Biocon Reports Net Loss Of Rs 42 Cr, Sales Up By 36% YoY In Q3FY23

Bangalore-based pharmaceutical company Biocon on Tuesday announced its consolidated financial results for the third quarter that ended 31st December 2022, the company registered a 36 per cent rise in its revenues from operations year on year. The company's revenue for the third quarter stood at Rs 3,020 crores against Rs 2,223 crores in the same quarter last year. Whereas the company posted a net loss of Rs 42 crores in quarter three of the financial year 2023(Q3FY23) against a net profit of 187 crores in the same quarter last year on account of an exceptional item of Rs 271 crores, primarily pertaining to deal related expenses of the Viatris transaction.

The pharma major's EBITDA surged by 35 per cent year on year to be recorded at Rs 723 crores for the December quarter versus Rs 537 reported in Q3FY22, whereas the EBITDA margin for Q3FY24 came at 24 per cent which remained unchanged compared with the corresponding quarter of the previous year.

The company's research & development (R&D) investments for the quarter stood at Rs. 337 crores up by 144 per cent year on year and amounting to 8.9 per cent of the company's revenues. 

“Q3 FY23 has been an eventful quarter which saw the completion of the global acquisition of our partnered Biosimilars business from Viatris on Nov 29, 2022. We are now implementing country-wise integration of the business to maximize the value of the combined entity to propel growth. Biosimilars as a business segment offer differentiated growth to Biocon Biologics based on vertical integration and a unique portfolio of Insulins and antibody-based immunotherapeutics," stated Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics.

She further said that this quarter captures a fraction of the acquired business, but from Q4FY23 onwards, the financials will recognise the entire Biosimilars business. 

The company's generics grew by 18 per cent year on year to Rs 718 crores, while its biosimilar business stood at Rs 1,507 crores in the December quarter, up by 54 per cent year on year. Biocon's research services business also grew by 23 per cent year on year to Rs 786 crores.

“We expect to end FY23 on a strong note with healthy growth across businesses. Biocon Biologics is tracking towards exiting the year at a USD 1 billion trajectory, excluding vaccines,” Shaw said.