Biocon reported a 10% decline in net profit for Q2FY23 to Rs 168 crore on account of tax adjustments. The company’s overall revenue from operations grew by 26% during the quarter to Rs 2,320 crore led by 34 per cent year on year growth in the biosimilars business.

Commenting on the result, Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics, said: “We reported a strong consolidated revenue growth of 23% YoY for Q2FY23 at Rs 2,384 Crore driven by 34% growth in Biosimilars, 26% in Research Services and 18% in the Generics business. Our Gross R&D spends increased by 52% YoY this quarter to Rs 252 Crore reflecting our advancing pipeline that will drive our future growth. Core EBITDA was up by 34% at Rs 816 Crore, representing healthy core operating margins of 35% versus 33% in the same quarter last year.

“We have delivered a resilient performance in H1FY23, with all segments delivering strong revenue growth. We expect to consolidate on this performance in the second half of FY23. Enhanced capacities and new launches will drive growth for our API and Generic Formulations business, while continued business momentum should help Syngene achieve its guidance for the full year.

“The consolidation of Viatris’ global biosimilars business and the strategic vaccines alliance with Serum Institute will add to the growth of the Biosimilars business in H2FY23. We have secured necessary financing and obtained relevant approvals for the Viatris transaction, which is expected to close shortly.”

In the APIs and Generic Formulations business, Q2FY23 revenue at Rs 623 crore, up 18% (YoY) from Rs 530 Crore in Q2FY22. During the quarter the company launched two important products Sitagliptin and Vildagliptin in the EU, enabled by the brownfield capacity expansions undertaken at our Bengaluru and Visakhapatnam facilities. The Company also received five product approvals across markets.

In the Biosimilars business, Q2FY23 revenue stood at Rs 997 Crore, up 34% (YoY) from Rs 743 Crore in Q2FY22. Biocon Biologics’ YoY revenue growth was led by a strong performance of its biosimilar portfolio in advanced and emerging markets.

“I am pleased with the sequential as well as YoY growth of the Generics business in Q2, on the back of the stabilization of our API business, with immunosuppressants being a significant contributor. Our statins portfolio continued to encounter pricing pressures. Our Generic Formulations business delivered a healthy performance in the quarter, with both base business, as well as new product launches, gaining traction. The business also secured several key approvals for our vertically integrated products in the EU and the rest of the world (RoW) markets, providing further impetus to our geographical expansion plans in the quarters ahead,” Siddharth Mittal, CEO & Managing Director, Biocon, said in a release.