Buy / Sell Biocon share
Biocon shares gave up initial gains in choppy trade on Friday, a day after the drugmaker reported its financial results for the January-March period. The company's quarterly margin missed Street expectations.
The Biocon stock declined by as much as Rs 6.5 or 1.7 percent to Rs 370 apiece on BSE, in a U-turn after rising to as high as Rs 381.6 apiece earlier in the day.
After the market hours on Thursday, the company reported a 4.2 percent year-on-year decline in quarterly net profit to Rs 283.9 crore, even as its revenue increased 30.8 percent to Rs 2408.8 crore.
Analysts in a CNBC-TV18 poll had estimated the company's net profit at Rs 247 crore and revenue at Rs 2,329 crore.
Revenue of the company’s biosimilar business -- Biocon Biologics -- increased 48 percent to Rs 982 crore for the three-month period.
"We reported strong consolidated revenue growth of 21 percent for the fourth quarter of the financial year 2021-22 at Rs 2,476 crore driven by 48 percent growth in biosimilars, 26 percent in generics and 15 percent in research services and businesses,” said Kiran Mazumdar-Shaw, Executive Chairperson of Biocon and Biocon Biologics,
“Our gross R&D spends increased by 70 percent this quarter to Rs 232 crore reflecting our advancing pipeline, which will drive our future growth,” she added.
Biocon MD and CEO Siddharth Mittal said the performance of the company's generics business was muted in the year ended March 2022 largely due to supply and operational challenges. Headwinds in the form of pricing pressures, and escalating costs of solvents, raw material and logistics also impacted the earnings, he said.