Biocon’s revenues for the quarter were up by 23% from last year, thanks to the success the company has had with biosimilars, of which revenues increased by 29%, and generic drugs, which had an increased revenue of 19%.
In its earnings report for the first quarter of fiscal year 2023 (Q1FY23), Biocon said that its overall revenues increased by 23% from the same quarter the previous year, in large part thanks to the success of its biosimilars and generics subsidiary companies.
The revenues for the parent company improved by Rs 2217 Crore ($278 million) year over year. Biocon’s net profit went up Rs 144 Crore ($18 million), about 71% year over year. The revenue breakdown revealed that generics made up 26% of the revenue, research services accounted for 29%, and biosimilar accounted for 45%.
“We have had a strong start to the year…. All our three businesses are poised for the next phase of strong and sustainable growth which has been challenged during the two years of the COVID-19 pandemic,” said Kiran Mazumdar-Shaw, executive chairperson of Biocon and Biocon Biologics, Biocon’s biosimilars subsidiary, in a company statement.
The revenues for Biocon Biologics increased by Rs 645 Crore ($81 million) year over year. Additionally, the revenues for Biocon Generics rose by Rs 977 Crore ($122 million), a 29% year-over-year jump.
“Initiation of global clinical trials for two monoclonal antibodies and advancement of our other pipeline assets led to a 120% increase in our [research and development] investments this quarter. Whilst this impacts [the earnings before interest, taxes, depreciation, and amortization] in the near term, such investments will create a strong portfolio to secure our future growth,” said Arun Chandawarkar, PhD, managing director of Biocon Biologics.
Biocon’s research services revenue came from Syngene, Biocon’s integrated contract research, development, and manufacturing organization (CRDMO) service, which experienced an 8% increase in revenue.
“The first quarter results were in line with our expectations and reflect strong underlying performance of Syngene across all business divisions,” said Jonathan Hunt, CEO and managing director of Syngene.
In Biocon’s statement on its quarterly earnings, representatives from Biocon Biologics said that they expanded the subsidiary’s “product reach to impact 5.51 million patients at the end of the quarter,” which ended June 30, 2022.
Biosimilar updates from Q1FY23 included the Canadian launch of Abevmy, Biocon Biologics’ bevacizumab biosimilar, and the UK approval of an insulin aspart biosimilar. Biocon Biologic’s growth can be attributed to the US sales of its interchangeable insulin glargine biosimilar (Semglee) and the increased market share obtained by its pegfilgrastim biosimilar and trastuzumab biosimilar in the Euroepan Union.
Its trastuzumab biosimilar and recombinant human insulin biosimilar were launched in countries in the Asian-Pacific region and the Latin American region. Applications for biosimilars to be approved were submitted in more than 20 markets during the quarter.
Developments of an ustekinumab biosimilar and a denosumab biosimilar are on track and Biocon said that they are expected to be “key additional drivers for our medium to long-term growth, on top of our current portfolio partnered with Viatris.”
In March 2022, Biocon Biologics announced that it would acquire Viatris’ entire biosimilars portfolio. The launch of Abevmy in Canada was also conducted through Biocon Biologics’ partnership with Viatris.