Bangalore, July 20, 2006
Revenues at Rs: 213 crores. EBITDA at Rs: 55 crores. PAT at Rs: 39 crores
Biocon Limited today announced its financial performance for the three months ended June 30th, 2006.
Note: The discussions in this release reflect the audited financial performance of Biocon Limited based on Indian GAAP on a consolidated basis. This considers the financial performance of Biocon Limited, its wholly owned subsidiaries Syngene International Private Limited and Clinigene International Private Limited and its 51% joint venture Biocon Biopharmaceuticals Private Limited.
Performance Highlights
Consolidated Sales at Rs: 212 crores increased 22% over Q1-FY06 (Rs:174 crores). This is despite delayed entry of Simvastatin and Pravastatin into US market on account of 180 days exclusivity granted.
EBITDA margins were at 26%, down 4% from Q1-FY06 (30%). This is attributable to an adverse impact of Rs: 3 crores due to Foreign Exchange movement, lower statin prices and a 50% increase in R and D spend, over Q1-FY06.
PAT has been maintained at Rs: 39 crores despite higher fixed costs on account of Biocon Park.
R and D expenditure increased by 50% to Rs: 6 crores over Q1-FY06 (Rs: 4 crores) to accelerate our discovery-led R and D programs.
Biocon signed an exclusive agreement with Bayer HealthCare for marketing INSUGEN to the China market. Registration in China is expected to be completed by the end of CY07 and sales are envisaged to commence in CY08. This heralds Biocon's entry into the International branded formulations market.
Biocon 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 expects to launch the product during Q2-FY07. This is a major development in Indian healthcare.
Biocon has commenced Phase I human clinical trials for its Oral Insulin molecule, IN105. IND filings remain on track. Income from Research Services increased to Rs: 29 crores, a 52% growth over Q1-FY06.
OUT LOOK
Commenting on the results, Kiran Mazumdar-Shaw, Chairman and Managing Director, Biocon Limited , 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 realize exponential growth in the long term and deliver superior shareholder value in the future.
The year ahead will continue to be challenging due to market conditions and the impact of depreciation at our new facilities at Biocon Park. The new growth drivers viz. Insulin, immuno-suppressants, branded formulations and monoclonal antibodies are building the bio-pharmaceuticals business in a more robust manner and reducing the dependence on Statins. 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. It is also important to highlight the fact that Diabetes is recognized as a 21st century pandemic and the market for diabetes drugs is forecast to double to $35 billion by 2012 where Biocon expects to garner a significant share through its Insulin based portfolio."
CORPORATE DEVELOPMENTS
Biocon signs an exclusive marketing agreement with Bayer HealthCare
Biocon has signed a licensing agreement with multinational healthcare corporation Bayer HealthCare (BHC), a division of global pharma major, Bayer AG, for the exclusive marketing and trademark rights for INSUGEN for the Chinese market. With this agreement Bayer HealthCare will 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, is expected to be launched by Q1-FY08 in China. This is an important milestone for Biocon's foray into branded formulations in the international market.
BIOMAb EGFR receives nod from DCGI for Indian market.
DCGI has granted approval for the marketing of BIOMAb EGFR in the Indian market. The product will first be used in the treatment of head and neck cancers and later extended to other indications viz. Colorectal, Brain, Breast, Pancreatic and Lung cancers. This will be the first proprietary product to be marketed by Biocon. This demonstrates the success of Biocon's innovation led strategy.
Biocon has commenced Phase I human clinical trials for IN105
Biocon has commenced Phase I human clinical trials of its oral insulin molecule, IN105 to establish Proof of concept of its proprietary oral delivery technology, recently acquired from Nobex. The studies are expected to be completed by Q3-FY07 and will be used to support IND filings with International Regulatory Authorities.
About Biocon
Established in 1978, Biocon Limited is one of India's premier biotechnology companies. The company has a robust product portfolio of recombinant biotherapeutics, statins and immuno-suppresants with strongly growing sales and profits. We employ more than 600 highly qualified scientists at our campus in Bangalore. Biocon and its three subsidiary companies, Syngene International Ltd., Clinigene International Ltd and Biocon Biopharmaceuticals Pvt Ltd form a fully integrated biopharmaceutical company, specializing in custom research, clinical research, biopharmaceuticals and enzymes. With successful initiatives in clinical development, bioprocessing and global marketing, Biocon delivers products and solutions to partners and customers across the globe. Many of these products have USFDA and EMEA acceptance. Biocon launched world's first human recombinant human insulin, INSUGEN in November 2004 using Pichia expression.
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