Biocon posts strong profitability in Q3FY16

Biocon declared its financial results. The company's revenue increased by 8.73 per cent to Rs 836 crore in Q3FY16 as compared to same period in previous fiscal year. Its total expenditure increased by 6.24 per cent to Rs 647 crore in Q3FY16 on a yearly basis.

Biocon's EBITDA is boosted by 18.22 per cent to Rs 189 crore in Q3FY16 as compared to same period in previous financial year. The company's EBITDA margin expanded by 182 basis points to 22.61 per cent in Q3FY16 on a yearly basis. Its interest expense reduced by 68.68 per cent to Rs 1.5 crore and other income rose by almost double to Rs 19.7 crore in Q3FY16 as compared to same period in previous financial year. Biocon posted net profit of Rs 103 crore in Q3FY16 with a 13.27 per cent growth on a yearly basis. The company's net profit margin expanded by 49 basis points to 12.31 per cent in Q3FY16 as compared to same period in previous fiscal year.

On segmental revenue front, Biocon earned 54.83 per cent from Biopharmaceutical segment; 12.56 per cent from Branded Formulation segment; and remaining 32.61 per cent from Contract Research segment during December 2015 quarter.

Considering nine months results, Biocon's revenue increased by 12 per cent to Rs 2570 crore in 9MFY16, as compared to same period in previous financial year. The company's EBITDA too rose by 22 per cent to Rs 667 crore in 9MFY16 on a yearly basis. Its net profit jumped by 81 per cent to Rs 535 crore in 9MFY16 as compared to same period in previous fiscal year.

Biocon's potent, Oral Solid Dosage(OSD), formulations facility in Bengaluru has commenced during Q3FY16. The company entered partnership with Mylan, and the new association includes six biosimilar programs; and three insulin analog programs. It has lined up 20 to 25 dossiers for ANDA submission over the next few years.Biocon's process qualification for insulin facility in Malaysia has commenced, and has plans to file for approvals in FY17.

The share price of Biocon increased by 2.28 per cent on bourses in early trades; and is trading at Rs 491.35 on an intraday basis.

Biocon manufactures pharmaceuticals; medicinal; chemical; and botanical products. The company is engaged in developing biologics and biosimilars for addressing chronic diseases, such as cancer; diabetes; and autoimmune conditions for patients across the world. Its products include Insugen; Basalog; BIOMAb EGFR; Abraxane, CANMAb and ALZUMAb. BIOMAb EGFR is a biologic that provides therapy for head and neck cancer. CANMAb is a follow-on Trastuzumab for Human Epidermal growth factor Receptor 2 (HER2)-a gene that could be responsible for positive metastatic breast Cancer. Biocon also offers Insugen, which is a generic insulin brand. Abraxane is a chemotherapy brand. ALZUMAb is recommended for the treatment of psoriasis.