India’s Biocon posts more than fourfold jump in quarterly profit on strong biosimilars growth

Aug 5 (Reuters) – Indian biopharmaceutical company Biocon reported a more than fourfold jump in first-quarter net profit on Wednesday on strong revenue growth from its biosimilars segment.

• Consolidated net profit climbed to 1.41 billion rupees ($14.72 million) in the three months ended June 30.

• Revenue from its biopharma segment jumped 17% to 36.15 billion rupees. The segment, which includes biosimilars and generic drugs, accounts for 83% of Biocon’s overall revenue.

• Biosimilars are lower-cost versions of complex biological drugs used to treat illnesses such as cancer, rheumatoid arthritis, psoriasis and diabetes.

• A favourable policy environment for biosimilars and expanded manufacturing capabilities in the U.S. will help long-term opportunities across North America, the company’s biggest market, said executive chairperson and founder Kiran Mazumdar-Shaw.

• Biocon’s services segment recorded a nearly 16% drop in revenue in the quarter.

• Revenue from the sale of products was up by 16.5% from last year, while revenue from the sale of services was down about 15%.

• Expenses grew 8.7%, largely due to an increase in cost of materials consumed.

• Shares of Biocon closed 0.8% higher ahead of the results.

($1 = 95.1175 Indian rupees)

(Reporting by Abhirami G in Bengaluru; Editing by Janane Venkatraman)