formulations division grew 39% YoY in FY12.
Biocon continues to advance its novel portfolio, including the Anti-CD20 MAb program.
Itolizumab: Itolizumab, the first indigenously developed novel monoclonal antibody, completed a Phase III study for the treatment of Psoriasis in Indian patients in December 2011. The 52-week study met its primary endpoint and multiple secondary end points. The full clinical study report and the regulatory submission package is currently being prepared for submission to the authorities. Itolizumab has also shown promising preliminary results in the treatment of Rheumatoid Arthritis (RA) and Multiple Sclerosis (MS).
Peptide Hybrid: A global phase 1 study under the US IND filed by our partner, Amylin, is ongoing.We continue to actively progress our partnering efforts for both the leading R&D assets – Itolizumab and IN-105.
Induction of new Board member
Biocon announced the induction of former Deputy Prime Minister of Ireland, Mary Harney as an additional non-executive Board member of Biocon Limited. Mary Harney (born 11 March 1953) served as Tánaiste (Deputy Prime Minister) of the Irish Republic from 1997–2006. She also held the position of Minister for Enterprise, Trade and Employment from 1997–2004, and as Minister for Health and Children from 2004 to 2011. She was leader of the Progressive Democrats party between 1993–2006 and again from 2007–08. During her illustrious political career, she initiated far reaching health care reforms and played a key role in positioning Ireland as a key IT hub in Europe. Mrs. Harney was also Ireland's representative to the European Council of Ministers for the Software Patents Directive.
This fiscal saw strong continuing momentum with recent investments in chemistry, biology and biologics services coming into fruition. In FY12, Syngene & Clinigene together grew revenues by 29% YoY on the back of strong expansion from existing customers and a steady flow of new customer contracts. Moving up the value chain with differential models and more integrated service offerings has contributed to improved profitability with EBITDA margin firming to 33% in FY12.
During the year, Syngene International Limited acquired 100% of the shareholding of Clinigene International Limited from Biocon Limited to ensure seamless operational integration of the combined research service offerings.
Commenting on the performance and the recent developments Peter Bains, Director, Syngene International, said, ‘’2012 has been one of the strongest years of delivery for our Research Services. Our strategy has been to invest in strengthening our scientific team and capability platforms in discovery and development to allow us to build stronger, more integrated and value creating collaborations to support our customers”.