Biocon Q2FY23 Revenue at Rs. 2,384 Cr., Up 23 percent; Core EBITDA at Rs. 816 Cr., Up 34 percent Gross R&D Spend at Rs. 252 Crore, Up 52 percent

Biocon Ltd. (BSE code: 532523, NSE: BIOCON), an innovation-led global biopharmaceuticals company, today announced its consolidated financial results for the second quarter ended September 30, 2022.

Leadership Comments

Biocon Group

“We reported a strong consolidated revenue growth of 23% YoY for Q2FY23 at Rs. 2,384 Crore driven by 34% growth in Biosimilars, 26% in Research Services and 18% in the Generics business. Our Gross R&D spends increased by 52% YoY this quarter to Rs. 252 Crore reflecting our advancing pipeline that will drive our future growth. Core EBITDA was up by 34% at Rs. 816 Crore, representing healthy core operating margins of 35% versus 33% in the same quarter last year.

“We have delivered a resilient performance in H1FY23, with all segments delivering strong revenue growth. We expect to consolidate on this performance in the second half of FY23. Enhanced capacities and new launches will drive growth for our API and Generic Formulations business, while continued business momentum should help Syngene achieve its guidance for the full year.

“The consolidation of Viatris’ global biosimilars business and the strategic vaccines alliance with Serum Institute will add to the growth of the Biosimilars business in H2FY23. We have secured  necessary financing and obtained relevant approvals for the Viatris transaction, which is expected to close shortly. – Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics.

Biocon Generics

“I am pleased with the sequential as well as YoY growth of the Generics business in Q2, on the back of the stabilization of our API business, with immunosuppressants being a significant contributor. Our statins portfolio continued to encounter pricing pressures.

“Our Generic Formulations business delivered a healthy performance in the quarter, with both base business as well as new product launches gaining traction.  The business also secured several  key approvals for our vertically integrated products in the EU and the rest of the world (RoW) markets, providing further impetus to our geographical expansion plans in the quarters ahead. – Siddharth Mittal, CEO & Managing Director, Biocon.

Biocon Biologics

“Biocon Biologics maintained a healthy operating performance in Q2FY23 with revenues increasing 34% YoY to Rs. 997 Crore, driven by higher sales of our biosimilar insulins and antibodies in advanced and emerging markets. We have seen an uptick in new prescription share for Semglee and volume market share for Fulphila in the U.S. Core EBITDA at Rs. 449 Crore was up 48% YoY, representing strong margins of 46%. R&D investments at Rs. 184 Crore, an increase of 142% YoY, reflects the good progress of our pipeline laying the foundation for future growth of our business.

“In preparation for a direct commercial presence in the advanced markets, we have made key leadership appointments this quarter. We believe the conclusion of the strategic transactions with Viatris and Serum Institute, expected to be closed in Q3FY22, will position Biocon Biologics as a fully integrated, leading global biosimilars player.” – Dr. Arun Chandavarkar, Managing Director, Biocon Biologics.

Syngene

“Our performance in the first half of the year was good. We started the year with strong momentum and delivered a robust first quarter. Performance in the second quarter was ahead of market expectations. All our divisions performed well and revenue from operations grew by 26%. We continue to see good demand for our services, which has helped us deliver strong revenue growth and puts us on a solid track for the rest of the year.” – Jonathan Hunt, CEO & Managing Director, Syngene.

Corporate Updates

Tribute to John Shaw, Former Vice Chairman of Biocon

John Shaw, former Vice Chairman of Biocon and husband of our Chairperson, Kiran Mazumdar-Shaw, passed away on October 24, 2022, in Bengaluru. As a key member of the Board and the management team of Biocon since 1999, John Shaw has contributed majorly to the transformation of Biocon into a globally recognized, innovation-led biopharmaceutical company. In his 22 years with Biocon, he played a very important role in building the Company, ensuring the highest levels of corporate governance, as well as contributing to the financial and strategic development of the Biocon Group. He retired from the Board of Directors of Biocon on July 23, 2021, due to health reasons.

John Shaw was a man who stood tall with his values and inspired many. He was a very benevolent, erudite and a compassionate person who truly believed in philanthropy to make this world a better place. John Shaw’s vision for Biocon will continue to guide us towards our purpose of enabling equitable access to healthcare worldwide.

Board Appointment 

Biocon has appointed Peter Bains as Additional Director (Category – Independent) to its Board, subject to the completion of necessary formalities under the Companies Act.

He has over three decades of experience in biopharmaceuticals, with a successful track record of building brands, businesses, teams and companies. Peter currently serves as a Non-Executive Director on the Board of Indivior PLC, a UK FTSE-listed pharmaceuticals company, as well as MiNA Therapeutics and Apterna, both privately held UK biotech companies.

Biocon Improves its 2022 ESG Score 

Biocon (including Biocon Biologics) improved its ESG score to 52 from 45 in the previous year in the recently released S&P Global Corporate Sustainability Assessment report. This was accomplished on the back of key initiatives undertaken during the past year, leading to improvement in our Environmental, Social and Governance (ESG) practices, details of which were published in Biocon’s Sustainability Report 2022, which is available on www.biocon.com

ESG is at the core of our business purpose and responsibility. By serving patients, protecting the environment and promoting business integrity, we are reinforcing our commitment to building an equitable and viable future.