Biocon's Q1 FY '09 impacted by exceptional factors

Bangalore, July 17 (ANI/Business Wire India): Biocon Limited today announced its financial performance for the three months ended June 30, 2008.

Performance Highlights:- Sales on a like for like basis (i.e. excluding enzymes) increased by seven per cent.

-- Pre tax profits at a consolidated level were impacted by exchange losses across the group by Rs. 6 crores. A Mark to Market provision of Rs. 26 crores added to the impact.

-- Absence of licensing income affected Q1 FY '09 profits. Licensing income is event driven and inherently variable across quarters. Licensing Income accounted for Rs. 17 crores in Q1 FY '08.

-- Biopharmaceutical business (excluding licensing income) showed 40 per cent increase in PAT (from Rs. 28 crores in Q-1 FY '08 to Rs. 39 crores in Q-1 FY '09) demonstrating strong profit growth in our core biopharmaceutical business.

-- Branded formulations encompassing Cardio-Diabetes, Nephrology and Oncology delivered good growth.

-- Syngene had a difficult quarter due to a number of factors. The impact of currency loss combined with operational delays resulted in a Rs. 6 crores decline in operating profit.

-- Clinigene is now fully operational at its new facility and is on track to deliver 100 per cent growth this fiscal.

-- Biocon's balance sheet remains strong. Net cash as on June 30, 2008 was Rs. 74 crores.

-- Clinical development of the Company's lead programs viz., IN105 (Oral Insulin) and T1h (Anti CD6 Monoclonal antibody) are progressing well.- Biocon filed 23 new patents in Q1 FY '09 bringing the total tally to 881 filed and 154 granted patents.

-- Biocon has been ranked the 20th leading Biotechnology company in the world and No:1 in Asia by a reputed US trade journal.

Commenting on the results, Kiran Mazumdar-Shaw, Chairman and Managing Director, Biocon Limited, said: "Biocon's Q1 FY '09 performance has been unfortunately impacted by Rupee volatility which has seen us make a Mark to Market provision of Rs. 26 crores. We have consciously been conservative in making this provision. I believe that our business fundamentals are robust, which is well demonstrated by the strong profit growth in our core biopharmaceutical business."

"The absence of licensing income this quarter has had a disproportionate impact on profitability. However, we are confident that licensing income will be significant this fiscal. We are particularly encouraged by the good growth demonstrated by our branded formulations where several brands have attained high rankings in their product segments in India.

INSUGEN(r) has now garnered an all India market share of ~15 per cent in the vial segment," she added.

Kiran said that Syngene has had a particularly difficult quarter.

Management is confident of compensating for this in the quarters ahead especially with the BMS facility becoming fully operational in Q3 FY '09.

Clinigene is now fully operational at its new facility and is on track to deliver good growth this fiscal, she added.

"We are making excellent progress on the research front with several programs approaching a licensing phase over the next 2 years, which is expected to provide attractive ROI. We expect the quarters ahead to compensate for the exchange losses booked this quarter and end the year with improved profitability," she further said.

ANI