Biocon delivers 16% growth led by Research Services & Branded

Bangalore, Karnataka, India 
Commenting on the quarterly performance and highlights, Chairman and Managing
Director, Kiran Mazumdar-Shaw stated, “Q3 FY14 has been a very eventful
quarter for us, with several research milestones across our novel molecules and
biosimilars portfolio. The key highlight was the DCGI approval for our
biosimilar Trastuzumab, which paved the way for its commercial launch in India
as CANMAb™.  CANMAb™ is not only the world's first biosimilar Trastuzumab,
but is also the most affordable worldwide. We have also strengthened our R&D
pipeline with 2 new alliances giving us access to novel technology platforms.  
The performance of the Biopharmaceuticals segment has been steady as we continue
our efforts to optimise the product basket. We have witnessed sustained business
momentum in Research Services, and a return to growth for our Branded
Formulations vertical. Our investment efforts in Malaysia continue and we are on
track to commission our insulin facility in FY15. We expect to close this
financial year with a strong performance across business verticals.” 
Revenue growth in 9M FY14 reflects the strength of our differentiated portfolios
Biopharmaceuticals segment: 14% YoY
Research Services segment: 35% YoY
9MFY14 Group EBITDA and PAT margins at 25% and 14% respectively
R&D investments for 9MFY14: Rs 102 Crores (6% of Biopharmaceutical segment
Announced the launch of CANMAb™, world's first biosimilar Trastuzumab, in
Strategic partnerships with:
Quark Pharmaceuticals to develop siRNA based novel therapeutics
Advaxis Inc. for a novel cancer immunotherapy
Ranked at No 6. in the ‘Global Top 20 Employers' list for Bio pharma sector by
the Science Magazine, 2013
Quarterly Business Performance
Financial Highlights: Q3 FY14 (In Rs Crores)
Revenue : 719
R&D Expenses: 20      (4% of Biopharmaceutical segment sales)
EBITDA: 187                      (EBITDA Margin: 26%)
PAT:  105                                   (PAT Margin: 15%)Revenue Breakup:
Biopharmaceuticals: 517
Research Services: 183
Other Income: 19 
The Biopharmaceuticals segment delivered a growth of 9% YoY at Constant Exchange
Rate (CER) during 9M FY14. For Q3 FY14, at CER, the segment performance declined
2% YoY. 
Small Molecules
As indicated earlier, the small molecules portfolio is currently being optimized
to balance margin accretion with growth platforms. We have seen good momentum in
Immunosuppressants and Orlistat, while the changing product mix for statins have
helped balance out the headwinds in the industry. 
Our biosimilar Insulins portfolio continues to deliver strong growth. Our
generic rh-Insulin is now approved in over 50 countries. Along with our partner
Mylan, we continue with the groundwork to initiate a global Phase III trial for
our generic Insulin Glargine. 
We have announced the launch of CANMAb™, our biosimilar Trastuzumab in India.
Our product is the first biosimilar Trastuzumab to be commercialized anywhere in
the world; and comes with robust data from a 2 year long Phase III biosimilarity
trial conducted in India on over 130 patients. Keeping the emerging market needs
in perspective, we have launched the drug in two strengths (150 mg and 440 mg).
The 150 mg presentation will help eliminate drug wastage and enable additional
savings for patients, when used in conjunction with the standard 440 mg vial.
CANMAb™ will be sold in India through Biocon's Oncotherapeutics division under
the Branded Formulations vertical and will be available to patients in early
February 2014. 
Branded Formulations 
The Branded Formulations vertical grew at 15% YoY in Q3 FY14, vis-à-vis the
industry growth of 5% YoY, closing the period with 99 Crs in sales. The impasse
between the trade and the pharma companies has largely been resolved, and we
have seen growth return to the market driven by chronic therapies. 
The growth for this quarter has been led by our flagship brands of Basalog®
Insupen®, BioMab EGFR® and Abraxane®. In addition, we have seen very
enthusiastic uptake of Cytosorb®, a novel therapy in sepsis management that we
had launched last quarter. 
We have signed a licensing and co-development agreement with Advaxis Inc. for
ADXS-HPV, a novel cancer immunotherapy to treat Human Papilloma Virus
(HPV)-associated cervical cancer in India and key emerging markets. 
