Pandemic hits Biocon: 18% drop in net profit, MD Christiane Hamacher resigns & shares drop 9.11%
Biopharmaceutical company Biocon reported a near 18% decline in net profit to Rs 169 crore on 8% rise in revenue from operations to Rs 1,851 crore in Q3 FY21 over Q3 FY20. The core operating margin stood at 31%, the company said.
Shares of Biocon saw a massive drop of 9.11%. It is currently trading on NSE at Rs 401.70. Biocon opened at Rs 422.40 and the previous close is reported to be Rs 441.95.
“2020 has been one of the most challenging years for the world with an unprecedented pandemic impact on the global economy. We continue to face headwinds across operational, regulatory and commercial functions which have been deterrents to our planned market expansion. However, we expect normalization by next fiscal,” said Kiran Mazumdar-Shaw, executive chairperson, Biocon.
Recent investments by Goldman Sachs and ADQ would bore well for the company’s planned expansion amounting to $225 million. The investment would enable in expanding our research and manufacturing capacities across segments, she added.
Muzumdar also said that the recent launch of Tacrolimus capsules in the US, as well as approvals in Most of the World (MoW) markets for Insulin Aspart, Bevacizumab and Trastuzumab biosimilars, will also
pave the way for expanding our business in future.
Christiane Hamacher has stepped down as the managing director of Biocon Biologics, the biosimilar subsidiary of Biocon, and also ceased to be a member of the board of Biocon Biologics Limited, effective January 20, said the company. Arun Chandavarkar, the member of the board of Biocon Biologics, has taken over as the managing director effective January 21 for a period of up to two years.