Biocon, based in Bengaluru, reported a significant decline in its net profit for the second quarter of fiscal year 2025 (Q2 FY25), dropping 84.3% to Rs 27.1 crore compared to Rs 172.7 crore in the same quarter last year. The company’s profit before tax also fell by 54.08%, down to Rs 98.4 crore from Rs 214.3 crore.
Total revenue for the quarter was Rs 3,623 crore, showing a slight increase from Rs 3,620.2 crore in Q2 FY24. Biocon’s earnings before interest and taxes (EBIT) stood at Rs 718 crore, yielding a margin of 20%. The biosimilars segment experienced growth, with revenue rising to Rs 2,182 crore from Rs 1,969 crore, attributed to strong performances in the US oncology and insulin sectors.
Chairperson Kiran Mazumdar-Shaw highlighted the successful refinancing of Biocon Biologics’ long-term debt of Rs 9,249.9 crore ($1.1 billion) through a bond issue and a syndicated loan, noting that the bond was oversubscribed three times, reflecting strong investor confidence in the company’s biosimilars growth potential.
CEO Peter Bains mentioned that the 8% growth in operating revenue was driven by strong biosimilars performance, which helped mitigate the impact of weaker results in the generics sector and a slight decline in Syngene’s revenue. The quarter reported a net loss of Rs 16 crore due to higher taxes, although excluding exceptional items, the loss was Rs 13 crore.
Biocon indicated that the generics business continues to struggle with pricing pressures and reduced demand, exacerbated by a planned shutdown of an API facility during the quarter. However, the company received several drug product approvals in key markets, which should boost near-term sales. Licensing agreements in the Middle East and Brazil for GLP-1 products are expected to drive mid- to long-term growth.
Siddharth Mittal, CEO and Managing Director, noted that a transition to growth is expected in the latter half of the fiscal year, driven by new product launches, including Liraglutide in the UK and other injectables.
Syngene’s performance in the quarter was stable, with an operating EBITDA margin of 27%. CEO Jonathan Hunt reported early positive signs of recovery in Discovery Services, largely due to collaborations with biopharma clients seeking alternatives to China. Investments in research and CDMO businesses position the company for future growth.
During the quarter, Biocon received approvals from the U.S. FDA for various products, including Sacubitril + Valsartan and Daptomycin, along with approvals for Micafungin in the UK/EU and Posaconazole in the UAE. The company also secured a new tender for Everolimus tablets.
Biocon reported that two U.S. FDA inspections of its API facilities in Bengaluru yielded some observations, while inspections at its Visakhapatnam sites resulted in Establishment Inspection Reports (EIRs).
Mazumdar-Shaw emphasized that the overall performance in Q2 FY25 sets a foundation for improved results in the latter half of the fiscal year, with operating revenues reflecting 8% year-on-year growth. She stated that all three business segments are expected to improve as product approvals and market opportunities develop.
Bains reiterated the outlook for accelerating growth in the second half of the year, with Syngene returning to growth and the biosimilars business building momentum, alongside a recovery in generics driven by upcoming product launches.
