Biocon on Wednesday reported 71% year-on-year (YoY) jump in net profit to Rs 144 crore during Q1FY23, driven by sales of biosimilar insulin glargine in the US, despite rise in research & development expenses. The drug maker reported Rs 84 crore net profit in the corresponding period of previous year. Total revenues rose 23% YoY to Rs 2,217 crore in Q1FY23, compared to Rs 1,808 in Q1FY22.
The earnings before interest, tax, depreciation and amortization (EBITDA) grew 9% YoY to Rs 478 crore in Q1FY23 and EBITDA margins dropped 200 basis points to 22%. Biocon Biologics share which constitutes 45% of revenues reported 29% YoY growth to Rs Rs 977 crore in Q1FY23, while the generic business rose 19% to Rs 580 Cr.
Dr Arun Chandavarkar, managing director of Biocon Biologics said the company has initiated global clinical trials for two monoclonal antibodies and advanced its other pipeline assets which led to a 120% increase in R&D investments this quarter.
“Whilst this impacts EBITDA in the near term, such investments will create a strong portfolio to secure our future growth,” Chandravarkar said.
“Our strategic alliance with Serum Institute Life Sciences for vaccines and the acquisition of Viatris’ global biosimilars business are on track for closure in the second half of this calendar year,” he added.