Bio­con Q3 profit rises 13pc

The Pak Banker - - COMPANIES/BOSS -

Bio­con Ltd's net profit rose 13% in the quar­ter ended 31 De­cem­ber on im­proved sales at its con­tract re­search arm Syn­gene In­ter­na­tional Ltd, which coun­tered slug­gish growth at its bio-phar­ma­ceu­ti­cal divi­sion.

The Ben­galuru-based com­pany posted a net profit of Rs.103 crore in the fis­cal third quar­ter, com­pared with Rs.91crore a year ear­lier. Rev­enue rose 9% to Rs.836.4 crore from Rs.769.2 crore in the year-ago pe­riod. Sales of bio-phar­ma­ceu­ti­cals, which con­sist of small mol­e­cules, ac­tive phar­ma­ceu­ti­cal in­gre­di­ents (API), generic for­mu­la­tions, biosim­i­lars and branded for­mu­la­tions, grew 3% to Rs.558 crore in the third quar­ter.

"The over­all bio-pharma busi­ness con­tin­ues to re­port a steady growth, with an in­creas­ing con­tri­bu­tion from im­muno­sup­pres­sants and generic in­sulins in the emerg­ing mar­kets," Bio­con said in a state­ment. Syn­gene In­ter­na­tional's net profit rose 31.25% to Rs.58.8 crore in the quar­ter from Rs.44.8 crore in the year-ago pe­riod. Syn­gene's rev­enue rose to Rs.280.4 crore from Rs.227.6 crore.

Re­search and de­vel­op­ment ex­penses rose 45% to Rs.67.9 crore in the quar­ter. "Ex­clud­ing profit con­tri­bu­tion from Syn­gene, Bio­con's net profit this quar­ter has in­creased by 28% y-o-y de­spite a 45% jump in R&D spends and a sig­nif­i­cant in­crease in tax," said Ki­ran Mazum­dar-Shaw, chair­man and man­ag­ing di­rec­tor of Bio­con.

"Bio­con's four most ad­vanced biosim­i­lar and generic in­sulin pro­grams, In­sulin Glargine, Trastuzumab, Peg­fil­gras­tim and Adal­i­mumab, con­tinue to cross crit­i­cal clin­i­cal mile­stones and are on track for reg­u­la­tory fil­ings in US and Europe in the cal­en­dar year 2016," said Mazum­dar-Shaw said.

"Th­ese fil­ings are likely to pro­vide us an early mover ad­van­tage in an ad­dress­able $30 bil­lion mar­ket," she added. "This re­flects a marked im­prove­ment in the qual­ity of our earn­ings led by bet­ter re­al­iza­tions from biosim­i­lars and im­muno­sup­pres­sants in emerg­ing mar­kets." Shares of Bio­con gained 0.94% and were trad­ing at Rs.487.30 at 10.48 am on BSE, the bench­mark Sen­sex rose 1.38% to 24,298.64 pointss. On Thurs­day, Bio­con an­nounced pos­i­tive data af­ter phase 1 stud­ies of In­sulin Tre­gopil, which it said will pro­vide the ba­sis for the next phase of clin­i­cal de­vel­op­ment.

In­sulin Tre­gopil is a first-in-class oral pran­dial in­sulin tablet for the treat­ment of type I and type II di­a­betes mel­li­tus.

In phase-1, a new drug is tested on a small group of healthy vol­un­teers to eval­u­ate its safety, de­ter­mine a safe dosage range, and iden­tify side-ef­fects. Bio­con said it will test the drug on a larger pa­tient co­hort to val­i­date the find­ings of phase-1, and pre­pare it­self for part­ner­ship or li­cens­ing op­por­tu­ni­ties to take the drug de­vel­op­ment for­ward.

"The data is ex­tremely promis­ing and based on what we know to­day Tre­gopil may be po­si­tioned as a unique oral In­sulin," "Con­fir­ma­tion of th­ese find­ings in the next phase of clin­i­cal stud­ies will set the stage for a paradigm shift in the treat­ment of di­a­betes," Mazum­dar-Shaw said.

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