Biocon second quarter net drops 3.94% to Rs 85.70 crore

BANGALORE: Biotechnology firm Biocon’s net profit dipped by 3.94% to Rs 85.70 crore for the second quarter of this fiscal. However, if compared on like-to-like basis without the contribution of Axicorp, the firm posted a 5% increase in the profit. The Bangalore-based firm gave up 70% of its stake in Axicorp this April for a consideration of 40 million euro to the original promoters.

The growth in branded formulation segment and research services have been the propelling factor, said CMD Kiran Mazundar-Shaw. The company’s cash reserve is around Rs 500 crore and saw a 20.95% push in its net sales for the quarter to Rs 508.44 crore compared to same quarter of FY12. Biocon’s core business of branded formulation segments, which has verticals like diabetology, oncotherapeutics, nephrology, immunotherapy and comprehensive care under it, clocked 37% growth in the first half of this fiscal compared to corresponding period last year.

The firm expects to make this segment Rs 500-crore business in the next two fiscals. However, licensing income muted the margins, Shaw said. “It could have been higher but regulatory processes got delayed and timing needs to be right. We are confident that the second half will be stronger,” said Shaw.

The company’s licensing development fee for the quarter was Rs 37 crore and around 20% of it was the net income, said a company spokesperson.