Biocon net profit up by 36 per cent, sales grew by 28 per cent

Bangalore, July 18 (UNI) Biotech major BIOCON Ltd today announced a 36 per cent net profit for the first quarter of the current fiscal with sales growing by 28 per cent.

The Company in a release said while all business segments delivered robust growth, Biopharma performed strongly, while margins in services were restrained by currency appreciation.

Biocon reported a total sale of Rs 271 crore during the quarter as against Rs 213 crore reported during the same quarter last year.

Net profit stood at Rs 53 crore as against Rs 39 crore earned during the April-June quarter in fiscal 2007. Clinical research saw a 52 per cent jump with a sales of Rs 44 crore as against Rs 29 crore during the previous year's first quarter. Enzymes recorded a negative three per cent growth, while Bipharma sales went up by 28 per cent at Rs 206 crore.

Biocon said branded products for Nephrology, Oncology and Cardio Diabetes performed strongly. Biocon licenses G-CSF (granulocyte-colony stimulating factor) to a global biopharmaceutical company for North America and the European Union It said it had also entered into an exclusive agreement with Invitrogen to market Insulin to the global cell culture market.

On the functioning of its subsidiaries, the company said Clinigene moved its operations to a new, state of the art, dedicated facility while Syngene commenced construction of the dedicated facility for Bristol Myers Squibb. Outlook.

Chairman and Managing Director Kiran Mazumdar Shaw, commenting on the first quarter result, said ''I am pleased that we have delivered robust and growing profits at a time when we are challenged with increased research and development investments, strengthening currency and rising operating costs''. The impressive result had been possible due to expanded markets for bio-therapeutics as well as significant licensing income from R and D programmes, she added.

Stating that the year ahead would be exciting but demanding she said ''whilst we will address the challenges posed by a depreciating dollar as well as increased operating costs through a series of measures that improve operating efficiency, we remain optimistic about the future thanks to our business verticals that are balanced between products and services''.

UNI