BIOCON net up at Rs.200 cr

The Hindu | 20th Apr 2007

BANGALORE: A 63 per cent growth in revenues from research services and licensing (amounting to Rs. 163 crore) boosted the total earnings of Biocon and its subsidiaries to Rs. 900 crore in 2006-07, a 25 per cent jump from the last fiscal. Income from biopharmaceuticals and enzymes business grew 20 per cent to Rs. 688 crore, contributing 83 per cent to operating revenues.

The Chairman and Managing Director, Kiran Mazumdar-Shaw, told reporters here on Thursday in a teleconference from the U.K. that, "The major investments we made over the past few years in research are beginning to pay off. We will continue to increase shareholder value." The company's work was evenly divided between research, drug discovery and sale of formulations, she said.

Arun Chandavarkar, Chief Operating Officer, said the profit after tax increased by 15 per cent to Rs. 200 crore. The operating margin stood at 29 per cent for the year

"The board of directors has recommended a 60 per cent dividend for 2006-07, against 50 per cent in the previous year. We increased our R&D expenditure by 86 per cent to Rs. 38 crore and the results will be seen over the coming years as our formulations now approved by U.S. FDA find a global market," he said.

The topline growth was 30 per cent at Rs. 279 crore in the fourth quarter ended March 31, 2007.

The joint research facility with Bristol-Myers Squibb, launch of a nephrology division, approval from the Drugs Controller General of India for clinical evaluation of intranasal insulin and launch of the anti cancer drug BIOMaB-EFGR were the highlights of last fiscal's developments. Biocon and Abu Dhabi's NMC Group have signed a memorandum of understanding to establish a joint venture to market a range of biopharmaceuticals in the Gulf Cooperation Council region.

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