Biocon’s Q4 Profit Slumps 42% as Covid-19 Pandemic Hampers Biosimilars Segment

Bengaluru: Biocon Ltd.’s fourth-quarter net profit fell 42% from the previous quarter as the covid-19 pandemic led to a decline in revenue of its flagship operation biosimilars for the first time in FY20.

Revenue from the biosimilars subsidiary fell 21% to Rs 357 crores due to operational challenges by the pandemic and less than expected contribution from the partners, the company said in a statement.

“We had excellent growth for three consecutive quarters in FY20 until the COVID-19 pandemic impacted our Q4 earnings. However, we expect the biosimilars business to recover Q1FY21 onwards on the back of growth opportunities of our key biosimilars supplemented by the expected U.S. launch of Insulin Glargine in mid-CY20,” said Dr Christiane Hamacher, CEO & managing director, Biocon Biologics India.

Revenue from branded formulations segment also slumped 12% for the same period last year, owing to supply and demand side challenges due to the nationwide lockdown.

However, net research and development expenses rose 36% from the previous quarter. The Bengaluru-based company extended services to Australia and Canada with the commercialisation of Fulphila, the biosimilar Pegfilgrastim. It also entered China, the world’s second largest pharma market, in a partnership with China Medical System Holdings for commercialising three generic formulations products.

Biocon’s small molecules and active pharmaceutical ingredients (API) posted a rise of 15% at Rs 541 crore led by growth in India. The Kiran Mazumdar Shaw-led company is also testing an antibody for curing Covid-19 which is set for human trials in Mumbai and Delhi.