Biocon Q2 Results FY2023, Net profit at Rs.168 crores

On 14th November 2022, Biocon announced its quarterly results for the second quarter of FY2023.
 

Q2FY23 Performance updates:

- Revenue from operations increased by 23% YoY to Rs 2384 crore
- The company’s EBITDA stood at Rs. 816 crores, up by 34%. EBITDA Margin was reported at 35% YoY.
- Net Profit stood at Rs. 168 crores, dropped by 10.3%.

Business Highlights:

- In Generic APIs & Generic Formulations segment revenue was reported at Rs 623 Crore, up 18%. During the quarter the company launched two important products Sitagliptin and Vildagliptin in the EU, enabled by the brownfield capacity expansions undertaken at its Bengaluru and Visakhapatnam facilities.
- The Company also received five product approvals across markets. In the EU, the company obtained three licenses, for Posaconazole, the company’s vertically integrated anti-fungal drug; Lenalidomide, an oncology product, and for Everolimus, used in the treatment of certain types of cancers and tumors. In the UK, it received approval for Posaconazole. 
- The company also received approvals in the UAE for Mycophenolic acid delayed-release tablets 360 mg, indicated for the prophylaxis of organ rejection in adult patients receiving kidney transplants.
- Biosimilars revenue stood at Rs. 997 Crore, up 34% YoY. Biocon Biologics’ YoY revenue growth was led by a strong performance of its biosimilars portfolio in advanced and emerging markets. Continued progress on two of BBL’s own research assets, bDenosumab and bUstekinumab, which are undergoing global clinical trials, as well as other pipeline molecules, raised BBL’s R&D investments this quarter by 142% YoY to Rs 184 Crore, representing 18% of BBL revenue. 
- In Q2FY23, the Viatris-led advanced markets business reported strong year-on-year growth on the back of improved performance by interchangeable bGlargine (Semglee), which reported an uptick in new prescription share of 14% and overall prescription share of 12%. 
- During the quarter, the Biocon Biologics-led commercial business reported good performance of its insulins and bTrastuzumab in key LATAM and APAC markets. 

- The transaction to acquire Viatris’ global biosimilars business is expected to conclude soon. On closing, Biocon Biologics will issue Compulsorily Convertible Preference Shares (CCPS) in the Company valued at USD 1 billion and make an upfront cash payment of USD 2 billion to Viatris. To fund the cash component of the deal, Biocon Biologics has secured USD 1.2 billion of debt. The balance will be funded through an equity infusion of USD 650 million by Biocon and USD 150 million by Serum. Biocon will fund USD 230 million from existing reserves and USD 420 million through mezzanine financing. Biocon is in the process of securing investments to retire the mezzanine financing, post-deal closure. Biocon’s stake in Biocon Biologics will be 68% post-conclusion of the Viatris and Serum transactions.

Commenting on the results, Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics, said: “We reported a strong consolidated revenue growth of 23% YoY for Q2FY23 at Rs 2,384 Crore driven by 34% growth in Biosimilars, 26% in Research Services and 18% in the Generics business. Our Gross R&D spends increased by 52% YoY this quarter to Rs 252 Crore reflecting our advancing pipeline that will drive our future growth. Core EBITDA was up by 34% at Rs 816 Crore, representing healthy core operating margins of 35% versus 33% in the same quarter last year. “We have delivered a resilient performance in H1FY23, with all segments delivering strong revenue growth. We expect to consolidate on this performance in the second half of FY23. Enhanced capacities and new launches will drive growth for our API and Generic Formulations business, while continued business momentum should help Syngene achieve its guidance for the full year. “The consolidation of Viatris’ global biosimilars business and the strategic vaccines alliance with Serum Institute will add to the growth of the Biosimilars business in H2FY23. We have secured necessary financing and obtained relevant approvals for the Viatris transaction, which is expected to close shortly.”