Biocon Q1FY22 net profit at Rs84cr; John Shaw retires from the Board of Directors; stock dips ~1%

"Globally, we see strong demand for biosimilars and generic drugs, given the growing emphasis on affordable drug pricing," Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, said.

Jul 23, 2021 02:07 IST India Infoline News Service

Biocon
Biocon posted Q1FY22 net profit at Rs84cr as against Rs149cr in Q1FY21. Q1FY22 Net profit excluding share of loss in Bicara stood at Rs142cr, the company said.

The company’s consolidated revenue grew 6% to Rs1,808cr in Q1FY22 from Rs1,712cr in Q1FY21.

Earnings before Interest, Depreciation and Amortization (EBITDA) was Rs437cr in Q1FY22 vs. Rs432cr in Q1FY21. Its Core EBITDA margins were at 30%.

John Shaw, Vice-Chairman and Non-Executive Director, Biocon, will retire from Biocon's Board of Directors due to health reasons, on July 23, 2021, at the conclusion of its Annual General Meeting. As a key member of the Company’s Board and the management team since 1999, John Shaw has contributed majorly to the transformation of Biocon from a small enzymes company, to a globally recognized biopharmaceutical company. Over the past 22 years, John Shaw has played an important role in building Biocon, ensuring the highest levels of corporate governance in the Company, as well as, contributing to the financial and strategic development of the Group.

On behalf of the Board, we express our deep appreciation and gratitude to John Shaw, for his stewardship and guidance, the company said.

Further, Biocon appointed Dr S Vijaya Kumar as Head of Operations, to lead the Manufacturing, Projects and EHS (Environment, Health and Safety) functions for the Generics business. Kumar is an industry veteran with more than 30 years of extensive experience across manufacturing and engineering in global, diversified setups.

Commenting on the results, Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, said: “Q1FY22 P&L was also impacted by a share of loss in its Boston-based associate start-up entity, Bicara Therapeutics Inc. Excluding this share of loss, Profit before Tax was a healthy Rs 224 Crore. Novel Biologics are investment intensive and we will explore external venture funding to support clinical development for long-term value creation. Business sentiments are favorable for Biosimilars, Generics and Research Services. Globally, we see a strong demand for biosimilars and generic drugs, given the growing emphasis on affordable drug pricing. Net Profit, excluding the share of loss from Bicara, was at Rs 142 Crore and reported Net profit was at Rs 84 Crore.”

“The outlook for the rest of the year is promising with several drug approvals on the anvil, contingent to timely U.S. FDA onsite inspections in India and Malaysia, whilst Research Services continue to see rising demand.” “John Shaw has decided to step down from the Board effective the end of the Annual General Meeting this year, due to health reasons. My colleagues on the Board, join me to place on record our heartfelt appreciation for the critical and invaluable role he has played in building Biocon,” she added.

Commenting on the Generics segment performance, Siddharth Mittal, CEO & Managing Director, Biocon Limited, said, “The Generics business delivered a subdued performance as the second wave of the pandemic resulted in operational and supply chain challenges that impacted our API manufacturing. With the number of COVID-19 cases starting to decline, we expect operational and supply chain challenges to normalise in the coming quarter. Additionally, the comparable period in the previous fiscal benefited from customers stockpiling APIs on account of Covid-related uncertainties.”

“Our statin formulations portfolio in the US, comprising Atorvastatin, Simvastatin and Rosuvastatin, held on to its market share for the quarter, even as we continue to see increasing pricing pressure,” Siddharth Mittal added.

Biocon Ltd is currently trading at Rs399.50 down by Rs3.3 or 0.82% from its previous closing of Rs402.80 on the BSE. The scrip opened at Rs392 and has touched a high and low of Rs401.45 and Rs387.90 respectively.

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