Image Credits - biocon
Biocon Ltd, a biopharmaceutical company, reported a substantial rise in its first-quarter profit, primarily due to a one-time gain from the sale of its Indian branded formulations business to Eris Lifesciences. The deal, worth 12.42 billion rupees, became effective on April 1, 2024. This transaction contributed a gain of 10.57 billion rupees to Biocon’s profits after accounting for working capital and expenses related to the commercial collaboration.
For the quarter ending June 30, Biocon reported a net profit attributable to shareholders of 6.6 billion rupees ($78.62 million), a notable rise compared to the 1.01 billion rupees reported in the same period last year. The company’s increased quarterly profit was also supported by the growing market share of its biosimilars, which include treatments for cancer, diabetes, and immunology-related conditions.
Biocon has invested more than $1 billion in its biosimilar unit and has acquired businesses globally to strengthen its position in a market expected to triple in value to $74 billion by the end of the decade. Revenue from Biocon’s biosimilars segment saw a 3.4% increase, reaching 20.83 billion rupees compared to the previous year.
However, the company faced challenges in its generics segment, where revenue fell 5.9% to 6.6 billion rupees due to pricing pressures in the U.S. market. Despite the positive profit report, Biocon’s shares closed 2.2% lower on Thursday, just before the results were announced.
The significant profit increase and strategic sale of the branded formulations business underscore Biocon’s efforts to focus on high-growth areas like biosimilars, despite the challenges in the generics market.