Biocon announces bonus, special dividend as FY08 net climbs 13%

BANGALORE: India���s largest biotechnology company Biocon on Tuesday reported a 13% increase in profit for 2007-08 to Rs 225 crore on improved revenues, especially in its contract research business. The company announced the issue of bonus shares and a special dividend.

The company said one bonus shares would be issued for each held and a special dividend of Rs 2 per share has been recommended, in addition to the annual dividend of Rs 3 per share. Consolidated revenue rose by 19% to Rs 1,044 crore as the operating margin improved by 2% to 31%.

Chairman and Managing Director Kiran Mazumdar-Shaw said the bonus issue was aimed at increasing the number of tradeable shares. Ms Shaw and her associates own 60.9% of the equity of the company, whose paid-up capital is Rs 50 crore.

The special dividend, which results from the sale of Biocon���s enzymes business in July 2007 to Denmark���s Novozymes for $ 115 million, was meant as a reward for shareholders, she added.

���We are on the springboard for a major jump. While in the short term the focus would be on generics and insulin, in the medium term we are looking at bio-similars and the long-term bet is on the drug discovery programme,��� Ms Shaw said. The company does not provide earnings guidance. A year-end report by broking house Motilal Oswal said it expected Biocon���s revenue to grow by 13%-15% in 2008-09.

���While some of Biocon���s initiatives appear promising, their visibility is poor. Launch of bio-generics in regulated markets remains the key long-term trigger; however, clarity on the regulatory pathway is still awaited from the US Food and Drug Administration,��� the report said. The company stock closed up 0.79% at Rs 508.85 on the BSE. The benchmark Sensex index rose by 0.27%.