The 71% (YoY) rise in net R&D expenses and tax impact of an exceptional item, Biocon’s net profit for Q3FY20 slipped 7% at Rs.203 crore.
This was on a 17% rise in revenue at Rs.1784 crore.
Operating profit was at Rs.480 crore, a rise of 18%. Margin was at 27% in Q3 v/s 26% (YoY).
Steady API sales and a robust YoY growth in Generic Formulations led to an overall growth of 16% in its small Molecules revenue to Rs 544 crore, this business crossed the Rs 100 crore revenue milepost in Q3FY20 on the back of key Formulations commercialized in U.S.
The Biologics segment reported a strong revenue growth of 31% at Rs 588 crore, led by higher traction in sales of its key biosimilars in developed and emerging markets.
Biocon launched biosimilars of Pegfilgrastim and Trastuzumab in the US with its partner Mylan.
The branded formulation business fell 26% due to pricing pressure and other headwinds continued to weigh on both the India and UAE businesses.
The market does not know whether to be happy or sad about these numbers – the stock opened lower at Rs.289 and went on to an intraday high at Rs.296.15 but currently it is down in the red at Rs.293.