Biocon Q1 net dips 8.8% to Rs 70 crore; Axicorp absence weighs

BANGALORE: Biotechnology firm Biocon's consolidated net profit for the first quarter fell 8.78% to 70 crore year on year, impacted by the absence of German subsidiary Axicorp. In the comparative period last year, Axicorp, which Biocon exited in April, contributed 12 crore to the net profit.

Excluding Axicorp's last year's contribution, the company reported a profit rise of 7.4%. "Axicorp made a small contribution to the margins and added to the top line. The margins have increased from 21% to 29%, whereas the deficit to the top line would be overcome in coming quarters," CMD Kiran Mazumdar-Shaw said. The firm's licensing income saw a dip of 30% to 14 crore from last year, which Shaw said, was because of its dependence on timelines and regulatory approvals.

The product that would mark Biocon's coming of age is its oral insulin and Shaw said a pact can be expected during this fiscal. Licensing partners for Itolizumab for treatment of psoriasis and BVX20, which would be used for oncology, may be realised this fiscal.