Novel Molecules 
We commenced global trials for our oral insulin (IN 105) program in the US. Our
partnership with BMS on this asset continues, in line with their decision to
retain this asset. 
We entered into a strategic collaboration with Quark Pharmaceuticals this
quarter, to develop a range of siRNA based novel therapeutics. This
co-development alliance will leverage Quark's proprietary technology platform to
target various unmet medical needs. The lead candidate in this program is
QPI-1007, a novel siRNA drug candidate for ophthalmic conditions. 
Research Services 
The Research Services segment grew 22% YoY and 15% YoY at Constant Exchange Rate
(CER) for 9M FY14 and Q3 FY14 respectively, with widespread growth across our
service platforms. 
Commenting on this performance, Peter Bains, Director Syngene International,
said, “We are pleased with the strong growth delivered by Research Services
through 9MFY14. This reflects sustained business momentum and an increasing
penetration of our integrated service offerings. As pharma and biopharma
continue to evolve their R&D models, we see a sustained emphasis on
collaborative externalization. In addition, there is increasing interest from
allied sectors such as nutrition, consumer & animal health and agrichemicals to
create partnerships between our research and development capabilities and their
product pipelines. I am also pleased to report that Syngene has successfully
cleared its first USFDA audit of its quality systems, with no observations or
483s.  The audit was triggered by an application from one of our existing
clients, and gives further credence to the world class quality systems,
underpinning our service platforms.” 
The outlook for FY14 remains positive while we strive to balance our revenue
growth and R&D spend. Our portfolio and cost optimization initiatives continue,
helping us manage our margins more effectively. We continue to invest in our R&D
pipeline, and the several milestones achieved over the course of this year are
indicative of the growth opportunities ahead of us. Our Malaysia facility is on
track for commissioning in FY15.
About Biocon 
Established in 1978, Biocon Limited, (BSE code: 532523, NSE Id: BIOCON, ISIN Id:
INE376G01013) is India's largest and Asia's leading biotechnology company with a
strategic focus on biopharmaceuticals and research services. It is a fully
integrated, innovation-driven biopharma enterprise offering affordable solutions
for chronic diseases to patient's worldwide. Biocon's robust product portfolio
includes the world's first Pichia-based recombinant human Insulin (INSUGEN®),
Glargine (BASALOG®), as well as MAbs like BioMAb-EGFR® for head & neck cancer
and Alzumab™ for Psoriasis. It has now successfully developed the world's
first biosimilar Trastuzumab, being introduced as CANMAb™ for HER2 positive
breast cancer in India, in 2014.  
Certain statements in this release concerning our future growth prospects are
forward-looking statements, which are subject to a number of risks,
uncertainties and assumptions that could cause actual results to differ
materially from those contemplated in such forward-looking statements. Important
factors that could cause actual results to differ materially from our
expectations include, amongst others general economic and business conditions in
India, our ability to successfully implement our strategy, our research and
development efforts, our growth and expansion plans and technological changes,
changes in the value of the Rupee and other currency changes, changes in the
Indian and international interest rates, change in laws and regulations that
apply to the Indian and global biotechnology and pharmaceuticals industries,
increasing competition in and the conditions of the Indian biotechnology and
pharmaceuticals industries, changes in political conditions in India and changes
in the foreign exchange control regulations in India. Neither our company, our
directors, nor any of our affiliates, have any obligation to update or otherwise
revise any statements reflecting circumstances arising after this date or to
reflect the occurrence of underlying events, even if the underlying assumptions
do not come to fruition. 
Encl.: Fact Sheet - Consolidated Income Statement and Balance Sheet (Indian
Media Contact Details
Saurabh Paliwal ,  Biocon, Investor Relations ,  +919538380801 ,
Sweta Pachlangiya ,  Biocon, Investor Relations ,  +919686509372 ,
Seema Ahuja ,  Biocon, Media Relations ,  +919972317792 ,
Rumman Ahmed ,  Biocon, Media Relations ,  +919845104173 , 
Contributed via: Bloomberg Publisher WEB Service 
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-0- Jan/23/2014 04:50 GMT
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