Pharma major Biocon Ltd. reported a substantial decline in its consolidated net profit for the fourth quarter of FY24, with earnings falling 56% to Rs 135.5 crore compared to Rs 313.2 crore in the same period last year. Despite the profit drop, the company experienced a modest 3% increase in revenue from operations, which rose to Rs 3,917 crore from Rs 3,774 crore year-on-year.
Consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) also decreased, dropping 8% YoY to Rs 916 crore. Consequently, the consolidated EBITDA margin contracted to 23.4%, down from 26.4% in the corresponding quarter of the previous fiscal year.
This decline in profitability follows Biocon Biologics’ significant acquisition of Viatris Inc.’s biosimilars business, finalized on November 29, 2022. The $3.335 billion deal included $2.335 billion in cash and $1 billion in Compulsorily Convertible Preference Shares of Biocon Biologics. The acquisition has been consolidated into Biocon’s results from the consummation date, contributing to the recorded goodwill of Rs 160,940 million.
Siddharth Mittal, CEO and Managing Director of Biocon, commented on the results: “While we faced challenges this quarter that impacted our profitability, the strategic acquisition of Viatris’ biosimilars business positions us for long-term growth and integration into a fully-fledged global biosimilars enterprise. This investment aligns with our commitment to expand our biosimilars portfolio and enhance our global market presence.”
Founded in 1978, Biocon is one of India’s leading biopharma companies, offering comprehensive solutions from discovery and development to commercialization. The company’s diversified revenue streams span biosimilars (including branded formulations), contract research, and the production of small molecules and active pharmaceutical ingredients (APIs).
Looking ahead, Biocon aims to leverage its recent acquisition to bolster its biosimilars business and drive growth across its diversified portfolio. Despite the current profit decline, the company remains optimistic about its long-term strategic direction and market opportunities.
