Biocon's net profit nosedives 28%; reaches Rs 149 crore in Q1

Biocon reported a 28% drop in net profit to Rs 149 crore during the quarter to June on the back of higher research and development (R&D) spend coupled with lower profit share in the biosimilars business.

The Bengaluru-headquartered biopharma company's revenue was up 14% at Rs 1,690 crore during the quarter. Biocon said it plans to carry out a phase IV trial in 200 Covid-19 patients to know the therapeutic efficacy of Itolizumab across the country in 10-15 hospitals.

Biocon said it plans to carry out a phase IV trial in 200 Covid-19 patients to know the therapeutic efficacy of Itolizumab across the country in 10-15 hospitals. "The Research Services business reported flat revenue growth at Rs 422 crore due to slowdown of operations impacted by the Covid-19 crisis. EBITDA (operating margin) for the quarter stood at Rs 432 crore...Net Profit (from continuing operations) was at Rs 153 crore. Profitability for the quarter was impacted due to higher R&D spend,lower profit share in the Biosimilars business, and lower profitability in the Research Services segment," said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

She added that it has a breakthrough quarter for Biocon as it made a significant contribution to the global efforts aimed at addressing the pandemic through our innovative science. "Earlier this month, the Drugs Controller General of India(DCGI) granted 'restricted emergency use approval' for Itolizumab, our novel anti-CD6 biologic therapy for the treatment of cytokine release syndrome (CRS) in COVID-19 patients with moderate to severe acute respiratory distress syndrome (ARDS). The 'proof of concept 'pivotal study data is encouraging and highlights the urgent importance of further evaluating the potential therapeutic efficacy of Itolizumab in a larger number of COVID-19 patients," said Mazumdar-Shaw.

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