Bangalore, April 25, 2014 – Commenting on the quarterly performance and highlights, Chairman and Managing Director, Kiran Mazumdar-Shaw stated, “Biocon ended fiscal 2014 on a strong note. We delivered 16% revenue growth along with a healthy EBITDA Margin of 25%. This fiscal we recorded robust performance, an outcome of our efforts aimed at optimising our product mix, augmenting capacities and driving operational efficiencies.
We have delivered on our promise of affordable innovation through commercialization of Alzumab™, an anti-CD6 novel biologic for Psoriasis; and CANMAb™, the world’s most affordable trastuzumab. We are pleased that a large number of patients benefitted from these two products. We continue with our innovation led business strategy and look forward to deliver superior value to our stakeholders.”
Highlights:
- Diversified Revenue growth in FY14
- Biopharmaceuticals Segment: 14% YoY
- Research Services Segment: 28% YoY
- Group EBITDA and PAT margins at 25% and 14% respectively
- R&D investments of Rs131 Crores (6% of Biopharma Segment sales)
- Commercial Launch of the world’s most affordable trastuzumab, CANMAb®
- Inauguration of Baxter’s Global Research Centre at Syngene
- Elevation of Dr. Arun Chandavarkar to Chief Executive Officer and Joint Managing Director
- Appointment of Mr. Ravi Limaye, as President – Marketing, Biocon
Business Performance
Financial Highlights: Q4 FY14 (In Rs. Crores)
| Revenue : 746 R&D Expenses: 29 EBITDA: 193 ( EBITDA Margin: 26%) PAT: 113 (PAT Margin: 15%) |
Revenue Breakup:
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Biopharma
The biopharma segment delivered a growth of 14% YoY and 15% YoY for FY14 and Q4 FY14 respectively.
Commenting on this performance, Ravi Limaye, President – Marketing, Biocon, said “ The healthy growth of 14% this fiscal from our biopharma segment reflects our ability to manage the rapidly changing business environment. We continue our efforts to rebalance our product portfolio in the biopharma segment to ensure higher margin accretion despite the underlying current of commoditization in some of our key product portfolios. The strong traction in biosimilars, supported by capacity augmentation should hold us in good stead till our Malaysian facility comes online. The return to growth of our branded formulations segment is a positive sign, and we expect this vertical to deliver strong growth going forward .”
Small Molecules
Our sustained focus on optimizing our product portfolio in Small Molecules has helped us deliver a healthy set of numbers this fiscal. The recent portfolio realignment helped us offset the impact of continuous commoditization in the statins space. We have witnessed good business traction in Immunosuppressants and specialty products and expect it to sustain in FY15.
We have made investments this fiscal to progress from APIs to generic formulations and ANDAs, thereby moving up the pharma value chain. These investments will help us sustain our growth momentum in the coming years by ensuring a healthier product mix. We expect to initiate our dossier filings from this portfolio in FY15, which will bear dividends over the next few years.
Biosimilars
Our generic Insulins portfolio has delivered strong growth this fiscal through our expanding geographical footprint and increasing market penetration. Our generic rh-Insulin is now approved in over 55 countries. This growth has been supported by our enhanced capacities over the course of fiscal 2014. Our Malaysia project is on track to be commissioned in FY15. We continue to make progress on our various developmental programs, and hope to bring some of them to the clinic in FY15.
Branded Formulations
The branded formulations vertical grew at 9% YoY this quarter, vis-à-vis the industry growth of 7% YoY, delivering revenues of Rs. 93 Crs in Q4 FY14. We closed FY14 with sales of Rs. 391 Crs and a growth of 13% vs. the overall industry growth of 6%, driven by our flagship brands of BioMAb EGFR®, Abraxane™, Insugen® and Basalog®. We launched our trastuzumab product, CANMAb® in India in Q4 FY14.
Novel Molecules
We continue with the clinical development of our novel oral insulin molecule, IN 105, in USA, in partnership with BMS.
We have initiated the groundwork to explore expanded indications for our novel Anti CD6 molecule, Itolizumab. We are in discussions with potential partners for the out-licensing of this molecule.
Research Services
The research services segment grew at 28% YoY in FY14 and 14% in Q4 FY14. The quarter also saw the inauguration of the Baxter Global Research Centre, another multi-year dedicated services engagement with a global pharma company.
Commenting on this performance, Peter Bains, Director Syngene International, said, “We are pleased to report a strong set of numbers for FY14 with 28% YoY revenue growth which has also translated into a strong EBITDA growth. It is encouraging to see strong, broad based business momentum across our chemistry, biology, biologics and clinical service platforms. Our latest long term, dedicated research Centre for Baxter reflects the strong value that we bring to biopharma through wide ranging quality services and flexible business models. Our order book and outlook for the coming year remains robust, and, in line with our midterm outlook, we continue to invest in strengthening and enhancing our discovery and development service platforms.” BWI
