During the quarter that ended in December Biocon had a 17% decline in net profits which leads to a big beating from the street sentiments. When Biocon started commercialization of its biosimilar range in the developed markets the expectation of the investors has risen. Many products have been launched in the regulated market by Biocon and its partner Mylan N.V in the US and Europe, and it is confirmed that there are more to get approval for the launch. During the quarter gone by there was 11% growth according to the biologics segment’s report. But there was a decline of 3% year-on-year in generic sales limiting revenue growth.
According to analysts, the research services segment clocked a 13% growth and the revenues from operations grew just 8% y-o-y. Since active pharmaceutical ingredients, there was an impact on the generic sales, as customers were stockpiled orders slowed down. There was a 17% drop in net profit due to a decline in 11% year-on-year, other incomes also played spoilsport and registered a decline. The result was very bad compared to the expectations of having a 14.7% growth in revenues and 16% increase in net profits according to the analysts at Motilal Oswal Financial Services had though the company to post. The biosimilar range of the company is progressing well. The tapping of the developing market is started for its biosimilars. Biocon got the approval for launches of biosimilar Trastuzumab and Insulin Glargine in two countries. According to the analysts in the US the drug had a market size of $6 billion and post-launch of Biocon could have $200-300 million per annum.
The street will observe the growth of the inspection of the company’s facilities in getting the approval of the launch of the drug. Out of 300 more than 100 patients have been enrolled in Phase 4 clinical studies for Itolizumab in treating cytokine release syndrome. For the Biologics business by FY22 the company started a plan to achieve $1billion in revenue. The company now expects to achieve the milestone at a later date with a challenging FY21. FY22/23 biologics revenues are at $547million and $632 million according to an analyst from Jefferies and by 7% the same has been adjusted downwards.