Biocon Revenue up by 21 pc for Q1 at Rs 212 cr

Bangalore, July 19: Biotech leader Biocon today reported a consolidated revenue of Rs 212 crore for the first quarter of the current fiscal, despite delayed entry of Simvastatin and Pravastatin into the US market on account of 180 days exclusivity granted.

EBITDA margins were at 26 per cent, down four per cent from the corresponding quarter last year. This was mainly due to an adverse impact of Rs three crore due to Foreign Exchange movement, lower statin prices and a 50 per cent increase in R and D spend, a company release here said.

Profit After Tax had been maintained at Rs 39 crore, despite higher fixed costs on account of Biocon Park .

Commenting on the results, Biocon Chairman and Managing Director Kiran Mazumdar-Shaw said ''Our financial performance for Q1 FY 07 has generated good profitability despite challenges. This underpins our confidence in pursuing discovery-led research programs. We believe that our innovation led business initiatives have the potential to realise exponential growth in the long term and deliver superior shareholder value in the future.'' The Company said in a major development in Indian Healthcare it had received Indian Regulatory approval for marketing its first proprietary biotech molecule for the treatment of cancer, BIOMAb EGFR, partnered with CIMAB. Biocon's newly formed Oncology division would launch its first product during the second quarter of next fiscal year. The Company had commenced Phase I human clinical trials for its Oral Insulin molecule, IN105. IND filings remain on track.

The income from Research Services increased to Rs 29 crore, a 52 per cent growth over the frist three months of previous fiscal. Ms Mazumdhar-Shaw said the year ahead would continue to be challenging due to market conditions and the impact of depreciation at the new facilities at Biocon Park. She said the new growth drivers viz. Insulin, immuno-suppressants, branded formulations and monoclonal antibodies were building the bio-pharmaceuticals business in a more robust manner and reducing the dependence on Statins.

She said ''Our marketing arrangement with Bayer HealthCare provides us with a large market opportunity for Insulin in China.

New research contracts both at Syngene and Clinigene will deliver additional growth. The new capacities at Biocon Park will come fully on stream this fiscal and will also contribute to overall growth. We have focused our research efforts on the two most sought after disease segments: Diabetes and Oncology and we are confident that they will deliver on their promise with BIOMAb EGFR being the first off the block,'' she added.

Stating that Diabetes had been recognised as the 21st pandemic, Ms Mazumdar-Shaw said the market for diabetes drugs was forecast to double to US Dollar 35 billion by 2012 where Biocon expected to garner a significant share through its Insulin-based portfolio.

She said Biocon had signed a licensing agreement with multinational healthcare corporation Bayer HealthCare (BHC), a division of globalpharma major, Bayer AG, for the exclusive marketing and trademark rights for INSUGEN in the Chinese market.

With this agreement Bayer HealthCare would also have an option to expand the marketing rights to other countries in Asia Pacific.

After completion of necessary local registration trials, INSUGEN, a recombinant human insulin, was expected to be launched by the first quarter of fiscal 2007-08 in China. This was an important milestone for Biocon's foray into branded formulations in the international market, she explained.

UNI