Biocon Limited, an innovation-led global biopharmaceuticals company, announced its consolidated financial results for the fiscal second quarter ended September 30, 2024. The company has reported a net loss of Rs. 16 crore on account of higher tax based on geographical split of profits and minority interest in Q2 FY25 as compared to the net profit of Rs. 126 crore in Q2 FY24.

During the quarter, Biocon reported consolidated revenue of Rs. 3,623 crore and EBITDA of Rs. 728 crore. EBITDA margin stood at 20 percent.

Commenting on the result, Kiran Mazumdar-Shaw, Chairperson, Biocon Group, said: “Biocon Group’s overall Q2FY25 financial and operational performance provides a foundation for improved performance as we move into the second half of the fiscal. Reported Operating Revenues of Rs 3,590 crore reflect YoY growth of 8% on a like for like basis and core EBITDA and EBITDA margins of 28% and 20% respectively remain healthy. We had a robust performance in the Biosimilars business, up 19% on a like for like revenue basis, driven by strong market share gains in our US Oncology and Insulins franchises.

“Syngene has returned to sequential growth and has good visibility of a pickup in momentum in the coming quarters led by its Discovery Services and Biomanufacturing CMO business. Generics has continued to face price and demand pressures that have supressed performance, but key new formulation launches in Q3 and Q4 provide the basis of a turnaround before the year end. All three businesses are tracking towards a better performance in the second half of the year, on the back of product approvals and unfolding market opportunities.

“Biocon Biologics’ successful refinancing of its long-term debt of US$ 1.1 billion through a combination an $800 million USD bond listed on the Singapore Stock Exchange and a new $300 million syndicated loan facility was a credible success. This was Biocon Group’s debut bond issue and to be 3x oversubscribed speaks to strong investor confidence in our Biosimilars growth potential.”

Peter Bains, Group CEO, Biocon Limited, added: “With like for like Operating Revenue growth of 8%, Biocon Group’s consolidated performance in Q2FY25 was balanced and in line with our expectations. Healthy double-digit growth in Biosimilars more than offset a relatively muted performance in the Generics business and a marginal decline in Syngene’s revenues. Reported Net Loss for the quarter was Rs 16 crore on account of higher tax, based on geographical split of profits and minority interest. Adjusting for exceptional items, the loss stands at Rs 13 crore.

“We maintain our outlook for a transition to accelerating growth in the second half of the year with Syngene returning to growth, building momentum in our Biosimilars business and a recovery in Generics in the latter part of H2 driven by the launch of our first GLP-1 generic in the UK. The highly successful Biocon Biologics bond issue was a standout achievement and has significantly strengthened its mid-term financial foundation.”

Siddharth Mittal, CEO & Managing Director, Biocon Limited, said: “The Generics business continues to face pricing pressure and demand contraction. This quarter we also carried out a planned shut-down of one of our API facilities, which further impacted revenues. We received a few drug product approvals in the U.S., UK, EU and MoW markets, which will support our near-term sales. The licensing agreements signed with two leading pharmaceutical companies in the Middle East and Brazil, for the commercialization of our GLP-1 products will enable mid and long-term growth in these regions.

“As stated earlier, we expect a transition to growth in the second half of this fiscal on the back of new product launches, including Liraglutide in the UK, as well as other injectable products, such as Micafungin and Daptomycin.”

Shreehas Tambe, CEO & Managing Director, Biocon Biologics Limited, said: "The strategic refinancing of our long-term debt through a US$800 million USD bond issuance and a new syndicated loan facility was the highlight this quarter. This provides greater financial liquidity and allows us to re-deploy investments into the business to fuel growth. It is an important milestone for Biocon Group as well as the industry, as it is the first USD bond issuance by any biopharmaceutical company in Asia.

“The business delivered a robust 19% year-on-year growth on a like for like basis, underpinned by an increase in market shares in North America, expansion in Europe, and 15 new launches in Emerging Markets. On the regulatory front, EMA has validated our filing for bDenosumab. We also signed a settlement and license agreement for Yesintek, our bUstekinumab, with the originator that paves the way for launch in Europe, UK, Canada, and Japan.”